Conventional Loan Requirements 2025
Even with market fluctuations and economic headwinds, owning a home is still one of the surest ways to increase personal equity and shore up financial security. Conventional loans are how many Americans purchase homes. Requirements for obtaining a conventional loan change yearly.
What is a conventional loan?
How to qualify for a conventional loan
Conforming loan limits in 2025
Types of conventional loans
How to get a conventional loan
What is a conventional loan?
A conventional home loan does not have backing from a government agency the way an FHA, USDA, or VA loan does. Instead, it’s underwritten by private mortgage lenders.
Conventional loans appeal to homebuyers with strong financial standing and good credit histories. Terms and conditions of conventional loans vary according to the lender. They may be available with either fixed or adjustable interest rates.
How to qualify for a conventional loan
Here’s a summary of the qualification limits for a conventional home loan.
Credit score
In 2025, a buyer needs a credit score of 620 or higher for a conventional mortgage loan. This is a comparatively low rate, squarely in the middle of the "fair" score range. Scores of 670 or higher are considered "good."
Credit scores come from three separate agencies: Experian, Equifax, and TransUnion. Mortgage lenders will consider the single score in the middle. They may approve borrowers with lower credit scores, but that approval will come with more stringent requirements and higher mortgage interest rates.
Down payment
There’s a misconception that if a buyer puts down less than 20%, they’ll have trouble repaying their mortgage. This isn’t quite true. The median down payment on a house in the United States in 2025 is 13%, so it’s possible to obtain a loan with a payment of less than 20%.
Even with market fluctuations and economic headwinds, owning a home is still one of the surest ways to increase personal equity and shore up financial security. Conventional loans are how many Americans purchase homes. Requirements for obtaining a conventional loan change yearly.
What is a conventional loan?
How to qualify for a conventional loan
Conforming loan limits in 2025
Types of conventional loans
How to get a conventional loan
What is a conventional loan?
A conventional home loan does not have backing from a government agency the way an FHA, USDA, or VA loan does. Instead, it’s underwritten by private mortgage lenders.
Conventional loans appeal to homebuyers with strong financial standing and good credit histories. Terms and conditions of conventional loans vary according to the lender. They may be available with either fixed or adjustable interest rates.
How to qualify for a conventional loan
Here’s a summary of the qualification limits for a conventional home loan.
Credit score
In 2025, a buyer needs a credit score of 620 or higher for a conventional mortgage loan. This is a comparatively low rate, squarely in the middle of the "fair" score range. Scores of 670 or higher are considered "good."
Credit scores come from three separate agencies: Experian, Equifax, and TransUnion. Mortgage lenders will consider the single score in the middle. They may approve borrowers with lower credit scores, but that approval will come with more stringent requirements and higher mortgage interest rates.
Down payment
There’s a misconception that if a buyer puts down less than 20%, they’ll have trouble repaying their mortgage. This isn’t quite true. The median down payment on a house in the United States in 2025 is 13%, so it’s possible to obtain a loan with a payment of less than 20%.