To qualify for a conventional mortgage (or qualified mortgage) you’ll require a minimum credit score of 620 or higher. The better your credit score, the better your interest rate. Ultimately your final interest rate will be determined based on the 3 major factors; 1. The loan to value (i.e the loan amount as a percentage of the sale price) 2. Your credit score (and history) and 3. Property type and occupancy. Your interest rate will vary if you’re buying a primary home vs. an investment property. Will also vary between a single family home and a condominium or a Four-plex. Higher credit scores generally qualify for lower down payments and better rates. All Conventional loans (Qualified Mortgages) require tax returns to verify income and calculate the debt-to-income (DTI) which is capped at 43%, but ask your mortgage broker to review your specific home loan purchase or refinance question(s).
