How to Qualify for Conventional

Conventional is one of the easiest government loans to qualify for. The minimum credit score is 580 (lower than conventional at 620), the down payment is just 3.5%, and DTI can go up to 57%. Valley West Mortgage approves most conventional applicants.

Yes in many cases. conventional does not require collections to be paid off unless they are large medical collections or the total exceeds certain thresholds. Your loan officer will review your specific situation.

Yes. conventional uses 1% of the outstanding student loan balance as the monthly payment if loans are in deferment or income-driven repayment. Active repayment uses the actual payment amount.

Yes. Self-employed borrowers need 2 years of tax returns showing stable or increasing income. A year-to-date profit and loss statement may also be required. Valley West works with many self-employed conventional borrowers.

Common disqualifiers: credit score below 500, DTI above 57%, active bankruptcy, foreclosure within 3 years, or purchasing a non-primary residence. Most issues can be resolved with time or the right approach.