Looking for the lowest long-term cost? Conventional loans offer the most flexibility
for those with stable income and solid credit.
Standard guidelines for a NextGen Conventional Loan.
No universal minimum credit score is required, though higher scores qualify for better rates and terms.

As little as 3% for first-time buyers. 5% to 20% for repeat buyers or specialized programs.

Normally, debt-to-income ratio should be 43% or lower, though exceptions exist up to 50%.

Primary residences, second homes, and investment properties (1-4 units) are all eligible.
Which path is right for your financial profile?
Best for borrowers with higher credit scores and lower debt.
PMI can be removed once you reach 20% equity (lowering your monthly payment automatically).
Lower overall lifetime costs than FHA for strong credit profiles.
Used for second homes or investment properties.
Best for borrowers with lower credit scores or smaller down payments.
Mortgage insurance (MIP) usually stays for the life of the loan.
More lenient credit score requirements (500+).
Limited to primary residences only.
Gather these documents to speed up your
pre-approval process.
Last 2 years of W-2 forms
Most recent 30 days of paystubs
Last 2 years of Federal Tax Returns
60 days of Bank Statements
Proof of Down Payment (Savings)
Driver's License or Passport
Estimate your monthly mortgage payment using home price, down payment, interest rate, and loan term. Get a quick principal and interest estimate for your home buying budget.
Gather these documents to speed up your
pre-approval process.
There is no standard minimum credit score set by Fannie Mae or Freddie Mac. Approval is based on the full loan profile, and some borrowers may qualify without a traditional credit score.
Conventional loans can require as little as 3% down for qualified first-time buyers. Repeat buyers usually put down 5% to 20%, depending on the loan structure and financial profile.
Yes, if you put down less than 20%, PMI is required. The good news is that PMI can be removed once you reach 20% equity in your home, lowering your monthly payment.
Yes. Conventional loans can be used for primary residences, second homes, and investment properties (1–4 units). FHA loans, by contrast, are limited to primary residences only.
Conventional loans are typically better for borrowers with strong credit and lower debt. They often have lower lifetime costs and allow PMI removal. FHA loans may be more suitable for borrowers with lower credit scores or smaller down payments.
NextGen Mortgage can issue conventional loan pre-approvals in as little as 15 minutes.