Conventional mortgages and government programs are the common options for a home loan. The conventional requirements are most stringent. A borrower must demonstrate financial viability, have acceptable credit score and make a 20 percent down payment.Continue Reading
A home loan application asks for asset, debt and income information. While lenders evaluate the complete picture of an applicant's financial health, they typically want to see a 38 percent debt-to-income ratio and a 28 percent mortgage-to-income ratio.
The lender runs a credit report after a person applies. A minimum score of 580 is required by most lenders as of 2014, though the higher the score, the better the rates.
The standard down payment is 20 percent of the purchase price for a conventional loan.