Conventional Loan Standards??

[MBOhio2]

What are the basic standards for qualifying for a conventional mortgage loan?

I understand that they generally require higher down payments and better credit and, I understand that each situation is completelu unique. However, are there general guidelines for what a person must do/have to qualify? Is there a minimum score requirement? Is there a minimum down payment amount? Are there any baddies on a credit report that would knock a person out from qualification (e.g. unpaid charge-off)?

[ShanetheMortgageMan]

Generally you'll want a debt to income ratio no more than 45% (41% if your loan needs PMI), and a 680 score (720 if you need a 45% DTI or just 3% down), 5% down payment (3% needs to come from your own funds if your loan needs PMI), collections/charge-offs over $2,500 combined are required to be paid if your loan requires PMI (if your loan doesn't need PMI, it's up to the lender's discretion), no charge-offs/collections in the past 2 years, and usually no more than 1 or 2 late payments in the last 2 years.

[MBOhio2]

Thanks Shane! My student loan charge-offs obviously prevent us from being able to qualify, but I wanted to at least ask the question since these new FHA loan limits are requiring us to put down a MUCH larger down payment than we expected!!