To qualify for a conventional loan, hit these marks: ~620+ credit, DTI under ~43–45%, 3–5%+ down (documented), two years of income history, and ideally a reserve cushion — then get pre-approved. The two highest-impact moves are raising your credit and lowering your debt before you apply. This page is the action plan; for the exact numbers see Requirements, and for who's eligible, Eligibility.
The 7-step playbook
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Know your targets
You can't hit a number you don't know. The conventional benchmarks: ~620+ credit, DTI under ~43–45% (higher with strong factors), and 3–5% down minimum. Knowing where you stand against each tells you which steps below matter most for you. Full detail on the Requirements page.
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Strengthen your credit
Because conventional pricing is credit-based, this is the highest-leverage step. Tactics that work:
- Pay every bill on time — payment history is the biggest factor.
- Lower card balances below 30% of their limits (lower is better) — utilization moves scores fast.
- Don't open new credit or rack up inquiries before applying.
- Keep old accounts open — length of history helps.
- Dispute errors on your reports — mistakes are common and fixable.
Even a 20–40 point gain can bump you into a better pricing tier and a lower rate.
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Lower your debt-to-income
DTI compares your monthly debt payments to your income, so the move that helps most is eliminating a monthly payment — paying off a nearly-done car loan or a credit card, rather than spreading cash across many balances. And crucially: don't add new debt before or during the process. See how DTI is measured in Requirements.
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Save and source your down payment
You need 3–20%+ of the price, and lenders care not just that you have it but where it came from. Keep it in a documented account, season large deposits (let them sit and be explainable), and remember gift funds are allowed with a gift letter. Avoid cash deposits you can't trace. More down also means a lower rate and, at 20%, no PMI.
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Document your income
Gather two years of W-2s and tax returns, recent pay stubs, and bank statements. If you're self-employed, prepare two years of returns — or, if write-offs shrink your qualifying income, look at a bank statement loan that qualifies you on cash flow instead.
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Build cash reserves
Keep a few months of mortgage payments in savings after your down payment and closing costs. Reserves strengthen your file as a compensating factor and are sometimes required — for investment properties, higher DTIs, or jumbo loans. Don't drain every dollar to close.
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Get pre-approved
The finish line of qualifying. Submit your documents for a verified pre-approval letter that confirms exactly what you qualify for and signals to sellers you're ready to perform. This is where a broker shops your file across lenders for the best fit. Pre-approval guide →
How to qualify with a weak file
Not there yet on one of the marks? Here's the honest routing — often you qualify anyway, just through a different door:
| If your challenge is… | Your best move |
|---|---|
| Credit under ~620 | Improve it, or use FHA (down to 580) |
| A recent bankruptcy/foreclosure | FHA (shorter waits) or non-QM |
| DTI too high | Pay off a payment, or FHA (higher DTI ceiling) |
| Self-employed, low taxable income | Bank statement or 1099 loan |
| Thin down payment | HomeReady/Home Possible (3%), gift funds, or DPA |
| Loan above the limit | Jumbo loan |
The point: "not qualified yet" rarely means "not qualified." A good broker either gets you conventional-ready or finds the program that fits today.
A realistic timeline
How long qualifying takes depends on your starting point:
- Already strong? You can be pre-approved in 1–3 days once documents are in.
- Minor credit work? A month or two of on-time payments and lower balances can move your score.
- Bigger rebuild? Three to six months of focused credit and debt work often does it — and we'll give you a specific plan.
How-to-qualify FAQs
How do I qualify for a conventional loan?
Reach ~620+ credit, DTI under ~43–45%, 3–5%+ down (documented), two years of income history, and get pre-approved. Raising credit and lowering debt first are the highest-impact steps.
How do I raise my credit score fast?
Pay on time, get card balances under 30% of limits, avoid new inquiries, keep old accounts open, and dispute errors. Even 20–40 points can improve your rate.
How do I lower my DTI?
Eliminate a monthly payment — pay off a near-done car loan or a card — and don't take on new debt. DTI is based on monthly payments vs income, so removing a payment helps most.
What documents do I need?
Photo ID, ~30 days of pay stubs, two years of W-2s and tax returns, and 2–3 months of bank statements. Gift funds need a gift letter.
What if I don't qualify yet?
You have options — FHA for lower credit, bank statement loans for the self-employed, or a short plan to get conventional-ready, often in a few months.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey.