Conventional Mortgage Lenders
A conventional mortgage is simply a non-government mortgage. These loans are not backed by the FHA, VA or USDA. … The size of the home loan (limits varies by state) Minimum credit score requirement (usually 620) Down payment requirements (can be as low as 5%)
in portfolio by small creditors);
§ Maximum loan term is less than or equal to 30 years.
Three main categories
1. General definition category of QMs
Any loan that meets the product feature requirements with a debt-to-income ratio of 43% or less is a QM.
2. “GSE-eligible” category of QMs
Any loan that meets the product feature requirements and is eligible for purchase, guarantee, or
insurance by a GSE, FHA, VA, or USDA is QM regardless of the debt-to-income ratio (this QM category
applies for GSE loans as long as the GSEs are in FHFA conservatorship and for federal agency loans until
an agency issues its own QM rules, or January 10, 2021, whichever occurs first).
3. Small creditor category of QMs
If you have less than $2B in assets and originate 500 or fewer first mortgages per year, loans you make
and hold in portfolio are QMs as long as you have considered and verified a borrower’s debt-to-income
ratio (though no specific DTI limit applies).