Conventional loans are part of standardized mortgage options established by government-sponsored entities Fannie Mae and Freddie Mac. Consequently, the qualification requirements for conventional loans are based on standardized borrower criteria.

To put it simply, a higher credit score can significantly improve your chances of obtaining a conventional purchase loan. It can help you secure more options for your down payment amount, closing costs, and monthly payments. However, if you have a lower credit score, you may need to meet higher minimum requirements to qualify for these benefits.

Other common loan programs, such as FHA or VA loans, differ in that they’re government-insured. They may allow for more flexible qualification rules, but they come with less customizable loan terms.