Eligibility Basics

Conventional loans are private‑sector mortgages that follow Fannie Mae and Freddie Mac guidelines. To qualify, borrowers typically need a credit score of at least 620, a stable income source, and enough cash for a down payment and closing costs.

Credit and Down Payment

The higher your credit score, the more favorable your interest rate and loan terms will be. Most lenders require a minimum down payment of 3% of the purchase price, though putting down 5%–20% can eliminate private‑mortgage‑insurance (PMI) and improve rates.

Income Documentation for the Self‑Employed

Because self‑employment income can fluctuate, lenders look for consistency and the ability to repay over time. You will usually need to provide:

  • Two years of filed personal and business federal tax returns (IRS Form 1040 with Schedule C, or the appropriate corporate return)
  • A year‑to‑date profit‑and‑loss statement or balance sheet prepared by an accountant
  • Bank statements showing regular deposits that match the reported income
  • Proof of any additional income sources, such as rental or investment earnings

Lenders may also calculate an average of your net self‑employment income over the two‑year period, often adjusting for extraordinary expenses.

West Virginia Specifics

In West Virginia, many real‑estate closings are handled by attorneys rather than title‑company agents, which can affect timing and fees. The state also offers a first‑time‑buyer assistance program through the West Virginia Housing Development Fund (WVHDF). This program can provide down‑payment or closing‑cost assistance, typically expressed as a percentage of the home’s purchase price, and is compatible with conventional financing when the borrower meets the program’s income and purchase‑price limits.

Closing Process

After your loan is approved, you’ll receive a Closing Disclosure at least three business days before settlement. Review the document carefully, verify that all fees and credits are correct, and bring any required funds (down payment, closing costs, escrow reserves) to the closing appointment with your attorney.

This article provides general information and should not be considered personalized financial or lending advice.