Mortgage Approval Requirements: Per Loan Options
Home Purchase Loans
Requirements:
- Income: Stable employment and verifiable income for the past 2 years.
- Credit Score: Minimum 620 for conventional loans; FHA loans allow 580 or 500 with a higher down payment.
- DTI: Maximum 43% for conventional loans; FHA allows up to 50% with compensating factors.
- Property Type: Single-family homes, condos, townhomes, and multi-unit properties (up to 4 units).
- Down Payment: 3%–20%, depending on the loan type.
Helpful Links:
- Learn more about FHA home loan programs: U.S. Department of Housing and Urban Development (HUD)
Documents Needed:
Refer to our Document Checklist for details on income verification, asset statements, and identification.
Get your free credit score here.
Disclaimer: Advertised rates and fees depend on borrower qualifications and market fluctuations.
Mortgage Refinancing
Requirements:
- Income: Proof of income is required to demonstrate your ability to repay the loan.
- Credit Score: Minimum 620 for conventional refinancing; FHA Streamline Refinances may allow scores as low as 580.
- DTI: Up to 43% for conventional loans; FHA allows up to 50% with compensating factors.
- Equity: Typically at least 20% equity for conventional cash-out refinancing.
Helpful Links:
- FHA Streamline Refinancing Overview: HUD Streamline Refinancing Guide
At Simply Approved Mortgages, we operate with a 1.5% fee, significantly below the industry standard. This ensures more savings for borrowers without compromising service quality.
Disclaimer: Simply Approved Mortgages complies with all state and federal licensing requirements that we are licensed in.
Home Equity Loans and HELOCs
Requirements:
- Income: Consistent income to support additional monthly payments.
- Credit Score: Minimum 620; higher scores preferred for lower interest rates.
- DTI: Maximum 43%.
- Equity: At least 15%–20% home equity is required.
Helpful Links:
- Home Equity Consumer Information: Consumer Financial Protection Bureau (CFPB)
VA Loans
Requirements:
- Income: Sufficient residual income to meet VA guidelines.
- Credit Score: No official minimum, but most lenders prefer 580–620.
- DTI: Maximum 41%, but exceptions are allowed with sufficient residual income.
- Property Type: Primary residences only; cannot be used for vacation or investment properties.
- Eligibility: VA Certificate of Eligibility (COE) required.
Helpful Links:
- VA Loan Overview and Benefits: U.S. Department of Veterans Affairs
Reverse Mortgages
Requirements:
- Age: Borrower must be 62 years or older.
- Home Equity: Must have significant equity in the home.
- Credit Score: No minimum credit score required.
- DTI: Not applicable; equity and home value are primary factors.
- Property Type: Primary residence only.
Helpful Links:
- Reverse Mortgage Consumer Protections: Federal Trade Commission (FTC)
Why Simply Approved Mortgages Stands Out
Lower Fees, Bigger Savings:
With our industry-leading 1.5% fee, compared to the standard 2.75%, we save you thousands while offering competitive rates tailored to your needs. Learn More.
Expert Guidance:
Our team of seasoned professionals is dedicated to simplifying the mortgage process, providing personalized solutions, and ensuring you feel confident every step of the way.
Transparent and Trustworthy:
We prioritize honesty and clarity. From disclosing every detail upfront to ensuring no hidden surprises, we build trust through our commitment to your financial success.
Mortgage Approval Requirements: Other Loan Options
ITIN Mortgages
Requirements:
- Income: Proof of income, including pay stubs or bank statements for self-employed borrowers.
- Credit Score: No traditional credit required; alternative credit like rental payment history may be used.
- DTI: Maximum 43%.
- ITIN: Valid Individual Taxpayer Identification Number (ITIN).
Helpful Links:
Disclaimer: Advertised rates and fees depend on borrower qualifications and market fluctuations.
DSCR Mortgages (Debt Service Coverage Ratio)
Requirements:
- Income: No personal income required; loan approval based on property’s rental income.
- Credit Score: Minimum 620.
- DTI: Not applicable; DSCR measures property income versus expenses.
- Property Type: Investment properties only.
At Simply Approved Mortgages, we operate with a 1.5% fee, significantly below the industry standard. This ensures more savings for borrowers without compromising service quality.
Disclaimer: Simply Approved Mortgages complies with all state and federal licensing requirements that we are licensed in.
Jumbo Loans
Requirements:
- Income: High income with tax returns to verify.
- Credit Score: Minimum 700 due to larger loan amounts.
- DTI: Maximum 43%.
- Property Type: Luxury homes, investment properties, or vacation homes.
- Down Payment: 10%–20%.
FHA Loans
Requirements:
- Income: Steady employment and verifiable income.
- Credit Score: 580+ with a 3.5% down payment; 500–579 with a 10% down payment.
- DTI: Up to 50% with compensating factors.
- Property Type: Primary residences only.
Conventional Loans
Requirements:
- Income: Proof of steady income for at least 2 years.
- Credit Score: Minimum 620; higher scores result in better terms.
- DTI: Maximum 43%.
- Property Type: Primary residences, vacation homes, and investment properties.
Foreign National Mortgages
Foreign national mortgages are tailored for non-U.S. citizens who wish to purchase or invest in property within the United States. These loans provide opportunities for international buyers to access U.S. real estate with specific requirements.
Requirements:
- Income: Proof of international income or assets may be required.
- Credit Score: Traditional U.S. credit history is not mandatory; international credit or alternative credit references may be used.
- DTI: Typically not applicable; loan approval is often based on down payment and reserves.
- Down Payment: Minimum 30%–40%, depending on the lender and property type.
- Visa or Passport: Valid visa, passport, or foreign ID is required.
Property Type:
- Primary residences, vacation homes, and investment properties are eligible.
Documents Needed:
- Passport or visa.
- International proof of income or bank statements.
- U.S. property purchase agreement.
General Documentation Required for All Loans
No matter the loan type, lenders generally require the following:
- Identification: Government-issued photo ID for all applicants.
- Income Verification: Recent pay stubs, W-2s, or tax returns.
- Assets: Bank statements for savings and investment accounts.
- Property Details: Purchase agreement, homeowner’s insurance, and appraisal report.
For a detailed breakdown, visit our Document Checklist.
Get Started With Our Home Affordability Calculator
Take control of your home-buying journey today. Use our Home Affordability Calculator to estimate how much house you can afford and start planning your dream home purchase with confidence.
Start Now:
- Use the Home Affordability Calculator
- Rent vs Buy Calculator
- Net Proceeds Calculator
- Explore Mortgage Options
Simply input your details and see how much equity you could access today. If you have questions or need assistance, our team is here to guide you every step of the way.
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