Qualifying for a Mortgage Loan

What factors determine if I qualify for a first mortgage loan?

 We always look at the total picture of the application before making a loan decision. Credit scores are just one piece of information we use. We also review employment details, income and asset information, your debt-to-income ratios, and overall ability to repay the loan.

 

Is there a minimum credit score requirement? 

Yes, a certain credit score is required to qualify for mortgage financing. This minimum score varies by loan program and is subject to change at any time. 

 

What credit score is used for determining initial eligibility? 

We pull all three credit bureaus for each eligible applicant. The lessor of the middle scores for each applicant will be the credit score for the decision-making process. 

 

What are debt-to-income ratios? 

A ratio displayed as a percentage of the total monthly debt payments (including the new mortgage loan, taxes, insurance, and HOA dues) compared to your gross monthly income (before taxes). This number is used to determine the ability to repay the loan. See our Programs Offered page for more information on our debt-to-income guidelines.

 

Can I qualify for a mortgage loan if I have had a previous bankruptcy or foreclosure? 

Yes, you may qualify for a mortgage loan after a bankruptcy or foreclosure. However, there may be a specific period afterwards that you will need to wait before becoming eligible. The waiting period can vary by type of bankruptcy and/or a foreclosed property being removed from your name and sold by your previous lender to a new individual. See our Programs Offered page for more information.

 

Can I qualify for a first mortgage loan if I have collections and charge offs reported on my credit report?

It is possible to qualify for a first mortgage loan if you have collections or charge-offs reported on your credit report. Many factors go into the decision. Restrictions vary by loan program. We always encourage you to apply! If you do not qualify, we will link you to resources that will help you on the right path to qualify later.

 

Can I qualify for a first mortgage loan if I do not have money for a down payment?

It is possible to buy a home with little to no money down! Options are available for down payment assistance and The Affordable Seconds Home Loan that allows up to 100% financing. Refer to the closing cost and down payment section for more information.