Get Qualified: Your Guide to Home Loan Requirements

Navigating the world of home loans can be daunting, but understanding the qualifications and necessary documents can simplify the process. Here’s a comprehensive guide to help you get started on the path to homeownership.

Types of Loans and Their Requirements

1. VA Loan

• Credit Score: 620 (but no real minimum)
• Down Payment: No down payment required

2. USDA Loan

• Credit Score: 620
• Down Payment: No down payment required

3. FHA Loan

• Credit Score: 580+ (for 3.5% down payment), 500-579 (requires 10% down payment)

4. 203K Loan

• Credit Score: 640
• Down Payment: 3.5%

5. Conventional 97 Loan

• Credit Score: 620
• Down Payment: 3%

6. Conventional Loan

• Credit Score: 640
• Down Payment: 5-20%

Income Qualifications

Qualifying Income:

• W-2 Income/Salary
• Income from part-time jobs
• Income from a second job
• Overtime & Bonuses
• Seasonal jobs
• Self-employed Income (documentation required)
• Alimony & Child Support

Non-Qualifying Income:

• Income from the lottery
• Gambling
• Unemployment pay
• Single bonuses
• Non-occupying co-signer income
• Unverifiable income
• Income from rental properties

Needed Documents

To apply for a home loan, you’ll need to gather the following documents:

• W-2s from the past 2 years
• 3 months worth of pay stubs
• Bank statements (past 3 months)
• Previous 2 years of tax returns
• List of your debts & assets
• Divorce decree (if applicable)
• Additional income documents

Conclusion

Understanding the different types of loans and their requirements is the first step toward securing your dream home. By gathering the necessary documents and verifying your income, you can streamline the loan application process and increase your chances of approval. Preparing ahead of time will make the journey to homeownership smoother and more manageable. I am happy to connect you with a local lender that has streamlined the process. 

*Loan programs are subject to change*