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Top 3 Reasons People Don't Qualify for a Mortgage
Poor Credit
The credit score required to qualify for a mortgage varies depending on the specific lender and type of mortgage you seek. Generally, a conventional mortgage or VA loan requires a minimum credit score 620, while a USDA loan requires 640. Meanwhile, an FHA loan can be obtained with a minimum score of 500, but a higher down payment will be necessary in this case.
Insufficient Income
Based on your current monthly payments and future mortgage payments, your gross monthly income may not be sufficient to cover all of your expenses.
Debt-To-Income Ratio
When applying for a loan, your monthly debt-to-income ratio will be evaluated by lenders. If your monthly housing payments are on the higher side, it might pose a challenge in getting approved for a loan.