FHA, VA, Conventional Financing

Are you unsure of what is required to obtain a mortgage loan to purchase a home? 

Below are the requirements for a home loan. Depending on the lending partner recommended at the time of application, the requirements may slightly vary according to the loan products offered.

FHA

1. 580+ credit score (620+ credit score if using downpayment assistance)
2. 3.5% of purchase price used for downpayment if not utilizing a grant/loan
3. $3,000 - $5,000 for closing cost (most times can be negotiated in the contract or be gifted)
4. No bankruptcies within 2-3 years of application (depending on the chapter filed)
5. No foreclosures within the 3 years of the application date 
6. Full time (40 hrs) consistent employment for a minimum of 2 years (preferably in the same industry)
7. If not employed, proof of monthly income to show payment affordability
8. If self employed, 6 months of profit and loss statements and 1099's
9. 2 most recent bank statements (accounts that show direct deposits)
10. 2 -3 years of IRS income tax returns AND W-2's
11. Drivers license 
12. Social Security Card
13. Verification of rent for 12-24 months (depending on the lender)
14. HBE certificate if using downpayment assistance
15. 30 days of paystubs (weekly x4, bi/weekly x2, monthly x1)
16. No late pays reported on the credit report within 12-24 months of the loan application 
17. If SS, SSI, Pension, Child Support income stated, all pages of the award letter
18. If divorced, divorce decree

VA

1. 580+ credit score (no downpayment required)
2. $3,000 - $5,000 for closing cost (most times can be negotiated in the contract or be gifted)
3. No bankruptcies within 2-3 years of application (depending on the chapter filed)
4. No foreclosures within the 3 years of the application date 
5. Full time (40 hrs) consistent employment for a minimum of 2 years (preferably in the same industry)
6. If not employed, proof of monthly income to show payment affordability
7. If self employed, 6 months of profit and loss statements and 1099's
8. 2 most recent bank statements (account that shows direct deposits)
9. Proof of tax exemption and/or DD214
10. Drivers license 
11. Social Security Card
12. Verification of rent for 12-24 months (depending on the lender)
13. 30 days of paystubs (weekly x4, bi/weekly x2, monthly x1)
14. No late pays reported on the credit report within 12-24 months of the loan application 
15. If SS, SSI, Pension, Child Support income stated, all pages of the award letter
16. If divorced, divorce decree

Conventional

1. 640+ credit score (depending on the recommended lender at the time of application)
2. 3-5% of purchase price used for downpayment 
3. $3,000 - $5,000 for closing cost (most times can be negotiated in the contract or be gifted)
4. No bankruptcies within 2-3 years of application (depending on the chapter filed)
5. No foreclosures within the 7 years of the application date 
6. Full time (40 hrs) consistent employment for a minimum of 2 years (preferably in the same industry)
7. If not employed, proof of monthly income to show payment affordability
8. If self employed, 6 months of profit and loss statements and 1099's
9. 2 most recent bank statements (accounts that show direct deposits)
10. 2 -3 years of IRS income tax returns AND W-2's
11. Drivers license 
12. Social Security Card
13. 30 days of paystubs (weekly x4, bi/weekly x2, monthly x1)
14. No late pays reported on the credit report within 12-24 months of the loan application 
15. If SS, SSI, Pension, Child Support income stated, all pages of the award letter
16. If divorced, divorce decree

***This information is listed as a guide for what is required in most traditional loan processes. Some documentation may not be required for every applicant in every situation. If you have an interest in starting the process, please click on the calendar tab- and book a New Customer Intake appointment with a housing coordinator asap.