How to Qualify for a Mortgage in 2024

Getting a mortgage is not a universal experience. How much you pay, the interest rate you get, and how long the process takes depends entirely on the mortgage you choose. The same goes for specific mortgage requirements — each lender and mortgage program will have different standards for eligibility.

Certain mortgages require a high credit score or down payment, while others require no down payment at all. Here are the typical requirements for the most common home loan types.

What are the 2024 mortgage requirements?

To get a home loan in 2024, you’ll need to navigate the different mortgage requirements set by lenders. Since each mortgage program and lender has its own set of requirements, you’ll need to find one that makes the most sense for your financial needs. 

Here are requirements for some of the most popular mortgage loans:

Conventional loan requirements

Conventional mortgages are not insured or guaranteed by the government. Instead, they’re offered by private lenders, such as banks, credit unions, or online lenders. Within this mortgage type are conforming loans, which meet certain standards to be eligible for purchase by Fannie Mae or Freddie Mac. 

To be eligible, you should meet the following standards:

• Credit score: 620 or higher, with higher scores receiving more favorable terms and interest rates.
• Down payment: 3% to 20% minimum, but the exact amount depends on your financial profile and the lender’s requirements.
• DTI: Up to 43%, however some lenders will consider borrowers with DTIs up to 45%. 
• Mortgage insurance requirements: PMI is required if you make a down payment of less than 20%. 
• Loan limits: In 2024, you can borrow up to $766,550 in most counties. However, borrowers buying in certain areas with higher costs of living can borrow up to $1,149,825.

Jumbo loan requirements

A jumbo loan, which lets you borrow amounts above the Federal Housing Finance Agency’s (FHFA) limits, can help you finance a more expensive home. Since jumbo loans exceed the limits of the FHFA, these loans are not eligible for purchase by Fannie Mae or Freddie Mac, making them a higher risk for lenders. To get one of these loans, you’ll need to prove to your lender that you have the funds to repay the loan. 

Here are the requirements that you should aim to meet: 

• Credit score: A high credit score is typically required, but the exact score you need varies by the lender you choose. You’re more likely to qualify with a score of 700 or higher. 
• Down payment: Since jumbo loans are so large, lenders typically charge higher down payments, with 10% often being the minimum. 
• DTI: Jumbo loan DTI requirements are specific to the lenders that offer them. That said, jumbo loans have strict standards, and you’ll likely need a DTI below 43% to qualify.
• Mortgage insurance requirements: Some lenders require PMI, depending on the down payment you make, but it varies by lender.
• Loan limits: Your state and county affect your conventional loan limits. In many counties, a home that costs $766,550 or more qualifies for a jumbo mortgage. In high-cost counties, the jumbo loan mortgage threshold begins at $1,149,825. 

FHA loan requirements

The Federal Housing Administration (FHA) guarantees FHA loans, which have low down payment, closing cost, and credit score requirements. 

You’ll need to meet the following requirements to be considered for an FHA mortgage loan: 

• Credit score: If you want to make a 3.5% down payment, you must have a score of 580 or higher. If your score is between 500 and 579, you can still qualify but you’ll need to make a larger down payment. 
• Down payment: The minimum down payment could be as low as 3.5% if you meet credit score requirements. If your credit score is lower than 580, your down payment will need to be at least 10%.
• DTI: The FHA allows a maximum DTI of up to 43% for most borrowers. That limit can stretch to 45% in some cases if the borrower has compensating factors. 
• Mortgage insurance requirements: You’ll be required to pay a mortgage insurance premium that could fall between 0.45% and 1.05% of the loan amount, depending on how much you borrow and your repayment term. If your down payment is more than 10%, you can remove the mortgage insurance after 11 years; if your down payment is less, insurance will be due for the entire loan term.
• Loan limits: The FHA publishes its mortgage limits, which are different depending on the county you plan to buy in, on its website. 

VA loan requirements

VA loans help veterans and active-duty military members access low-interest home loans. The main qualification for these loans is time served in the military. Current military members must serve for at least 90 days to meet basic eligibility requirements. The requirements for veterans depend on when (and sometimes where) you served. 

To qualify, you must meet or exceed the following standards:

• Credit score: The VA doesn’t provide a specific credit score necessary to take out a VA loan, but lenders set their own score requirements. Aim for 620 or higher.
• Down payment: VA loans don’t require a specific down payment as long as you’re a qualifying veteran, service member, or surviving spouse. 
• DTI: Your DTI can’t be more than 41%.
• Mortgage insurance requirements: VA loans don’t require you to pay PMI, but borrowers must pay a VA funding fee when they close on the home. The fee could be between 1.25% and 3.3% of the loan amount depending on whether you’ve used a VA loan before and how much your down payment is (if you choose to make one).
• Loan limits: The VA doesn’t limit how much you can borrow to finance your home. However, the lender you decide to work with may have its own limits. 

USDA loan requirements

USDA loans are guaranteed by the United States Department of Agriculture and are designed to help buyers with low to moderate income purchase safe housing in rural areas. To qualify for a USDA loan, the property you buy must be used as a primary residence and it must be in an area the USDA designates as rural. 

Other eligibility requirements for USDA loans include:

• Credit score: No minimum credit score is necessary to apply, but you’ll need to show you can manage payments for the life of the loan. 
• Down payment: To help lessen the financial burden of buying a home, USDA loans require no down payment or reserves. 
• DTI: All of your monthly debt payments, including your potential new mortgage payment, can’t total more than 41% of your gross monthly income. 
• Mortgage insurance requirements: Borrowers must pay an upfront guarantee fee of up to 1% of the loan amount, as well as an annual fee of 0.35% of the remaining balance. 
• Loan limits: Loan limits are determined on a case-by-case basis depending on the buyer and the property being financed.

Mortgage documents required in 2024

To get a home loan, you’ll need to provide your lender with documents that verify the claims you made on your loan application and give your lender further insight into you as a borrower. These documents can vary depending on the mortgage program that you are applying for and your lender’s needs, but you should be prepared to provide the following:

• A state ID, driver’s license, or passport
• Pay stubs 
• Federal tax returns
• Bank account statements
• Your credit report
• Proof of down payment 
• Proof of cash reserves