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What does it take to qualify for a home loan?

The days of the easy money, and just about everyone getting a home loan are long gone. Today, mortgage lenders are required to prove and document your ability to safely afford the house payment, and show that you are responsible with OK or better credit.

So you’ll usually need these things in order to get a home mortgage loan:

  • Enough money for the Down Payment (3% is realistically your minimum)
  • Two years of good steady employment
  • OK or better credit score (640 or higher is your target)
  • Monthly income that’s about 3 times higher than your expected monthly mortgage payment
  • Keep your debt low (especially credit card balances)
  • Any major negative item be OLD (bankruptcies, foreclosure)
Apply Online
No Obligation to apply, and see what YOU qualify for.

Don’t meet that basic criteria today? Consider these additional options.

  • Down payment assistance is potentially available (You still need a few thousand dollars MINIMUM).
  • No Down payment is possible if you are US Military (VA Loan) or want to buy a home in a rural area (You still need a few thousand dollars MINIMUM)
  • Apply anyway. Don’t assume you can’t get a mortgage. There may be a loans option. Even if it is a not today, they can let you know where your deficiencies are so you can work towards qualifying in the future.
  • Use a Mortgage Broker. A mortgage broker represents lots of different lenders, not just the offerings of one bank. They simply have more options than banks and credit unions.
  • Get a co-signor. See if a family member or very close friend with a higher income and better credit than yours will cosign a loan for you.
  • Lack of Down Payment.  Many program allow you to get a gift for down payment from your family. You can also borrow money for down payment from your 401k
  • No proof of income?  True no proof of income loans don’t exist anymore, but you can possibly get a non-conforming loan by using your bank statement deposits as qualifying income. These loans come with higher interest rates, so you should always try for a traditional loan first.

Plan for the future. 

Even if you can’t buy a home right now, one fact I know, is if you do nothing, nothing will change. If you understand the guidelines and work at it, there is no reason why anyone can not be a home owner in the not too distant future.

Buy a MN Home with $1,000 Down and Down Payment Assistance

Buy a MN home with as little as $1,000 down? Yes, it is possible.

Minneapolis, MN:  One of the biggest true hurdles to home ownership is a lack of down payment money. Sadly, many people don’t even apply for a home loan, because they think you need a much bigger down payment than you actually may.

You may qualify for down payment assistance. Apply to find out.
You may qualify for down payment assistance. Apply to find out.

But, if you have at least $1,000 of your own money, are buying in Minnesota, have OK or better credit (640 score or higher), you may be able to buy your own home using our first time home buyer programs with down payment assistance.

Other low down payment options include:

  1. 3% down payment conventional loans (HomeReady and Home Possible)
  2. 3.50% down payment FHA loans
  3. No down payment VA loans
  4. No down payment USDA Rural development loans.

If you are in MN, WI, IA, ND, SD – Simply complete the secure online application at www.FirstTimeHomeBuyer-MN.com in about 10 minutes time. A fully licensed and experienced Loan Officer will review your loan application, then go over the various program to see what programs you qualify for, how much house you can buy, what the payments might look like, and finally, how much cash you may, or may not need to put it all together.

If you are in other states, simply find a LOCAL mortgage broker, and apply with them.

You have nothing to lose in applying, and everything to gain in owning your own home!

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Joe Metzler is a Senior Mortgage Loan Officer for Minnesota based Cambria Mortgage. He was named the 2014 Minnesota Loan Officer of the Year, and Top 300 Loan Officers in the Nation for 2010, 2015, 2016.

To finance with a home with Joe and Cambria Mortgage, your local preferred lender for Minnesota, Wisconsin, Iowa, North Dakota, South Dakota, simply call (651) 552-3681 or APPLY ONLINE. NMLS 274132. Equal Housing Lender. Not everyone will qualify. See web site for more details. Not an offer to enter into an interest rate lock agreement.