Mortgage Eligibility

When talking about Mortgage Eligibility, the set of criteria lenders use to decide if you can get a mortgage. Also known as mortgage qualification, it decides whether you can lock in a home loan and how much you can borrow.

Understanding Mortgage Borrowing Power, the amount you can borrow based on income, debts and expenses is the first step. Lenders run the numbers through a loan‑to‑value (LTV) ratio and a debt‑to‑income (DTI) ratio. Those two ratios form a semantic triple: mortgage eligibility requires borrowing power, borrowing power depends on DTI, and DTI is driven by your credit score. Speaking of credit, your Credit Score, a three‑digit number that reflects your repayment history is a heavyweight factor. A higher score trims the DTI ceiling, letting you qualify for larger loans at better rates. If you’re eyeing a government‑backed loan, the FHA Approval, the process that checks whether a property meets Federal Housing Administration standards becomes crucial. FHA approval can open doors for buyers with lower scores or smaller down payments, showing how property eligibility influences overall mortgage eligibility.

Key Factors That Shape Your Eligibility

Beyond numbers, lenders look at employment stability, recent address history, and any past bankruptcies. The interaction between these factors creates practical rules: a steady job boosts your borrowing power, while recent late payments pull down your credit score, which in turn raises your DTI ratio. Knowing the exact thresholds—like a typical 43% DTI limit or a 620 minimum credit score for many lenders—helps you target the right loan product. When you line up these pieces, you can see the full picture of what makes you eligible. Below you’ll find articles that break down each component, from calculating your borrowing capacity to navigating FHA requirements, so you can take concrete steps toward securing the mortgage you need.