Posted by Mortgage Lenders offer a wide variety of home loans. Each comes with its own rules and requirements. In general, certain home loans are easier to qualify for than others. In this article, we rank them from easiest to most difficult for you.
The Easiest
Typically, government insured home loans are the easiest to qualify for. This includes FHA loans, VA loans and USDA loans. The reason for this is that government insured loans provide:
- Higher debt to income ratio limits
- More flexible credit guidelines
- Lower down payment options
One drawback is that typically these types of loans are for primary residence purchases and refinances only.
In The Middle
Second, in the middle of “easiest” and “hardest” is a Conforming Conventional loan. This type of mortgage is referred to as a “Fannie Mae” or “Freddie Mac” loan as well. These can be more difficult to qualify for than government insured mortgages because they have:
- Lower debt to income ratio limits
- Tighter credit underwriting guidelines
Unlike government insured loans, Conventional Conforming loans are used to finance all 3 occupancy types (Primary, Vacation and Investment).
The Most Difficult
Finally, atop the list of typically most difficult loans to qualify for is JUMBO. JUMBO loans are loans $1 or more above Conforming loan limits for a given area. These loans are generally the most difficult to get because they:
- Lower debt to income ratio limits
- Higher down payment requirements
- Tighter credit underwriting guidelines
Ultimately, It Is Case By Case
Ultimately, this is a rough ranking of the easiest mortgage to qualify for to the hardest. However, every scenario is different.