This document provides guidance to determine if a potential homebuyer qualifies for a mortgage loan by answering a series of questions about their credit score, employment history, debt-to-income ratio, savings, and citizenship status. It indicates that buyers with credit scores below 640, less than 2 years of employment, debt-to-income ratios over 36%, little savings for a down payment, and who are not US citizens will likely not qualify for a loan but provides options to improve their chances such as paying down debt, saving more, or getting a cosigner.

1. Do I Qualify for a Mortgage Loan?
ANSWER THESE QUESTIONS TO DETERMINE IF A BANK WILL GIVE YOU A MORTGAGE LOAN
What is your credit score?
OK
Awesome
Low Below
About 640
Well above 640
Below 640
How long have you been employed?
Check credit history and work on improving your credit score
How much of your income
will go to the mortgage?
2+ years
<2 years
Unemployed
Be prepared to wait or show stable employment history.
Most of It
All of It
I would have some left
after making my mortgage
payments
I would struggle to make
mortgage payments
How much money have
you saved?
Not Much
My income is at least twice as high
as my mortgage payments
A Lot
None
Enough for a 20%
+ down payment
You may want to consider buying a less expensive home
Little or no savings
for a down payment
A Little
Enough for at least a
3.5% down payment
What will your debt to
income ratio be?
You will likely need to pay a private mortgage insurance (PMI)
on your loan
Monthly Debt/Monthly Income
>36%
About 36%
Below 36%
Are you a U.S. citizen or do you
have resident alien status?
Paying down some of your debt may help you qualify
Lots of Yellows or Did Not Qualify?
Yes
No
Trouble qualifying for a mortgage loan? Consider these options:

Wait and work on repairing your credit, paying down debt and
saving for your down payment.

Get a cosigner, someone with a better credit score and higher
income that will be able to make your payments, if necessary.

Contact a mortgage broker; they work with many lenders and
may be able to find a loan.
800-385-3657 | www.pmccanhelp.com
You Will Qualify
You
Will Not
Qualify
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