Purchasing your first home can be overwhelming, and how do you know if you're ready for homeownership anyway?
What key factors are considered when determining your eligibility for a mortgage loan?
What do you need to know to become a successful homeowner?
Lenders consider if you are financially able to repay a mortgage loan.
Debt-to-income ratio: The monthly debt you have (or will have after your mortgage) divided by your monthly income.
Conventional loans: Not backed by the government and are typically strict on a DTI of 36% or lower.
Government-backed loans: FHA, USDA, and VA are lenient and may let you slide with slightly higher DTI ratios between 41-50% with proof you can afford to repay your loan.
Credit Score: Your credit score is determined based on your past payment history and borrowing behaviors. Higher scores tend to get approved with a better interest rate.
Work History: Lenders want to see at least two years of work history.
Homebuyer Education Certificate: Down-payment assistance programs typically require individuals to obtain a homebuyer certificate as a prerequisite for assistance.
Notice: All submissions are completely anonymous. We have no way of knowing who submits this form. This form is for you to gauge your readiness for homeownership and does not automatically qualify you for homeownership. The scores determined are strictly determined by the Dynamic Data homeownership counseling criteria and may look different in other homebuyer education programs. Dynamic is a HUD-certified homebuyer education agency.