Mortgage Requirements by Loan Type: Credit, Down Payment and DTI in 2026

Mortgage requirements by loan type vary more than most buyers expect. FHA accepts credit scores from 500 and asks for 3.5% down at 580. VA and USDA loans can require no down payment for eligible borrowers. Conventional loans start at 3% down. Jumbo, non-QM and ITIN loans follow each lender’s own rules, which are usually stricter on credit, down payment and savings.

This guide puts the 2026 rules for seven loan types side by side: FHA, VA, USDA, conventional, jumbo, non-QM and ITIN. It covers credit scores, down payments, debt-to-income ratios, reserves, documents and residency. Every government and Fannie Mae figure was checked against official sources in October 2026.

Where a program has no official minimum, we say so instead of guessing. For plain-language overviews of each loan, browse the first-time buyers hub.

Mortgage requirements at a glance

The quickest way to compare loans is by the three numbers lenders look at first: credit score, down payment and debt-to-income ratio. Government programs publish their own rules. Conventional loans follow Fannie Mae and Freddie Mac. Jumbo, non-QM and ITIN loans are set lender by lender.

What credit score do I need to buy a house?

The lowest official credit floor is FHA’s 500, which requires 10% down; 580 and above qualifies for 3.5% down. Fannie Mae requires 620 for manually underwritten fixed-rate loans and 640 for adjustable-rate loans, but sets no minimum for loans approved through its Desktop Underwriter system. VA and USDA leave minimums to lenders.

You can see your credit reports for free at AnnualCreditReport.com. Fixing errors before you apply can raise your score.

How much down payment does each loan need?

VA and USDA guaranteed loans can require nothing down. Conventional loans start at 3% with HomeReady or Home Possible. FHA needs 3.5% at a 580 score or 10% at 500 to 579. Jumbo, non-QM and ITIN loans usually need more, and the exact amount is set by the lender.

Down payment assistance can cover part or all of these amounts on many loans. See our guide to down payment assistance programs.

What DTI do lenders allow?

Common debt-to-income limits are 43% for FHA manual underwriting, 41% for VA (paired with residual income) and USDA, and 36% to 45% for Fannie Mae manual loans. Automated systems can allow more: Fannie Mae’s Desktop Underwriter allows up to 50%. Non-QM and ITIN lenders must still confirm your ability to repay.

VA’s residual income test is unique. For a family of four borrowing $80,000 or more, the guideline ranges from $1,003 a month in the Midwest and South to $1,117 in the West, under 38 CFR 36.4340.

How many months of reserves do I need?

Reserves are savings left after closing, measured in months of your full housing payment. Most one-unit government loans have no fixed reserve rule, though reserves help as a compensating factor. FHA requires three months for three- to four-unit homes. Conventional reserves are set by Fannie Mae’s automated system or eligibility matrix. Jumbo and non-QM lenders often ask for more.

What documents do lenders ask for?

Almost every mortgage requires proof of identity, income, assets and debts. Government loans add their own forms, such as VA’s Certificate of Eligibility. USDA checks income for every adult in the household. Non-QM loans may use bank statements instead of tax returns. ITIN loans use your IRS-issued ITIN in place of a Social Security number.

Self-employed borrowers usually need two years of tax returns for standard loans. Some non-QM lenders accept bank statements instead.

Residency and citizenship rules by loan type

Residency rules changed in 2025. FHA now accepts only US citizens, lawful permanent residents and citizens of Micronesia, the Marshall Islands and Palau. USDA accepts citizens, non-citizen nationals and qualified aliens. Fannie Mae accepts lawful permanent and non-permanent residents. ITIN and some non-QM loans serve borrowers outside these groups.

The FHA change comes from HUD Mortgagee Letter 2025-09. Fannie Mae’s rule is in Selling Guide B2-2-02, which leaves it to the lender to confirm legal presence. Freddie Mac has its own documentation rules, so ask your lender how it applies them.

According to the IRS, an ITIN is a tax processing number only. It does not authorize work or change immigration status. Lenders that offer ITIN loans set their own rules; see our ITIN mortgage guide.

Loan limits by loan type in 2026

Loan limits cap how much a program will back. For 2026, the conforming limit for a one-unit home is $832,750 in most of the country and up to $1,249,125 in high-cost areas. FHA limits run from $541,287 to $1,249,125. VA has no limit with full entitlement. USDA has no set dollar limit, but its income cap restricts size.

Sources: FHFA, HUD and VA. Loans above the conforming limit are jumbo loans, with rules set by each lender.

How do non-QM and ITIN loans fit in?

Non-QM loans are mortgages that do not meet the federal “qualified mortgage” definition. They can use bank statements, assets or rental income instead of standard documents. They still must meet the federal ability-to-repay rule, which requires the lender to consider eight factors, including income, debts, DTI or residual income, and credit history.

Non-QM loans often cost more than conventional or government loans. They can be useful for self-employed borrowers, investors and borrowers with nonstandard income. Our non-QM loans guide covers the trade-offs.

How to use these requirements to choose a loan

Start with the program you are eligible for, then compare costs. Military service points to VA first. A rural address and moderate income point to USDA. A score below about 680 often points to FHA. Strong credit points to conventional. Lender-set loans fill the gaps for jumbo amounts, nonstandard income and ITIN borrowers.

1. Check eligibility filters first: military service, property location, household income and residency status.
2. Pull your credit reports and note your score range.
3. Count your cash for the down payment, closing costs and reserves.
4. Estimate your DTI using your gross monthly income and current debts.
5. Match those numbers to the tables above to shortlist two or three loan types.
6. Request Loan Estimates from at least two lenders for each shortlisted type and compare total costs.

You can read the full rules for each program in our guides to FHA loans, VA loans, USDA loans and conventional loans.