What are the eligibility requirements for a mortgage?

In Pennsylvania, the eligibility requirements for a mortgage depend on the type of loan being sought. Generally speaking, borrowers must demonstrate creditworthiness and meet certain financial standards. For those seeking a conventional loan, borrowers must demonstrate they have a stable source of income, prove their creditworthiness with a good credit score, have a low debt-to-income ratio, and have sufficient funds in liquid assets for a down payment and closing costs. Generally, they must also pay mortgage insurance unless they make a down payment of at least 20%. Those looking for an FHA loan must have a valid Social Security number, provide proof of employment, and have a minimum credit score of 580. An FHA loan also requires a 3.5% down payment. VA loans are available to veterans, active duty service members, and surviving spouses. Eligibility for a VA loan is determined by proof of service. In addition, some lenders may require a minimum credit score of 620 and a debt-to-income ratio of no more than 41%. VA loans also require a one-time funding fee and require proof of income and employment. When applying for any type of mortgage, it is important that borrowers meet all the requirements set by the lender. Borrowers should be sure to read the loan documents carefully to make sure they understand all the terms and conditions.

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What are the eligibility requirements for a mortgage?

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