How Do I Qualify for a Home Loan? Requirements for NC and SC Buyers
To qualify for a home loan, you generally need steady, documented income, a manageable debt-to-income ratio, a credit history that meets the loan program's standards, enough money for the down payment and closing costs, and a property that appraises and meets the program's rules. You don't need perfect credit, 20% down or the same job for decades.
Each loan program sets those standards differently, and lenders can add their own requirements on top. This guide breaks down what conventional, FHA, VA and USDA loans typically look for, so you can see where you stand before you apply.
I'm Paul Mattos, a mortgage broker with Refine Mortgage, licensed in North Carolina and South Carolina. As a broker, I compare programs from multiple wholesale lenders, which matters when your situation fits one lender's rules better than another's.
The Five Things Lenders Look At
Income and employment: how much you earn, how it's documented and whether it's likely to continue
Credit: your scores and history, including late payments, collections and past bankruptcies or foreclosures
Debt-to-income ratio (DTI): your monthly debts plus the new housing payment, divided by your gross monthly income
Assets: money for the down payment, closing costs and any required reserves, with a documented source
The property: its value, condition, type and how you'll use it
Credit Score Requirements by Loan Type
Conventional: For loans underwritten through Fannie Mae's Desktop Underwriter, Fannie Mae removed its 620 minimum credit score for files created on or after November 16, 2025, and now evaluates credit as part of an overall risk analysis. Many lenders still set their own minimums, often around 620, and your score still affects pricing and mortgage insurance.
FHA: a 580 or higher score generally allows 3.5% down. Scores from 500 to 579 generally require 10% down. Many lenders set higher minimums.
VA: the VA doesn't set a minimum score, but lenders usually do.
USDA: USDA doesn't set a minimum score for the program, but lenders usually set one, and automated approval generally favors higher scores.
A lower score doesn't automatically mean no. It often means a different program, a different lender or different pricing.
Waiting Periods After Bankruptcy or Foreclosure
If you've had a major credit event, the program determines how long you need to wait. Typical standard waiting periods:
Conventional (Fannie Mae): four years after a Chapter 7 bankruptcy discharge, two years after a Chapter 13 discharge, four years after a short sale or deed-in-lieu, and seven years after a foreclosure. Shorter periods can apply with documented extenuating circumstances.
FHA: generally two years after a Chapter 7 discharge and three years after a foreclosure. Borrowers in a Chapter 13 plan may qualify after 12 months of on-time plan payments with court approval.
VA: generally two years after a Chapter 7 discharge or a foreclosure.
Lenders may add their own requirements, and re-established credit since the event matters.
Income and Employment Requirements
Lenders want income that's stable, documented and likely to continue. A two-year history is the common benchmark, but it isn't an absolute rule.
Salaried and hourly workers: usually pay stubs and W-2s. A recent job change in the same line of work often isn't a problem.
New job or relocation: some programs allow qualifying with a signed offer letter before you start. See my guide to getting a mortgage in Charlotte using a new job offer letter.
Commission, bonus and overtime: usually averaged over a history. See how commission income is calculated and qualifying with overtime income.
Self-employed: usually qualified on tax returns after deductions, with bank statement loans as an alternative. See can self-employed borrowers get a mortgage.
Retirement income: Social Security, pensions and retirement distributions can count when documented and expected to continue.
Gaps in employment: usually need an explanation, and some programs have specific rules for returning to work.
Debt-to-Income Ratio Limits
Your DTI includes the new housing payment (principal, interest, taxes, insurance, mortgage insurance and HOA dues) plus car loans, student loans, credit card minimums and other debts.
Conventional: Fannie Mae's automated underwriting can approve DTIs up to 50%. Manually underwritten loans are generally limited to 36%, or up to 45% with strong credit and reserves.
FHA: standard guidelines are lower, but automated approvals can allow higher ratios with compensating factors.
VA: uses DTI plus a residual income test, which looks at the money left over each month after major expenses.
USDA: generally uses lower ratio guidelines, with some flexibility for strong files.
To see how DTI translates into a price range, see my affordability guides for a $50,000 salary and a $70,000 salary.
Down Payment and Asset Requirements
Conventional: as little as 3% down for some eligible buyers, 5% or more for others. Mortgage insurance applies below 20% down. See conventional home loans.
FHA: 3.5% down with a 580 or higher score. See FHA home loans.
VA: no down payment for eligible veterans and service members, with a funding fee unless exempt.
USDA: no down payment for eligible buyers in eligible areas, with household income limits. See USDA eligible areas near Charlotte.
You'll also need money for closing costs, prepaid taxes and insurance and, in North Carolina, due diligence and earnest money. Gift funds from family can often be used with proper documentation, and seller credits can help with some costs. Large or unusual deposits must be documented.
Property Requirements
The home also has to qualify:
Appraisal: the home must appraise for enough to support the loan.
Condition: FHA, VA and USDA have minimum property standards for safety and soundness.
Condos: the condo project may need to meet the program's requirements.
Occupancy: FHA, VA and USDA are for homes you'll live in. Conventional loans can also finance second homes and investment properties, with different requirements.
Location: USDA requires an eligible area.
How to Improve Your Chances of Qualifying
Check your credit early and dispute errors before you apply.
Lower credit card balances, which can help your score and your DTI.
Avoid new debt before and during the process.
Keep money where it is, or document any transfers clearly.
Gather documents like pay stubs, W-2s, tax returns and bank statements.
Talk to a loan officer early, even if you're six to 12 months away, so you have time to fix anything that comes up.
How I Help Buyers Qualify
I start with your goals and the monthly payment you're comfortable with, then review your documents, credit and income before issuing a pre-approval. If one program or lender doesn't fit, I compare others, including conventional, FHA, VA, USDA and non-QM options from multiple wholesale lenders. When you find a home, I prepare a Total Cost Analysis showing the payment and cash to close for that property.
Ready for the next step? See my guide to getting pre-approved for a home loan in Charlotte and what documents you need for a mortgage. You can read what past clients say on my reviews page.
Home Loan Qualification FAQs
What credit score do I need to buy a house?
It depends on the program and lender. FHA generally allows 3.5% down with a 580 score, and many conventional lenders look for around 620, though Fannie Mae's automated underwriting no longer has a hard minimum.
Do I need two years at the same job?
Not necessarily. Lenders look for a stable two-year history, but job changes within the same field, recent graduates and new job offers can often work.
How much money do I need to qualify?
Enough for your down payment, closing costs and any required reserves. Down payments can range from 0% for VA and USDA to 3% or 3.5% for many first-time buyers.
Can I qualify with student loans?
Yes. Student loan payments count in your DTI, and each program has its own rules for calculating them.
Can I qualify after a bankruptcy?
Often, yes, after the program's waiting period and with re-established credit.
Find Out Where You Stand
If you're buying in North Carolina or South Carolina and want to know whether you qualify today, or what to work on first, I'm glad to review your situation. We can talk by phone or video.
Schedule a mortgage consultation or start your mortgage application.
Paul Mattos Mortgage Broker | Refine Mortgage Carolina Home Financing NMLS# 2339069 | Licensed in NC and SC Call or text: 980-221-4959 Email: paulm@refinemortgage.net
Refine Mortgage Inc. | NMLS# 2417960 | Equal Housing Lender. This article provides general educational information and is not a commitment to lend, a rate quote, or an offer of specific credit terms. Program guidelines and lender requirements change and may be stricter than the minimums described. Approval, pricing, and program availability depend on credit, income, assets, property, appraisal, and underwriting requirements. Not all applicants will qualify.
