The two most common are VA loans and USDA loans. However, these are reserved for military/veterans and those buying in rural areas, respectively.

Assuming either of those are YOU, the down payment is no longer a hurdle. They allow 100% financing.

Even if you don’t qualify for those loan types, there are credit unions that offer zero down mortgages.

And many state housing finance agencies that offer grants and down payment assistance.

Some private lenders also offer grants. Rocket Mortgage launched “Purchase Plus” in late December.

It offers up to $7,500 in closing cost credits for first-time home buyers to use toward their mortgage costs.

Purchase Plus is available in specific census tracts in Atlanta, Baltimore, Chicago, Detroit, Memphis and Philadelphia.

And Guaranteed Rate just launched a “Special Purpose Credit Program” in the same cities that provides up to $8,000 in assistance to underserved borrowers.

That’s a minimum of $5,000 in down payment and closing cost assistance, and up to an additional 1% of the sales price (or $3,000).

Many Types of Mortgages Only Require a 3-3.5% Down Payment

Even if you don’t qualify for zero down financing, conforming loans backed by Fannie Mae and Freddie Mac only require 3% down.

Conforming loans are the most common type of mortgage, offered by pretty much every bank and lender in the nation.

Fannie Mae’s offering is known as HomeReady Mortgage, while Freddie Mac’s is called Home Possible.

Both require a minimum FICO score of 620, which is pretty low and what some would consider easy to qualify for.

Additionally, they allow for boarder income so roommates/renters can contribute to your income to help qualify for the loan.

If you don’t have a 620 FICO score, there’s the FHA loan, which requires a minimum score of 580 with 3.5% down payment. Or as low as 500 if you can muster 10% down somehow.

If Your Credit Scores Are Low…

If you’ve got decent income and assets, but your credit scores are a problem, you still might be in luck.

For example, there is no minimum credit score requirement for VA loans, per the VA.

But individual lenders will still impose their own limits, which may be 580 or higher. Still, that’s very accommodating.

The USDA home loan program also doesn’t impose a minimum credit score, but most lenders want a 640 FICO or higher.

As mentioned above, Fannie Mae and Freddie Mac require a minimum 620 FICO. However, it’s possible to get approved with a lower score if you have a co-borrower with higher scores.

And the FHA only requires the 580 FICO for max financing (3.5% down).

So you’ve got several very liberal options to choose from that approve those with pretty low credit scores.

If Your Income Is Limited…

If income is your problem, you may still not have any issues as most home loan types are also pretty flexible in this department too.

With regard to your debt-to-income ratio (DTI), a conforming loan backed by Fannie Mae will allow a DTI ratio as high as 50%.

The FHA can go even higher, to a staggering 56.9%. The VA doesn’t have a maximum DTI, and can also go quite high depending on the circumstances.

USDA loans are generally stricter and want a DTI of 41% or lower, but may allow up to 46%.

Even if income is an issue for you, there’s the possibility to use a co-borrower or boarder income to help you qualify.

[What Mortgage Has the Best Rate?]

If You Are Recently Employed…

While income is one thing, employment history is another. Mortgage lenders are happy you’re making what you’re making.

But they want to know that you’ll be making that money consistently into the future. Mortgages can last 30 years, remember?

This means they typically want to see a two-year employment history to consider the income stable.

But once again, there are exceptions to the rule and it’s often possible to qualify with less than two years employment. Or even one year.

Across all loan types, a letter of explanation and supporting documentation may allow for limited employment history.

For example, a recent graduate may qualify for a mortgage if employment is likely to continue. Same goes for a medical school graduate (see physician mortgages for more on that).

Ultimately, there are lots of ways around the typical two-year requirement if you can demonstrate employment stability.

It also helps if you have good credit and/or money in the bank to offset such a risk.

Jumbo Loans Are Probably the Hardest Mortgages to Qualify For

While I’ve hopefully highlighted the fact that most mortgages are actually pretty easy to qualify for, there’s one category that isn’t.

I’m talking about jumbo loans, which exceed the conforming loan limit. These loans are offered by jumbo lenders, and are often backed by the companies themselves.

But here’s the thing – the 2023 conforming loan limit is $726,200. And the high-cost loan limits (for expensive areas of the country) are a whopping $1,089,300!

In other words, most folks don’t need a jumbo loan anyway.

If you do, expect higher down payment requirements, higher minimum FICOs, and larger reserve requirements.

After all, you’re asking to borrow a lot of money, so you better be good for it.

This might entail a minimum down payment of 10-20%, FICO scores of 680 and up, lower DTI ratios, and several months of reserves in the bank.

If You Have to Ask What Is the Easiest Type of Mortgage to Get…

Those who read the sections above should realize it’s fairly easy to qualify for a mortgage.

Credit score requirements are super low across all loan types. And DTI ratios are also very forgiving in most cases.

The same goes for employment history and asset/reserve requirements.

And the fact that you can often employ gift funds or a co-borrower to help qualify is the icing on the cake.

But if you have to ask the question, you may want to reassess your decision to rent vs. buy.

There’s a reason all these minimum requirements are in place. And there’s a reason why it takes around a month to get a mortgage.

It’s a big deal and the decision shouldn’t be taken lightly. Additionally, those who are adequately prepared should qualify for the lowest mortgage rates with the best terms.

So instead of focusing on easy, focus instead on how to qualify for the best rate.