: This is your monthly debt payments divided by your gross monthly income. Lenders generally prefer a DTI of 43% or lower .
: While 20% is the standard to avoid Private Mortgage Insurance (PMI) , many programs allow much less: Conventional Loans : As low as 3% for first-time buyers. FHA Loans : 3.5% with a 580+ credit score. VA/USDA Loans : Often 0% down for eligible borrowers.
Buying a home in 2026 requires a mix of financial readiness, specific documentation, and a team of professionals to guide you through the process. While requirements vary by loan type, lenders generally evaluate the "4 C’s": (ability to repay), Capital (money for down payments), Credit (history of repayment), and Collateral (the home's value) . 1. Financial Prerequisites