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Minimum Mortgage Requirements in 2022

Knowing the minimum mortgage requirements can help you choose the best loan program for you if you’re planning to buy a home. Higher loan limits in 2022 will give more borrowing power to homebuyers who are qualifying for a mortgage. Some changes are ahead, however, as lenders adjust to the changing market conditions stemming from rising interest rates and home prices.

2022 Minimum Mortgage Requirements | LendingTree

2022 minimum mortgage requirements by loan type

Mortgage rates and home prices are expected to rise in 2022, but mortgage requirements will remain largely the same. One big change for 2022 homebuyers: Conforming loan limits will rise by the biggest year-over-year dollar amount on record since 1970.

Below is a snapshot of the new loan limits, along with the basic mortgage requirements:

Minimum mortgage requirements by loan type

Down payment3%3.5% with 580 score 10% with 500-579 score0%0%
Credit score620580 with 3.5% down 500-579 with 10% downNo minimum, but 620 is lender standardNo minimum, but 640 is lender standard
Mortgage insurance or similar feesPMI 0.15% to 1.95%UFMIP 1.75% Annual MIP 0.45% to 1.05%0.5% to 3.6% VA funding feeUpfront guarantee fee 1% Annual guarantee fee 0.35%
DTI ratio45% back-end ratio*31% front-end DTI ratio* 43% back-end DTI ratio *41% back-end ratio*29% front-end ratio* 41% back-end ratio*
Loan limits for single-family home$647,200 in low-cost areas$420,680 in low-cost areasN/AN/A

*Some exceptions may be made for borrowers with higher DTI ratios who also have ample cash reserves, residual income or other mitigating circumstances

Conventional mortgage requirements

Conventional loans, the most popular mortgage option, aren’t guaranteed by any government agency. The government-sponsored enterprises Fannie Mae and Freddie Mac set more stringent conventional home loan requirements than government-backed mortgages.

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