Requirements include: A debt-to-income ratio of 31% or less (before future housing costs are factored in) No delinquent federal debts. This includes student loans, taxes, and even child support. Minimum down payment of 3.5% of the home’s value. Credit score of 500 or above.

Borrowers need to have a minimum credit score of about 620 in order to qualify—the highest minimum score of all mortgage products—and have a debt-to-income ratio of 43% or less. Borrowers also need to be able to afford a down payment of 20% or more in order to avoid mortgage insurance.