FHA vs VA vs Conventional: Am I Ready for a Mortgage?
The credit, DTI, down payment, and reserves each loan program actually requires — so you can tell in 60 seconds which one you're ready for.
The short answer
"Am I ready for a mortgage?" comes down to four numbers: your credit score, your debt-to-income (DTI) ratio, your down payment percentage, and your reserves (months of PITI in the bank). Each loan program draws the line in a different place.
Side-by-side requirements
| Program | FHA | Conventional | VA |
|---|---|---|---|
| Min credit score | 580 (500-579 = 10% down) | 620 (740+ for best rates) | No federal minimum (most lenders 580-620) |
| Min down payment | 3.5% | 3% (Conventional 97) or 5% | 0% |
| Max DTI | 43% (up to 50% w/ compensating factors) | 45% (up to 50% w/ AUS approval) | 41% (residual income test can override) |
| Reserves | Not required (1-2 mo. recommended) | 2 months PITI typical | Not required for primary residence |
| Mortgage insurance | Upfront 1.75% + monthly MIP for life of loan (unless 10% down) | PMI until 20% equity; then drops off | None. One-time VA funding fee (waived for disability) |
| Best for | First-time buyers, thinner credit, higher DTI | Stronger credit, plans to reach 20% equity | Eligible active-duty, veterans, and surviving spouses |
Which readiness band are you in?
Ready today
FICO 680+, DTI under 40%, 5%+ saved, 12+ months on the job. You'll clear FHA and likely Conventional.
Ready in 30-90 days
FICO 620-679 or DTI 40-45%. Usually one credit-utilization fix or one debt paydown gets you to green.
6-12 month plan
FICO under 620, DTI over 45%, or less than 3% saved. A structured action plan gets most buyers there.
How to move up a band fast
- Credit utilization < 10%. The single fastest score-mover. Paying cards down before the statement cuts can lift FICO 20-40 points in a cycle.
- Kill the smallest recurring debt. Every $100/mo of payment removed adds roughly $15,000-$18,000 in buying power.
- Season your down payment. Underwriters want funds in one account 60+ days ("sourced and seasoned"). Consolidate now if you have gift funds coming.
- Don't open new credit within 90 days. New tradelines drop score and trigger extra underwriter review.
See exactly which program you're ready for
The Readiness Scorecard runs your numbers against FHA, Conventional, VA, and USDA guidelines and shows the specific fixes to move up a band. Free, 60 seconds, no credit pull.