Mortgage Prequalification Calculator

Check if you prequalify for Conventional, FHA, VA, and USDA mortgages simultaneously. See max loan amounts for each program, rate estimates by credit score, full DTI analysis, and a personalized action plan to improve your qualification.

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Prequalification Summary
LIKELY QUALIFIES
Conventional
Max loan: $448,931
Rate: ~7.3%
LIKELY QUALIFIES
FHA
Max loan: $495,013
Rate: ~7.0%
CONDITIONAL
VA
Max loan: $423,349
Rate: ~6.8%
CONDITIONAL
USDA
Max loan: $362,617
Rate: ~7.0%
Monthly Income
$7,917
Down Payment
$40,000 (10.0%)
Loan Amount
$360,000
LTV Ratio
90.0%

Side-by-side program comparison for a $400,000 home.

Conventional
Qualifies
Min Down: 3% ($12,000)
Min Credit: 620
Max DTI: 45%
Rate: 7.3%
Max Loan: $448,931
~$150/mo (until 80% LTV)
FHA
Qualifies
Min Down: 3.5% ($14,000)
Min Credit: 580
Max DTI: 50%
Rate: 7.0%
Max Loan: $495,013
~$165/mo MIP + 1.75% upfront (life of loan if <10% down)
VA
Conditional
Min Down: 0% ($0)
Min Credit: 580
Max DTI: 41%
Rate: 6.8%
Max Loan: $423,349
None (2.3% funding fee applies)
DTI 44.8% exceeds max 41%
Must have qualifying military service / VA certificate of eligibility
USDA
Conditional
Min Down: 0% ($0)
Min Credit: 640
Max DTI: 41%
Rate: 7.0%
Max Loan: $362,617
0.35%/yr annual fee + 1% upfront guarantee fee
DTI 49.8% exceeds max 41%
Property must be in eligible rural or suburban USDA area
Income limits apply (typically 115% of area median income)

Complete requirements matrix for all programs.

ProgramMin CreditMin DownMax DTIPMI/MIPReservesMax LoanStatus
Conventional620 3% 45%~$150/mo (until 80% LTV)2 months PITI$448,931YES
FHA580 3.5% 50%~$165/mo MIP + 1.75% upfront (life of loan if <10% down)2 months PITI$495,013YES
VA580 0% 41%None (2.3% funding fee applies)2 months PITI$423,349NO
USDA640 0% 41%0.35%/yr annual fee + 1% upfront guarantee fee2 months PITI$362,617NO

How to Use This Prequalification Calculator

Enter your financial profile to instantly see whether you prequalify for each major loan program.

Quick Calculator

Enter your Annual Gross Income, Monthly Debts (all minimum payments), Credit Score Range, Down Payment, Home Price, and Base Interest Rate. The calculator simultaneously checks all four major programs — Conventional, FHA, VA, and USDA — showing whether you qualify, the estimated rate, and maximum loan for each.

Advanced — Program Comparison, What to Improve, DTI Check

The Program Comparison tab shows all four programs side-by-side with minimum requirements, rates, PMI costs, and max loan amounts. The What You Can Improve tab identifies specific actions — like boosting your credit score or reducing debt — with the exact financial impact of each. The DTI Check tab breaks down your front-end and back-end ratios for each program.

Professional — Full Qualification Matrix, Rate Estimates, Action Plan

The Full Qualification Matrix shows every requirement for every program in one table with pass/fail status for your profile. Rate Estimates shows a complete credit score tier table so you can see exactly what rate improvement each credit tier would earn. The Action Plan provides a numbered, prioritized list of steps to maximize your qualification profile.

How Prequalification Is Calculated

Max Monthly Housing = (Monthly Gross Income × Max DTI%) − Monthly Debts

Max Loan Amount = Max Monthly Housing × Mortgage Factor
(Mortgage factor at 7%, 30-yr = ~150.3 per $1,000 payment)

DTI (Back-End) = (Housing Payment + All Monthly Debts) / Monthly Gross Income

Example — $95,000/yr income, $500/mo debts, 720 credit, 43% DTI limit:
Monthly income = $95,000 / 12 = $7,917
Max housing = ($7,917 × 43%) − $500 = $3,404 − $500 = $2,904/mo
At 7.0% for 30 years: Max loan ≈ $436,000
With $40,000 down: Max home ≈ $476,000

Example: James Compares All Programs

James: $80,000 income, 660 credit, $500 debts, $20,000 down — Seattle, WA

James isn't sure which loan program to use. He enters his profile to check all programs at once.

Annual Income$80,000
Monthly Debts$500
Credit Score660
Down Payment$20,000
Target Price$380,000
Conventional ResultQualifies — but rate is 7.75% due to 660 score
FHA ResultQualifies — rate 7.25%, but MIP adds $175/mo
VA ResultConditional — needs VA eligibility (military service)
USDA ResultNo — 660 credit below 640 USDA minimum for Seattle area

James's best options are Conventional or FHA. FHA has a slightly lower rate but adds lifelong MIP. If James raises his credit to 680, his conventional rate drops to 7.25% — matching FHA without the permanent MIP. The Action Plan recommends targeting 680+ credit as the top priority (fastest path to savings).

Frequently Asked Questions

Mortgage prequalification is a preliminary estimate of how much you may be able to borrow based on your income, debts, credit score range, and down payment. It uses self-reported information and does not require a hard credit inquiry or document verification. Prequalification helps you understand your budget before house hunting, but sellers and listing agents prefer a preapproval letter — a stronger step that involves verified documents and a hard credit pull.
Minimum scores by program: Conventional (620, best rates at 740+), FHA (580 with 3.5% down or 500 with 10% down), VA (no official minimum but most lenders require 580–620), USDA (typically 640 for automated approval). A higher score dramatically improves your rate — the difference between 620 and 760 is often 1.25% or more, translating to hundreds per month on a large loan.
The max loan is calculated by: (1) Find max monthly payment = (Monthly Income × DTI limit) − Monthly Debts; (2) Reverse-calculate the loan that produces that payment at your interest rate and term. For a $2,904 max payment at 7.0% for 30 years, the max loan is about $436,000. Adding your down payment gives your max home price. This is a simplified estimate — actual lender decisions factor in assets, employment history, and other details.
Prequalification = quick estimate, self-reported data, no hard credit pull, no documents. Takes 5–10 minutes. Preapproval = full application with income documents (pay stubs, W-2s, tax returns), bank statements, employment verification, and a hard credit inquiry. A preapproval letter (valid 60–90 days) shows sellers you're serious and financially vetted. Many sellers won't accept offers without one. Always get preapproved before making offers.
Best by situation: VA = best for eligible veterans (no PMI, no minimum down, lowest rates). USDA = best for rural buyers who meet income limits (no down payment). FHA = best for 580+ credit or limited savings (3.5% down), though lifetime MIP adds cost. Conventional = best for buyers with 620+ credit, especially those with 20%+ down (no PMI) or building toward 80% LTV. Compare all programs using this calculator — the ideal program depends on your unique combination of credit, cash, income, and property location.

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Sources & References