Mortgage Income Requirements | How to Qualify 2025

What is the minimum income required to qualify for a home loan?

Home buyers need to meet certain standards to get a home loan, but contrary to popular belief, there isn't a minimum income required for mortgages. 

Instead of focusing on a set minimum salary for a mortgage, lenders evaluate whether you earn enough to qualify for the requested loan amount. This includes ensuring your income is consistent and comes from an acceptable source.

And while there’s no minimum income required for mortgages, lenders will review factors like credit scores, employment history, and other qualifications to check if you meet the mortgage income requirements. Here's how to determine if your income will qualify for a mortgage.

In this article (Skip to...)

• Mortgage income requirements
• Types of qualifying income
• Other income requirements
• Calculating required income
• Tips to qualify for a mortgage
• FAQ

Income requirements to qualify for a mortgage in 2025

As we mentioned above, there's no true minimum income required for a mortgage loan. Lenders just want to ensure that you meet the criteria to afford the mortgage.

Income requirements for a mortgage:

• You need a reasonable debt-to-income ratio (DTI) — usually 43% or less
• You must have been earning a steady income for at least two years
• Your income must be expected to continue for at least three years

Outside of those basic criteria, income requirements for a home loan are flexible. Most types of income can qualify — from standard salaries to commission, investment, self-employment, bonus, and RSU income.

What types of income qualify for a mortgage?

Mortgage lenders can approve borrowers with all sorts of income, such as salaried employees, hourly wage earners, freelancers, business owners, and those who receive Social Security payments. But any source of income must meet certain guidelines to qualify on a mortgage application.

W2 income

Employees can use salaries, hourly wages, commissions, overtime, bonuses, or restricted stock units for mortgage qualification. Provide recent paycheck stubs, W-2s, and tax returns for the past two years. Income should remain steady over this period.

To use variable income like commissions or bonuses, you’ll need proof of consistency for at least two to three years.

Self-employed income

Getting a mortgage as a self-employed person — which includes independent contractors, freelancers, gig workers, and business owners — is a bit trickier. But it's not impossible by any means.

Self-employed borrowers need two years of tax returns. Lenders average your income over this period, and a small decrease is acceptable. Too many business deductions can lower your qualifying income, but some, like mileage or home office use, can be added back.

Alternative income sources

Here's what you need to know when using other sources of income to qualify for a mortgage loan:

• Dividend income: This income must be regular, and you must show a two-year history of receiving dividends
• Retirement income: Income must continue for at least three years post-closing
• Social Security income: This income must continue for at least three years post-closing
• Alimony and child support: You must have received regular payments for at least six to 12 months prior to getting the mortgage, and support payments must continue for at least three years post-closing. You’ll need to provide a copy of a divorce decree and other court orders

Other income requirements for a mortgage loan

The amount of money you earn isn't the only thing that matters when buying a home. While your income to qualify for a mortgage is crucial, you should be mindful of other factors lenders take into consideration when reviewing your application:

• Credit score: Mortgage programs have minimum credit score requirements: 620 for conventional loans, 580 for FHA, 580-620 for VA, and 640 for USDA loans.
• Credit history: A clean credit history is crucial. Most programs allow no more than one 30-day late payment in the past 12 months and require a waiting period after foreclosure or bankruptcy (2-7 years).
• Down payment: A larger down payment increases your purchasing power.
• Existing debt load: High debt reduces affordability. Paying down loans and credit cards can help.
• Assets/cash reserves: Sufficient savings for the down payment, closing costs, and reserves (2-6 months of mortgage payments) are required.

How to calculate your required income for a mortgage

A helpful tool for estimating the income required for a mortgage is a home affordability calculator. This tool considers the overall cost of homeownership, including the principal, interest rate, property taxes, and homeowners insurance — commonly known as PITI.

PITI stands for:

• (P) Principal: The portion of the loan’s balance repaid each month
• (I) Interest: The cost the lender charges for the loan
• (T) Taxes: Local property taxes
• (I) Insurance: Homeowners insurance, plus private mortgage insurance (PMI) if required

By entering your purchase price, down payment, and loan term into the calculator, you can estimate monthly payments and see the income requirements for different home prices.

How to improve your income to qualify for a mortgage

If what you make doesn’t meet the mortgage income requirements, here are some strategies to increase your chances of approval:

1. Increase your earnings: Consider asking for a raise, working overtime, or exploring side gigs to boost your income.

2. Lower your debt: Reducing debt (e.g., credit cards, student loans) can improve your DTI ratio, allowing you to qualify for a larger mortgage.

3. Save for a larger down payment: The more you can put down, the less you need to borrow, which can improve your eligibility.

4. Improve your credit score: A higher credit score can improve your loan terms and increase the loan amount you qualify for.

5. Refinance your current home: If you already own a home, refinancing to lower your current payments can free up more income for a new mortgage.

Everyone’s financial situation is different, so it’s always a good idea to consult with a mortgage expert to determine the best path forward.

FAQ: Income requirements for a mortgage loan

Do you meet income requirements for a mortgage?

Numerous factors determine whether you'll qualify for a home loan. Your mortgage lender will look closely at your credit history, your debts, cash on hand, and income to qualify you for a mortgage.

Mortgage approval isn’t one-size-fits-all, so it’s also important to get preapproved for a loan before shopping for a new home. This way, you’ll what is the minimum income to qualify for a home loan with your current financial situation. You can then search for real estate within that price range.