If you meet the income limits for a government-backed mortgage, such as an FHA loan or VA loan, the underwriting process will primarily focus on verifying that you have a stable income source. This ensures you can make consistent mortgage payments over the life of the loan. The underwriter will carefully examine your financial documents, including pay stubs, tax returns, and bank statements, to assess your income stability and ability to cover your mortgage obligations.

One of the key components of underwriting is your credit report. The underwriter will assess your credit score and payment history, particularly over the past 12 months. A clean payment history is essential, as it shows your ability to manage debt responsibly. Late payments or accounts in collections may raise concerns, but the impact can vary depending on the type of loan, whether it’s an FHA loan, VA loan, or a modern mortgage.

For FHA loans, past delinquencies may not automatically disqualify you, but the lender will evaluate the circumstances behind them. For instance, medical issues or temporary financial hardships may be considered when reviewing your application. Lenders may ask for a letter of explanation to accompany your application.