Each lending institution has its own criteria for qualifying borrowers. Common requirements are that borrowers be at least 18 years old, legal residents of the U.S. and not in foreclosure or bankruptcy. Most lenders look for a minimum credit score in the mid-600s and a debt-to-income (DTI) ratio below 45 percent.
An excellent credit score and low DTI will get you the best interest rate and may qualify you for a larger loan. Even if you have bad credit, you may find a lender that's willing to extend you a loan, but you'll pay higher interest rates. If you're in this scenario, you may want to apply with a co-signer who has good credit to improve your chances of being approved.