To buy a second-hand house with a mortgage in the United States, eligibility depends on creditworthiness, down payment size, debt-to-income ratio, and mortgage type. Lenders typically require a credit score of at least 580 for conventional loans, 580 for FHA loans, or 620 for VA loans. A down payment of 3.5% to 20% is needed, with lower down payments requiring mortgage insurance. Debt-to-income ratios should not exceed 43% for conforming loans or 50% for FHA loans. Steps include pre-approval, house hunting, securing a mortgage, and closing.

The ability to purchase a second-hand home with a mortgage hinges on meeting lenders' financial criteria. A 2023 Federal Reserve report found that 66% of U.S. consumers cite credit score and down payment requirements as primary barriers to homeownership. For example, a borrower with a credit score below 580 may qualify only for higher-cost loans or be denied entirely. The Consumer Financial Protection Bureau (CFPB) notes that 75% of mortgages in 2023 required a credit score above 620, with FHA loans accepting lower scores but imposing mortgage insurance fees. Down payment requirements vary: conventional loans demand 5-20%, while FHA loans allow 3.5% with a 580+ score. Lenders also assess debt-to-income ratios; exceeding 43% may result in loan denial. Recent data from Fannie Mae shows that 58% of approved mortgages in 2023 had down payments below 10%, relying on government-backed programs. Securing pre-approval is critical, as 89% of sellers prefer buyers with pre-qualified financing. Closing costs, typically 2-5% of the loan amount, add to upfront expenses. In summary, while purchasing a second-hand home with a mortgage is feasible, adherence to financial thresholds and strategic planning are essential.