The number of overdue payments allowed before applying for a mortgage varies by lender and loan type but generally ranges from 1 to 3 late payments in the past 12 months. Most conventional lenders, such as those adhering to Fannie Mae or Freddie Mac guidelines, permit up to 1-2 30-day delinquent payments within the past year if overall creditworthiness is strong. Government-backed loans like FHA mortgages may allow slightly more leniency but still require explanations for minor late payments.

Lenders assess overdue payments through credit reports and underwriting criteria to gauge a borrower’s risk of default. A single 30-day late payment typically has minimal impact if the borrower has stable income and a good credit score. However, multiple late payments signal financial stress, raising concerns about repayment capacity. For example, Fannie Mae’s 2023 Selling Guide permits up to one 30-day late payment in the past 12 months and no more than two 60-day delinquencies in the past 24 months for a conventional loan. The Consumer Financial Protection Bureau (CFPB) data shows that 75% of mortgage denials in 2022 were due to credit score issues or recent delinquencies, highlighting the importance of maintaining timely payments. Lenders also consider the reason for delinquency; medical emergencies or job loss may warrant reconsideration. Ultimately, while minor late payments may not immediately disqualify a borrower, they require thorough documentation and may lead to higher interest rates or loan terms.