# What Do You Need to Buy a House? (2026 Buyer's Checklist) By Opendoor Editorial Team | 2026-05-18 To buy a house in the U.S. in 2026 you need eight things: a qualifying credit score, stable income with documented employment, cash for a down payment, cash for closing costs, a debt-to-income ratio under your loan limit, financial documentation, a mortgage pre-approval, and a team to close the deal (agent, inspector, lender, title company). The list looks long, but most people already have several of these in place. This article walks through every requirement, what numbers actually qualify in 2026, and a few Opendoor-specific options that change what you need to bring. ## The 8 Things You Need to Buy a House | # | Requirement | What it means in 2026 | | --- | --- | --- | | 1 | Credit score | 620+ for conventional, 580+ for FHA, 500+ for FHA with 10% down | | 2 | Income & employment | Typically 2 years of stable, documented income | | 3 | Down payment | 3%–20% of purchase price (0% for VA/USDA) | | 4 | Closing costs | 2%–5% of the loan amount | | 5 | Debt-to-income ratio | Under 43% in most cases (some FHA loans allow up to 50%) | | 6 | Financial documents | Pay stubs, tax returns, bank statements, ID | | 7 | Mortgage pre-approval | Letter from a lender confirming what you can borrow | | 8 | A buying team | Real estate agent, home inspector, appraiser, title company | If you're paying cash, skip items 1, 5, 6, and 7. Otherwise, you'll need all eight. For a step-by-step walkthrough of the buying process from offer to closing, see our [step-by-step guide to buying a house](/articles/how-to-buy-a-house). ## 1. A Qualifying Credit Score You need a credit score of at least 580 to qualify for most mortgage programs — and 620 to qualify for conventional financing. Higher scores get you better interest rates. | Loan type | Minimum credit score | Typical down payment | | --- | --- | --- | | Conventional | 620 | 3%–20% | | FHA | 580 (or 500 with 10% down) | 3.5% | | VA | 580–620 (lender-dependent) | 0% | | USDA | 640 | 0% | A 1-point difference doesn't change your rate, but a 50-point difference can change your interest rate by 0.5%–1.5% — which on a 30-year, $400,000 loan adds up to $50,000–$150,000. If your score is below 580, see: [How to Buy a House with Bad Credit](/articles/how-to-buy-a-house-with-bad-credit). For a full breakdown of how credit affects mortgage approval and pricing, read: [What Credit Score Do You Need to Buy a House?](/articles/credit-score-to-buy-a-house) ## 2. Stable Income and Employment History Most lenders want to see 2 years of consistent, documented income before they'll approve you for a mortgage. Self-employed buyers are held to the same 2-year standard, with profit-and-loss statements and business tax returns in place of W-2s. What lenders look at: - **Employment continuity** — same employer or same industry for 2+ years - **Income consistency** — pay should be regular and predictable, not erratic - **Income type** — W-2 income is easiest; bonus, commission, and self-employed income require more documentation - **Job-change tolerance** — changing jobs is fine if you're in the same field and your pay didn't drop Recent graduates can sometimes use degree completion as a substitute for the 2-year history, especially if you're working in your field of study. ## 3. Cash for a Down Payment You need somewhere between 0% and 20% of the home's price in cash for a down payment. The exact amount depends on your loan type. Opendoor accepts every major loan type, so the down payment you bring depends entirely on what you qualify for. | Loan type | Accepted by Opendoor? | Minimum down payment | Notes | | --- | --- | --- | --- | | Conventional | Yes | 3% | PMI required under 20% down; credit 620+ | | FHA | Yes | 3.5% | MIP required; 90-day flip rule applies (seller must own home 91+ days) | | VA | Yes | 0% | Eligible service members and veterans | | USDA | Yes | 0% | Rural and qualifying low-income areas | | Cash | Yes | N/A | Can close in as few as 14 days | The math on a $400,000 home: - 3% conventional down: $12,000 - 3.5% FHA down: $14,000 - 5% conventional: $20,000 - 10% down: $40,000 - 20% down: $80,000 (no PMI required) If you don't have a 20% down payment, you'll pay private mortgage insurance (PMI) on a conventional loan, or mortgage insurance premium (MIP) on an FHA loan. PMI typically runs $30–$70 per month per $100,000 borrowed and falls off once you reach 20% equity. Short on cash? You may be able to skip the down payment entirely: [How to Buy a House with No Money Down](/articles/how-to-buy-a-house-with-no-money-down). ## 4. Cash for Closing Costs Closing costs typically run 2%–5% of your loan amount and cover the lender, title company, insurance, and recording fees. These are separate from your down payment. On a $400,000 home with a $380,000 loan, expect closing costs in the range of **$7,600 to $19,000**. What's typically included: - Lender origination fees - Appraisal fee ($500–$700) - Credit report fee - Title search and title insurance - Recording fees and transfer taxes - Homeowners insurance (first year, prepaid) - Property tax escrow (2–6 months prepaid) - Prepaid mortgage interest A few of these — like prepaid taxes and insurance — aren't really fees, they're just timing of payments you'd make anyway. The "real" lender and title costs are usually closer to 1.5%–3% of the loan. **Earnest money** is a separate deposit, typically 1%–3% of the purchase price, paid when your offer is accepted. It's not an additional cost — it's applied to your down payment at closing. | Purchase price | Typical earnest money (1–3%) | | --- | --- | | $200,000 | $2,000–$6,000 | | $300,000 | $3,000–$9,000 | | $350,000 | $3,500–$10,500 | | $500,000 | $5,000–$15,000 | | $750,000 | $7,500–$22,500 | For a full cash breakdown by home price, see: [How Much Money Do You Need to Buy a House?](/articles/how-much-money-do-you-need-to-buy-a-house) ## 5. A Debt-to-Income Ratio Under the Loan Limit Your debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes to debt payments — including your future mortgage. Most lenders cap this at 43%, though it varies by loan type. | Loan type | Maximum DTI | | --- | --- | | Conventional | 43%–50% (depending on compensating factors) | | FHA | 43%–57% (with strong credit) | | VA | 41% (suggested) | | USDA | 41% | How to calculate yours: 1. Add up all monthly debt: car payment, student loans, credit card minimums, child support 2. Add your estimated future mortgage payment (principal, interest, taxes, insurance, HOA) 3. Divide by your gross monthly income (before taxes) 4. That percentage is your DTI Example: $1,500 car + student loans + $2,500 future mortgage = $4,000 in debt against $9,000 gross monthly income = 44.4% DTI. That's over the conventional 43% line but might still qualify under FHA with compensating factors like savings reserves. If your DTI is too high, your two options are: pay down debt (preferred) or buy a less expensive home. ## 6. Financial Documents Mortgage lenders verify everything. You'll be asked for a stack of paperwork — gather it before applying so the process moves faster. For most W-2 employees, lenders ask for: - The **two most recent pay stubs** showing year-to-date earnings - Your **last two years of federal tax returns** with all schedules - The **last 2–3 months of bank statements** (all accounts you'll use for down payment or reserves) - **W-2 forms from the last two years** - **Government-issued photo ID** (driver's license or passport) Self-employed buyers need: - Business and personal tax returns for the last 2 years - A profit-and-loss statement, often year-to-date - Business bank statements - Any 1099s Cash buyers need only: - **Proof of funds** dated within 30 days of offer submission - Government-issued photo ID If a family member is helping with your down payment, expect to provide a **gift letter** stating the funds are a gift, not a loan. For Opendoor's full document checklist, see [Financial documents needed to buy a home](https://help.opendoor.com/buying/financing-closing/financial-documents-needed). ## 7. Mortgage Pre-Approval A pre-approval letter from a lender tells sellers exactly how much you can borrow and is the difference between a serious offer and one that gets ignored. Most sellers won't accept offers without it. What it does: - Confirms the maximum loan amount you qualify for - Locks in (or estimates) your interest rate - Documents that the lender has reviewed your credit, income, and assets What it's not: - A loan commitment — your final approval still depends on the property and an appraisal - An interest rate guarantee — that comes with a rate lock later **Pre-qualification vs. pre-approval:** Pre-qualification is a quick estimate using self-reported numbers. Pre-approval is a real credit pull and document review. Agents and sellers take pre-approval seriously; pre-qualification is mostly informational. Shop at least 3 lenders before locking in. A 0.5% rate difference on a $400,000 loan adds up to roughly $40,000 over 30 years. For the full mortgage application walkthrough — including what underwriters look at and how to avoid getting denied — read: [How to Get a Mortgage](/articles/how-to-get-a-mortgage). For a primer on how mortgages work in the first place, see: [What Is a Mortgage?](/articles/what-is-a-mortgage) ## 8. A Buying Team Beyond yourself and the lender, you'll work with several professionals during the purchase: - **Real estate agent** — represents you in the transaction. Under 2024 NAR rules, you'll sign a written buyer representation agreement before tours that spells out their compensation. - **Home inspector** — independent third party who evaluates the home's condition during your inspection period (typically 7–14 days) - **Appraiser** — ordered by the lender to confirm the home is worth at least what you're paying - **Title company / escrow officer** — handles the title search, title insurance, and closing paperwork Each is typically required, though there's flexibility. For Opendoor homes specifically, you can [tour properties without signing an agent agreement](https://help.opendoor.com/buying/finding-touring/touring-without-agent-agreement) by using a self-guided tour. And [Opendoor Checkout](https://help.opendoor.com/buying/making-an-offer/opendoor-checkout) — available in 23 states — lets eligible buyers purchase select Opendoor homes with no buyer's agent, at 1% below the list price. Whether you should use a buyer's agent is its own decision: [Do You Need a Realtor to Buy a House?](/articles/do-you-need-a-realtor-to-buy-a-house). ## How Much Cash You Actually Need at Closing On a $400,000 home, here's a realistic total cash requirement: | Loan type | Down payment | Closing costs (3%) | Earnest money (already counted) | Total cash needed | | --- | --- | --- | --- | --- | | Conventional 3% | $12,000 | $11,400 | — | $23,400 | | FHA 3.5% | $14,000 | $11,400 | — | $25,400 | | Conventional 10% | $40,000 | $11,400 | — | $51,400 | | Conventional 20% | $80,000 | $11,400 | — | $91,400 | | VA 0% | $0 | $11,400 | — | $11,400 | Add a few thousand in moving costs and your first few months of homeowner expenses, and you can see why most first-time buyers target a cash reserve of $25,000–$50,000. For ranges across more price points: [How Much Money Do You Need to Buy a House?](/articles/how-much-money-do-you-need-to-buy-a-house) **Frequently asked questions** --- *Originally published at [https://www.opendoor.com/articles/what-do-you-need-to-buy-a-house](https://www.opendoor.com/articles/what-do-you-need-to-buy-a-house)*