Rarely is there a one-size-fits-all answer in the mortgage business. When it comes to getting approved for a mortgage with late payments on your credit report, there are a few critical factors you need to know.

So very quickly, what is credit? Our credit score boils down to how reliable you are as a borrower repaying your debts. Lenders use this information to weigh the risk of a borrower’s profile, along with income, assets, etc.

In a perfect world, we wouldn’t want to have any late payments on our credit report. However, we understand things can happen. When it comes to getting approved, consumer debt late payments are much more palatable for the automated underwriting system (AUS) to approve when compared to late mortgage payments.

Conventional and VA loans have harder requirements for qualified mortgages with 1 30-day late payment over the last 12 months, and no 60-day late payments are allowed in the past year.

FHA loans are a little easier though as you can miss 2x30-day late or 2 missed payments for 30 days each in a 1-year span. Additionally, you can miss 1 late payment over 60 days which VA and conventional loans do not allow at all.

In the end, it really depends on your profile on whether you will be able to get a mortgage with late payments, but it helps if you don’t have any mortgage debts, a higher credit score, and more cash in the bank certainly will help you along your journey to owning a home.