Predictika · Mortgage pre-qualification: FHA and conventional purchase loans

An AI loan assistant's pre-qualification, checked before the letter goes out

An AI loan assistant prepares a pre-qualification for a fictional home buyer: loan program (FHA or conventional), county, credit score, income, debts, price, down payment and verified cash, and the monthly payment and debt-to-income it tells the borrower. Before the letter is issued, the assistant sends the application to Predictika, which checks it against a model of the program, loan limit, debt and cash rules, compares the payment and debt-to-income the assistant states with the computed ones, and returns a verdict, every reason and the payment breakdown. This is an illustrative model built from published 2026 FHFA and HUD limits and simplified guidelines; it is not a lender's underwriting rule set.

Scope: an FHA or conventional home purchase pre-qualification: program minimums, loan-to-value, 2026 county loan limits, debt-to-income, cash at closing, job history and the payment the assistant states. See everything this validator covers

This validator models the pre-qualification rules for a single-property FHA or conventional purchase loan, not just the scenarios shown below.

  • Program and score — the minimum credit score for FHA (500) and conventional (620), FHA for a primary residence only, and maximum loan-to-value by program, score and occupancy.
  • Loan limits — 2026 conforming and FHA limits for a typical county, a mid-cost metro and a high-cost county, compared with the base loan, not the purchase price.
  • Affordability — principal and interest, property tax, insurance, mortgage insurance and HOA dues; debt-to-income with an approval band and a hard cap for each program, and the FHA housing ratio.
  • Closing and history — cash for the down payment, closing costs and investment-property reserves, the 97 percent first-time-buyer rule, and a short time at the current job.
  • The stated figures — the monthly payment and debt-to-income the assistant states are compared with the validator's own.

Any purchase application that touches these rules is in scope — not only the scenarios pictured here. Not covered: VA or USDA loans, jumbo pricing, a lender's own overlays, credit underwriting judgment, and the rate itself. Limits, rates and thresholds are illustrative.

The AI loan assistantBuilds the pre-qualification, says what the monthly payment and debt-to-income are, then sends it to the validator before the letter is issued.
Predictika validatorChecks every rule at once and returns the verdict, each finding, and the computed figures.

7 scenarios in 3 groups · each group runs from the agent’s first attempt to the outcome · click one to switch

What the agent proposes

The AI sales agent says

Proposing agent: AI sales agent (scripted)

Before sending, the agent must call Recorded run

Predictika validator


      

        
        
        
      

      
Waiting for the call.

      
    

  

  
  

    
Where rules-based loan tools get it wrong
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Our assessment of what a typical rules-based CPQ (product rules, price rules and validation rules, as in Salesforce CPQ) does with the same cases. It is a judgment about effort and reliability, not a claim that nothing can be built.

    
What the validator caughtTypical rules-based toolPredictika
Stated payment and debt-to-income that must match the computed onesOnly with workarounds
A validation rule can compare a stated figure with a calculated one only if the stated figure is a field on the application, which it rarely is.		The stated payment and debt-to-income travel with the application and are compared with the computed figures on every call.
FHA and conventional rules applied togetherOnly with care
Minimum score, loan-to-value cap, occupancy and debt limits all differ by program and by score band. Each is a rule, but they have to be kept in step, and a change to one program is easy to miss in the other.		Both programs are rules in one model, and every rule is checked on every call.
County loan limit that depends on program and countyOnly with care
A table of limits by county and program can be built, but it has to be refreshed every year and compared with the base loan, not the purchase price.		The limit is chosen from program and county and compared with the base loan on every call.
Mortgage insurance by loan-to-value band, score and programOnly with care
The grid is a lookup, but it feeds the payment, and the payment feeds debt-to-income, so a change in one cell changes the verdict downstream.		Insurance, payment and debt-to-income are computed together, so a verdict always reflects the same numbers.
Debt-to-income that sends a loan to a person instead of blocking itOnly with care
Two thresholds per program (approve with review, then block) are easy to build once, and easy to leave out of step when limits change.		The review band and the hard cap are separate outcomes: 47.66 percent goes to approval, 53 percent is blocked.
Every reason a request failsOnly with care
Many tools return the first failing rule, so a borrower fixes one problem and meets the next.		Every finding comes back in one answer, with the numbers.

  

  

    
What this validator catches: findings from its test cases
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Every rule is checked on every call, in any order the choices arrive; one problem never hides another. Blocking findings stop the pre-qualification letter; approval findings need a person to sign off; everything else is computed.

    
1Conventional loans above 95 percent LTV (LTV 97.0 percent) require at least one first-time home buyer.
2A 605 credit score is below the Conventional minimum (FHA 500 / conventional 620).
3Conventional loan-to-value is 90.0 percent - over the Conventional maximum for this score and occupancy (FHA 96.5 or 90 under 580; conventional 97 primary / 90 second home / 85 investment).
4The $850,000 loan exceeds the Conventional limit of $832,750 in Typical US county (baseline limits).
5FHA loan-to-value is 96.5 percent - over the FHA maximum for this score and occupancy (FHA 96.5 or 90 under 580; conventional 97 primary / 90 second home / 85 investment).
6FHA loans are for a primary residence only; this is a SecondHome.
7The $579,000 loan exceeds the FHA limit of $541,287 in Typical US county (baseline limits).
8Debt-to-income is 47.66 percent - above the standard Conventional limit (FHA 43 / conventional 45); needs automated-underwriting approval with compensating factors.
9Debt-to-income is 49.92 percent - above the standard FHA limit (FHA 43 / conventional 45); needs automated-underwriting approval with compensating factors.
10The housing payment is 33.26 percent of income - above the FHA 31 percent guideline.
11Debt-to-income is 52.78 percent - over the Conventional cap (FHA 57 / conventional 50).
12Cash needed at closing is $115,000 (down payment, closing costs and any required reserves); $105,000 available.
13Only 10 months at the current job - lenders want a two-year history or an explanation.
14Cash needed at closing is $126,577.26 (down payment, closing costs and any required reserves); $115,000 available.
15The agent stated a monthly payment of $2,528.28; the validator computes $3,194.94.
16The agent stated a debt-to-income of 22.34 percent; the validator computes 27.11 percent.

  

  

    
Scenarios and results
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The recorded result of the validator for each scenario on this page: the request the AI agent sent, the verdict, and every finding, in the order they appear above.

    
1. Investment property: A conventional pre-qualification for an investment property: low score, a $900,000 loan on $100,000 down, short on cash, and a payment that is only principal and interest

    
The agent's request. Pre-qualify Dana Whitfield for a conventional loan on a $1,000,000 home in a typical county: investment property, 605 credit score, $14,000 monthly income, $2,400 in monthly debts, $100,000 down and $120,000 in verified cash, 6.5 percent 30-year fixed, 10 months at the current job. The monthly payment is $5,688.63 and debt-to-income is 57.78 percent. Please issue the pre-qualification letter.

    
Verdict: Blocked.

    
    
      
  • Credit score below the program minimum. A 605 credit score is below the Conventional minimum (FHA 500 / conventional 620).
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  • Loan-to-value above the maximum. Conventional loan-to-value is 90.0 percent - over the Conventional maximum for this score and occupancy (FHA 96.5 or 90 under 580; conventional 97 primary / 90 second home / 85 investment).
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  • Loan above the county loan limit. The $900,000 loan exceeds the Conventional limit of $832,750 in Typical US county (baseline limits).
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  • Debt-to-income above the hard cap. Debt-to-income is 70.51 percent - over the Conventional cap (FHA 57 / conventional 50).
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  • Cash short of what closing requires. Cash needed at closing is $174,831.78 (down payment, closing costs and any required reserves); $120,000 available.
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  • Stated monthly payment does not match. The agent stated a monthly payment of $5,688.63; the validator computes $7,471.97.
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  • Stated debt-to-income does not match. The agent stated a debt-to-income of 57.78 percent; the validator computes 70.51 percent.
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  • Short time at the current job. Only 10 months at the current job - lenders want a two-year history or an explanation.
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2. Investment property: The agent resubmits after fixing the errors

    
The agent's request. Pre-qualify Dana Whitfield for a conventional loan on a $700,000 home in a typical county: investment property, 705 credit score, $14,000 monthly income, $1,500 in monthly debts, $175,000 down and $260,000 in verified cash, 6.5 percent 30-year fixed. The monthly payment is $4,251.71 and debt-to-income is 41.08 percent. Please issue the pre-qualification letter.

    
Verdict: Allowed.

    
    
      
  • Payment summary. $4,251.71 per month (principal and interest $3,318.37 + tax $641.67 + insurance $291.67 + mortgage insurance $0.00 + HOA $0.00); debt-to-income 41.08 percent.
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3. $850K loan and the county: A $1,000,000 home with $150,000 down in a typical county, with HOA dues

    
The agent's request. Pre-qualify Priya and Dev Raman for a conventional loan on a $1,000,000 home in a typical county: primary residence, 780 credit score, $30,000 monthly income, $800 in monthly debts, $150,000 down and $200,000 in verified cash, 6.5 percent 30-year fixed, $250 a month in HOA dues. The monthly payment is $7,097.61 and debt-to-income is 26.33 percent. Please issue the pre-qualification letter.

    
Verdict: Blocked.

    
    
      
  • Loan above the county loan limit. The $850,000 loan exceeds the Conventional limit of $832,750 in Typical US county (baseline limits).
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4. $850K loan and the county: The same loan in a high-cost county

    
The agent's request. Pre-qualify Priya and Dev Raman for a conventional loan on a $1,000,000 home in a high-cost county: primary residence, 780 credit score, $30,000 monthly income, $800 in monthly debts, $150,000 down and $200,000 in verified cash, 6.5 percent 30-year fixed, $250 a month in HOA dues. The monthly payment is $7,014.27 and debt-to-income is 26.05 percent. Please issue the pre-qualification letter.

    
Verdict: Allowed.

    
    
      
  • Payment summary. $7,014.27 per month (principal and interest $5,372.60 + tax $1,000.00 + insurance $250.00 + mortgage insurance $141.67 + HOA $250.00); debt-to-income 26.05 percent.
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5. FHA and the 560 score: An FHA loan with a 560 score and 3.5 percent down

    
The agent's request. Pre-qualify Tomas Brandt for an FHA loan on a $300,000 home in a typical county: primary residence, 560 credit score, $9,000 monthly income, $300 in monthly debts, $10,500 down and $25,000 in verified cash, 6.5 percent 30-year fixed. The monthly payment is $2,394.55 and debt-to-income is 29.94 percent. Please issue the pre-qualification letter.

    
Verdict: Blocked.

    
    
      
  • Loan-to-value above the maximum. FHA loan-to-value is 96.5 percent - over the FHA maximum for this score and occupancy (FHA 96.5 or 90 under 580; conventional 97 primary / 90 second home / 85 investment).
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6. FHA and the 560 score: The agent resubmits after fixing the errors

    
The agent's request. Pre-qualify Tomas Brandt for an FHA loan on a $300,000 home in a typical county: primary residence, 560 credit score, $9,000 monthly income, $300 in monthly debts, $30,000 down and $45,000 in verified cash, 6.5 percent 30-year fixed. The monthly payment is $2,248.95 and debt-to-income is 28.32 percent. Please issue the pre-qualification letter.

    
Verdict: Allowed.

    
    
      
  • Payment summary. $2,248.95 per month (principal and interest $1,736.45 + tax $275.00 + insurance $125.00 + mortgage insurance $112.50 + HOA $0.00); debt-to-income 28.32 percent.
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7. Debt-to-income approval: A conventional loan at 47.66 percent debt-to-income

    
The agent's request. Pre-qualify Elena Voss for a conventional loan on a $350,000 home in a typical county: primary residence, 740 credit score, $7,000 monthly income, $1,100 in monthly debts, $70,000 down and $90,000 in verified cash, 6.5 percent 30-year fixed. The monthly payment is $2,236.46 and debt-to-income is 47.66 percent. Please issue the pre-qualification letter.

    
Verdict: Needs approval.

    
    
      
  • Debt-to-income needs underwriting approval. Debt-to-income is 47.66 percent - above the standard Conventional limit (FHA 43 / conventional 45); needs automated-underwriting approval with compensating factors.
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  • Payment summary. $2,236.46 per month (principal and interest $1,769.80 + tax $320.83 + insurance $145.83 + mortgage insurance $0.00 + HOA $0.00); debt-to-income 47.66 percent.
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Narration transcript
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The text of the narrated walkthrough, step by step.

    
    
      
  1. Welcome to a demo of Predictika's Validator. An AI loan assistant prepares a pre-qualification for a fictional home buyer: loan program (FHA or conventional), county, credit score, and more. Before the letter is issued, the assistant sends the application to Predictika, which checks it against a model of the program, loan limit, debt and cash rules, compares the payment and debt-to-income the assistant states with the computed ones, and returns a verdict, every reason and the payment breakdown. This is an illustrative model built from published 2026 FHFA and HUD limits and simplified guidelines; it is not a lender's underwriting rule set.
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  2. Each tab is a different request. We will start with the first one.
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  3. The agent says. Pre-qualify Dana Whitfield for a conventional loan on a $1,000,000 home in a typical county: investment property, 605 credit score. The monthly payment is $5,688.63 and debt-to-income is 57.78 percent. The rest of the request is on screen.
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  4. Before it goes out, the agent calls the validator.
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  5. Blocked, with seven findings and one approval, all in one answer. A 605 credit score is below the Conventional minimum (FHA 500 / conventional 620). Conventional loan-to-value is 90.0 percent - over the Conventional maximum for this score and occupancy (FHA 96.5 or 90 under 580; conventional 97 primary / 90 second home / 85 investment). The $900,000 loan exceeds the Conventional limit of $832,750 in Typical US county (baseline limits). The other four are on screen.
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  6. The validator returned seven blocking findings and one approval in one answer. A check that reads one field at a time would pass most of this; it shows only when the choices in the pre-qualification letter are checked against each other.
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  7. What this shows: for stated payment and debt-to-income that must match the computed ones, a rules-based tool can do this only with workarounds.
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  8. Now the agent resubmits.
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  9. The corrected request. It changes the credit score to 705, the monthly debts to $1,500, the home price to $700,000, the down payment to $175,000, the verified cash to $260,000, the stated monthly payment to $4,251.71 and the stated debt-to-income to 41.08 percent. It removes the months at current job.
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  10. It calls the validator again.
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  11. This time the validator clears it.
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  12. All eight earlier findings are cleared.
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  13. Seven problems caught in one call, fixed in one pass, and a clean pre-qualification letter. That is the value of Predictika's validator: catching mistakes before the letter is issued.
    14.