There are three major types of mortgages. They are FHA (Federal Housing Administration), VA (Veterans Administration), and conventional.
In an FHA mortgage, they do not lend money. They regulate down payments and collect insurance. In this type of mortgage, they insure the lender if there is a default. The main function of this mortgage is to create small down payments.
VA mortgages are only available to veterans and/or their spouses. It does not directly lend money, but it does guarantee part of the loan. There is no down payment or loan limits. However, you do pay them a funding fee.
Like applying for a prepaid credit card, almost anyone can apply for a conventional mortgage. Most of the programs will depend on your credit score. With a high credit score, they might not even require a down payment and you will still get the best rate. With a slightly poor credit score, you will still have a lot of options. With bad credit, there are still programs for you, but you will have to pay a large down payment and interest rates will be very high. Some conventional loans don’t require full documentation, so it is easier for self-employed people to get.
It is best if you do not use online mortgage companies. The first place you should look is your local bank that you use regularly. Take your credit report with you and ask which mortgage would be best for you based on your credit score. The application process is almost always the same. Your loan officer will give you a list of the documents you need to bring with you.