Qualifying for a home loan can be difficult, if not near impossible, without a sizable down payment and a moderate credit report. If this describes you and your financial position, an FHA loan may be for you! There are fewer restrictions for FHA loan qualifications in comparison to a standard mortgage loan. Rich has made a generalized list of FHA requirements. This list should give you a good idea on where you stand with an FHA loan qualification:
Proven employment status of at least 2 years.
Steady or increasing income over a 2 year period.
History of on-time payment. No more than two missed payments on your credit.
If you've filed for bankruptcy you must wait at least 2 years and have good credit since you filed.
Those with foreclosures must wait at least 3 years since the most recent foreclosure.
Monthly mortgage payment should range between 30% - 50% of your gross income.
You must pay a minimum of a 3.5% down-payment
Only certain properties are eligible - single-family homes, condominiums, double-wide manufactured homes, modular homes and 2-4 unit properties.
The property must be your primary residence.
For a more in-depth look into FHA qualifications please click here.
Guidelines are constantly changing. Please contact Rich for the latest FHA guidelines.
