FHA Home Loan Requirements and Eligibility Guidelines Would you like to buy a home but feel like your credit scores might be too low? You can still buy a home with the help of an FHA home loan. Federal Housing Administration (FHA) mortgages are the easiest type of home loan to qualify for. An FHA loan is a government-backed mortgage loan, insured by the U.S. Federal Housing Administration and is geared towards helping first time home buyers and those with potentially low credit scores. In this article, we are going to look at some of the eligibility requirements to qualify for an FHA loan.
Credit Score and Down Payment Requirements The general requirement to get an FHA-insured loan is a ten percent down payment and FICO score of 500 or higher. If the borrower has a 3.5 percent down payment it will require a credit score of 580 or higher in order to qualify. Income Requirements
There is no defined salary that will help you qualify or stop you from qualifying for an FHA loan. You are required to have minimum of two credit accounts such as an auto loan, or credit card. You are required to have an account with the verified cash required for the down payment. You cannot have any overdue judgments or federal debt. To qualify for an FHA mortgage loan, you are required to have 50 percent or less debt-toincome ratio. This includes credit cards, new mortgage, student loans, and any other monthly obligations. FHA Property Requirements The eligibility guidelines for an FHA loan are not only limited to homebuyers. The property must also meet certain requirements in order for you to qualify for an FHA loan. Some of the FHA property requirements are:
The property cannot have been owned within 90 days of prior sale. At least one buyer must occupy the house within 60 days of closing. Investment properties are not eligible for FHA loan. The property must be in your name or the name of a living trust during settlement. A strict home inspection based on the value and on minimum property standards is mandatory for an FHA appraisal.
Documentation Requirements When applying for an FHA mortgage loan, you must be ready with the following required documents including social security number, pay stubs, and tax returns required by your FHA approved lender. Mortgage Lender Requirements If you meet all of the requirements for the FHA loan, you should be able to qualify with no problem. It is recommended that you work with a reputable mortgage company that will help you qualify for the loan. The mortgage company is on your side and will help you get things in order so that you have a great chance to qualify for the FHA home loan.
Source: https://medium.com/@communitylendinggroup2727/fha-home-loanrequirements-and-eligibility-guidelines-5eeb4caf71ae