FHA Loan Requirements

FHA loan requirements are generally more lenient than those of conventional lenders. The Federal Housing Administration is a government program administered by Housing and Urban Development (HUD) to help Americans who can't qualify for a conventional mortgage loan become homeowners.

FHA Loan Requirements: Income

There are no minimum FHA loan requirements for income to obtain an FHA mortgage loan, but you must demonstrate steady income for at least three years, and demonstrate that you've consistently paid your bills on time. FHA loan requirements allow seasonal pay, child support, retirement pension payments, unemployment compensation, VA benefits, military pay, Social Security income, alimony, and rent paid by family to qualify as income sources. FHA loan requirements also allow part-time pay, overtime, and bonus pay to count as income as long as they are steady.

The FHA loan requirements allow you to use 29% of your income towards housing costs and at total of 41% towards housing expenses plus other long-term debt. Compare this with a conventional loan, which generally allows only 28% toward housing and 36% towards housing expenses plus other debt.

FHA Loan Requirements: Down Payment

FHA loan requirements specify that you have a down payment of at least 3% of the purchase price of the home, but this cash may be a gift or grant. Most affordable loan programs offered by private lenders require between a 3% - 5% down payment, with a minimum of 3% coming directly from the borrower's own funds.

FHA Loan Requirements: Credit Score

FHA loan requirements are generally more flexible than conventional lenders are in their qualifying guidelines. You can qualify for an FHA loan without a credit history. If you prefer to pay debts in cash or are too young to have established credit, there are other ways to prove your eligibility. Talk to your lender for details.

FHA loan requirements do not include good credit. In the case of bad credit, the FHA allows you to re-establish credit if two years have passed since a bankruptcy has been discharged and all judgments and tax liens have been paid, or if arrangements have been made to establish a repayment plan with the IRS or state Department of Revenue. The FHA may also allow you to borrow once three years have passed since a foreclosure or a deed-in-lieu has been resolved.

FHA considers down payment requirements - Washington Post

eCreditDaily.com

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Lending changes hit struggling condo market - Daily Journal of Commerce

Daily Journal of Commerce

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CURBOW APPEAL: Creative seller and buyer contributions St. Louis Globe-Democrat Typically if you have a good agent they can work the seller to pay your closing costs; however an FHA loan will mandate you as the buyer have some skin in ... and more »

Marysville couple buys, renovates a home with help from little-used loan program - HeraldNet

Marysville couple buys, renovates a home with help from little-used loan program HeraldNet Then he found information on exactly what he wanted on the Internet: an FHA loan with a relatively low down payment that also includes money for the repairs ...

Today's Lowest FHA Mortgage Rates – March 12 Interest Rates Mixed - Subprime Blogger (blog)

The Guardian

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