FHA Loan Qualifications and guidelines are set so that low to moderate income families can get these with ease. Unlike this, most of the conventional loans given by private lenders have difficult qualification requirements, which everyone cannot meet. In this, hardcore investigation for the credit score is done as this is one of the primary factors in deciding the loan amount. The Federal Housing Administration or FHA loan qualifications are simpler than the conventional loan and it is administered by the HUD , the Department of Housing and Urban Development.
FHA Loan Qualification Requirements
Here is a list of the FHA Loan Qualification requirements:
FHA loan qualification requirement needs the borrower to be working and must have two years of stable employment. The employer can be different but working with the same employer is beneficial while getting the mortgage
For the period of last three years income should either be similar or should show the increasing trend. But as such there is no minimum limit of income that is set to qualify for FHA loan. Along with this the payment of bills must be done on time. If the part-time pay, increments, bonus are regular then these are considered as a part of income.
Although much strictness is not there for checking the credit score while fulfilling the FHA loan qualifications yet the bare minimum requirements of this must be completed in order to obtain this. The bankruptcy must be two years old and after that you must have good credit standing. All the outstanding tax liens must be paid. State Department of Revenue or IRS must be contacted to have new arrangements repayment plan. The time of the foreclosures must also be of three years and should have good credit standing after that.
There are certain FHA loans in which the down payment can be obtained from the relative, government agency as a gift. But some of the loans needs down payment that can be 3% of the purchased home price. FHA mortgage qualification, thus also needs minimum down payment in certain cases. In case repairs and renovation is done on own then the cost of the labor will be considered as down payment. This is called sweat equity. Along with this there are many other options of down payment for FHA loan qualifications.
Mortgage payment and amount is directly related to the gross income and it can be 30% of the gross income. You can use 41% of the income towards long term loan and housing expenses. You can more loan amount if your down payment is large, has the cash reserves, ability to pay back the mortgage, less monthly housing expenses etc.
All these must be taken while checking FHA loan qualifications. TO obtain FHA loan you must contact the lenders who are authorized to give these Federal Housing Administration loans.