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FHA Loan Requirements |
FHA Loan Requirements are not hard to meet as people with poor credit history can also obtained the FHA insured loans. FHA is not a loan provider but it provides the insurance on private mortgages. Most of the FHAL loan programs are made for the first time home buyers. But the borrower who has adjustable rate mortgage and facing the risk of foreclosure can also avail FHA Secure Program. There are certain basic FHA loan requirements that must be met by every borrower.
- Valid citizen of US
- Borrower must have Social Security Number (SSN)
- Must have attained a legal age to sign mortgage documents (state specific)
FHA Loan Requirements for Homes
Along with these basic FHA loan requirements there are certain other criterias on which the home loan is given. This include the following:
- Steady employment for two years
- Any bankruptcy must be two years old
- The foreclosure must be three years ago
- The mortgage payment should be 30% of the gross monthly income
- The minimum credit score should be 580
The credit history can be build on rental payments, auto insurance payment and other bills instead of traditional credit history. Any nonpayment on student loan will make you ineligible for the FHA loan. The age of the foreclosure is one of the major FHA loan requirements.
FHA loan requirements also include the total debt payment that cannot be more than 43% of the gross monthly income. In this car loan, students loan and credit card debits are also included. Generally 3% of cash-on-hand is one of the the FHA loan requirements, which is used as a down payment and closing cost.
FHA Loan Requirements for Condos
FHA loan requirements for condos must be checked before purchasing a condos. First and the foremost is buying of condo should be made only from the HUD's approved list of condominiums. It must be clear that appropriate flood insurance, hazard insurance and liability must be covered completely. About 90% of the units in condos must be sold out and 51% out of these must be owner occupied. Along with these requirements, the condo purchased must be used by the borrower for self residence.
FHA loan standards are kept very low but then also borrower must meet the basic FHA loan requirements in order to qualify for the same.
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