Basic Guidelines for Qualifying for an FHA Loan
Author: Alvin Clavines
The FHA home loan is a good option for home buyers who cannot afford big down payment. Millions of home buyers have benefited from the FHA mortgage loan program since it was introduced by the Federal Housing Authority in 1934. The program is viable for home buyers who do not have a big down payment as the requirements for down payments are lower than with usual mortgages. Qualifying for a mortgage loan that is ensured by the FHA is commonly easier than a non-FHA home loan. For example, if your low credit score does not allow you to get a mortgage through a lender in a standard procedure, this is not the case if you get an FHA home loan through that same lender. You may also get approved with lower down payment, which is good for first-time home buyers who do not have big down payment. Just like the usual mortgage process you have to apply for FHA home loan with the assistance of a regular lender in order to qualify. So here are the general criteria for FHA home loans Two years of continual employment. If at all possible, it should be with the same employer. You need to have a steady income for the last two years. It would be even better if your income has increased over the last two years. Maintain on time payments to creditors. Avoid having multiple late payments in the last two years because this will appear on your credit report. This may limit your eligibility to get an FHA loan. Your credit score should not be lower than 620. You must not have bankruptcy history for the last two years. In case you have a history of bankruptcy, you can still apply for an FHA loan as long as your bankruptcy is older than two years old and your credit has not been tarnished by negative marks after your bankruptcy was cleared. You should not have foreclosed property for the last three years when applying for an FHA loan. In case you have lost a property due to foreclosure, it should have maintained a positive credit since that time. The amount of your loan will be based on your income and your new mortgage payment should be about 30% of the household gross income. You will have to provide a down payment of 3.5% or higher, in most cases. These are some of the most fundamental guidelines for qualifying for a FHA loan. If you think you have these requirements, then you can qualify for an FHA mortgage loan. Applying for an FHA loan through a lender is the only way you can find out if you are qualified or not. Do not be intimidated by the mortgage application process because this is the first step that you must take to qualify for an FHA mortgage loan or any other type of mortgage. In the case you do not get qualified for this type of loan, at least you know which part of your financial record you need to work on.About the Author:
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