FHA Mortgage Requirements

FHA Mortgage Requirements

FHA Mortgage Requirements

FHA loan qualifying  requirements have been relaxed as part of the Federal government’s Housing and Economic Recovery Act, 2009. The purpose of the act is to provide some relief for home owners affected by the subprime housing finance crisis, and to help stabilize the housing market overall.

Relaxing the FHA mortgage requirements will allow more FHA insured mortgages to be issued, and in some parts of Florida, will allow FHA loans to be issued for higher priced properties than was previously allowed.

If you are like most suffering from mortgage stress, you should see whether the new FHA mortgage loan requirements will allow you to qualify for an FHA insured mortgage loan

Qualifying for an FHA Loan is easy

1. Age – you must be above the minimum age required to sign a FHA mortgage loan in your state. There is no maximum age limit for FHA qualifying.

2. Citizenship – you are not required to be a citizen in the USA, however  you must be a permanent resident of the USA legally paying US taxes.

3. Social Security Number – FHA Loans require you will require a valid Social Security Number; a Tax ID number is not sufficient.

4. You must have a at least 3.5% down payment (and you must be able to finance the closing costs of the FHA mortgage loan.

5. The property in question must be a residential home consisting of 1-4 units

6. The homes value cannot exceed the allowable maximum FHA loan limits for your area and the type of dwelling.

7. You will need to meet the FHA mortgage lender’s qualification requirements for an FHA mortgage loan. The requirements for FHA loans are generally more lenient than standard mortgage qualification requirements.

8. Qualifying Credit Score – you do not need to have a good credit score to obtain an FHA mortgage loan. FHA mortgage lenders cannot reject an FHA mortgage applicants because of having no credit history. If you have declared bankruptcy in the past, or have a past foreclosure, there will be some additional requirements before you can qualify for an FHA loan.

9. FHA  Income requirements – FHA has no minimum or maximum income requirement for FHA loan qualifying.

10. FHA Debt-To-Income Ratios – With an FHA loan you can use up to 35% of your Gross monthly income or before tax income towards housing, and up to 50% of your gross monthly income on the combination of housing plus all other monthly payments on your credit report.

11. FHA Down Payment – you will need a 3.5% down payment, but this can be in the form of a grant or gift.

12. Seller paid Closing Costs – you will need to be able to pay the closing costs of the FHA loan, but with FHA the seller can pay up to 6% to cover your closing cost including prepaid taxes and homeowners insurance.

Other FHA loan Advantages Include:

Minimal Down Payment and Closing Costs.

Down payment less than 3.5% of Sales Price Gift for down payment and closing costs allowed. No reserves or required. FHA regulated closing costs. Seller can credit up to 6% of sales price towards buyers costs.

Easier Credit Qualifying Guidelines such as:

Minimum FICO credit score of 540. FHA will allow a home purchase 2 years after a Bankruptcy. FHA will allow a home purchase  3 years after a Foreclosure. 

Easier Debt Ratio & Job Requirement Guidelines such as:

Higher Debt Ratio’s than other home loan programs. Less than two years on the job is allowed. Self-Employed individuals o.k.

www.FHAmortgageFHALoan.com

 FHA refinancing and new FHA loan information: These FHA mortgage loans will help you buy or refinance with a low down payment, backed by FHA/HUD.FHA mortgage loan requirements are more lenient than conventional requirements.

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