FHA LOAN - How do you qualify?
The first step to qualifying for an FHA loan is to work with a loan officer at an FHA approved lender. General guidelines that the loan officer will discuss with you for FHA loans include:
Documenting an employment history over the last two years. FHA guidelines consider the last two years of employment and look at a steady pay history or employment with the same employer.
Generally must have a valid social security number and be a resident of the US. There are exceptions for resident aliens, but these exceptions will vary by lender.
FHA loans require a minimum down payment of 3.5% when buying a home – but the down payment may be a gift under certain conditions.
The property will need to be inspected by an FHA appraiser and an FHA approved appraisal must be done.
Although there is some flexibility, the total monthly mortgage payment generally should not exceed 30-32% of your gross monthly income.
Your total debt should not be more than 43% of your gross monthly income. Again, there is some flexibility with this number, but this is a good guideline.
Minimum credit scores now apply with FHA loans and can vary by lender. A credit score of 580 and above requires a 3.5% down payment and a credit score of 500-579 requires a 10% down payment. Credit score requirements will vary by lender.
If you have had a bankruptcy that has been discharged, the waiting period is 2 years.
If you have had a foreclosure, the waiting period is 3 years and you must have good credit.