FHA Loan Requirements - Not Too Hard At All!

FHA loan requirements are generally more lenient than those of conventional lenders. The Federal Housing Administration is a government program administered by Housing and Urban Development (HUD) to help Americans who can't qualify for a conventional mortgage loan become homeowners.

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FHA Loan Requirements: Income Requirement

There is no minimum income requirement to obtain an FHA mortgage loan, but you must demonstrate steady income for at least three years, and demonstrate that you've consistently paid your bills on time. Seasonal pay, child support, retirement pension payments, unemployment compensation, VA benefits, military pay, Social Security income, alimony, and rent paid by family all qualify as income sources. Part-time pay, overtime, and bonus pay also count as income as long as they are steady.


FHA Loan Requirements: Debt-to-Income Ratio Required

The FHA allows you to use 29% of your income towards housing costs and at total of 41% towards housing expenses plus other long-term debt.


FHA Loan Requirements: Down Payment Required

You must have a down payment of at least 3% of the purchase price of the home, and this cash may be a gift or grant. Most affordable loan programs offered by private lenders require between a 3% - 5% down payment, with a minimum of 3% coming directly from the borrower's own funds.


FHA Loan Requirements: Credit Score Required

The FHA is generally more flexible than conventional lenders in its qualifying guidelines. You can qualify for an FHA loan without a credit history. If you prefer to pay debts in cash or are too young to have established credit, there are other ways to prove your eligibility. Talk to your lender for details.


FHA Loan Requirements: Closing Costs Required

Except for the addition of an FHA mortgage insurance premium, FHA
closing costs are similar to those of a conventional loan.

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