Fha Loan Qualifications

– Can You Get A Home Loan?

By: - Loans - May 7, 2011
fha loan qualifications

FHA loans are relatively easy to qualify for, but you need to be aware of the FHA loan qualifications, to make sure you can obtain one. These guidelines are quite flexible, and you usually only need 5% down.

The most basic FHA guidelines include two years worth of steady work, and it’s preferable that both years be with the same company. Your income should be at least as much this year as it was last year. It’s important in this process to show that you are a steady worker and that your job will keep you supplied with the same or a greater income, so that you will be able to make your mortgage payments.

Your credit report needs to have fewer than two late records in the past two years, and your credit score needs to be at least 620, if you have a credit score. These FHA loans qualifications are important to the government as a lender, because they want to be sure that they will continue receiving your payments, and that they will not need to foreclose on your home, if you can’t meet your payment obligations.

If you have had a bankruptcy on your credit record, it needs to have been at least two years prior to your application for a loan. FHA loan qualifications also require you to have perfect credit in the time that has passed since your bankruptcy.

Likewise, if you have had a foreclosure, it must have been more than three years prior to this year, and you need to have kept your credit record perfect since that foreclosure. FHA loans qualifications also require that your new payment for a mortgage not exceed roughly thirty percent of the money you make before taxes.

When you apply for an FHA loan, it’s important that you can document all the facts you are presenting. FHA loan qualifications will insure a more smooth transaction if your documents are in order, before you meet with a lender. You should have your tax returns for the last two years, and the 1099’s and W-2’s for the past two years, as well. One month’s worth of pay stubs are needed, to verify the amount you take home each pay period.

In addition to tax and payroll records, FHA loans qualifications include the last three months of bank statements for your checking and savings accounts, with all pages included. You should also have the most current statements from your retirement accounts, including stocks, money market accounts and mutual funds.

To affirm that your credit has been perfect, or close, you will need to provide your most current credit account information and bills, with the account numbers and payments listed. You’ll need to list your landlord and show canceled checks for your rent. After you provide this information, you’ll be able to learn if you have qualified for an FHA loan.