Because of the FHA mortgage requirements, about 1 of 3 mortgages in the US for home purchases are an FHA home mortgage. Many first time home buyers use an FHA mortgage to purchase their first home.
FHA mortgages are an easier loan to qualify for than a loan from Freddie Mac and Fannie Mae. The reason for this is that FHA mortgage requirements require less downpayment, lower credit scores and allow for less than perfect credit.
FHA Mortgage Requirements To Qualify For An FHA Loan
You must have a job. The ideal is that you have had the same job for that past 2 years. However, you can qualify as long as you can explain any job gaps and have at 30 days of employment at the time of applying for an FHA mortgage.
You must be a US citizen with a valid Social Security number. You can also get a FHA mortgage if you have legal residency in the U.S.
You must be of legal age to get a mortgage in your state.
You must have enough money for the minimum down payment of 3.5% required for the house you want to purchase. Your downpayment money can be gifted by a family member. If you credit scores are less than 580 you will be required to have at least 10% downpayment.
You must use an FHA approved appraiser when you get your property appraisal.
Your total debt to income ratio must be less than 43%. Your mortgage debt to income ratio can be no larger than 31%. Your mortgage debt or mortgage payment includes principal, interest, property taxes, property insurance, mortgage insurance, home owners association dues.
You must be able to show some established credit with good credit history. Be prepared to have at least 10% downpayment if you do not have any credit scores.
You must be at least two years out of bankruptcy, with no credit blemishes since your bankruptcy in order to qualify.
You must be at least three years out of foreclosure, with no problems with your credit in order to qualify.
You can get up to 3% seller assistance to help cover your closing costs when you use an FHA mortgage to buy a home.
If you think you meet these FHA mortgage requirements, you may want to speak to a loan officer about getting an FHA mortgage to purchase a home. If you have questions about FHA mortgages, please complete the form below and we’ll have someone contact you who can answer your questions.