Key FHA Loan Requirements

Are you interested in a government loan and wondered what the FHA loan requirements are? Then read on...

Gaining a clear explanation on these government home loans is really quite simple. You may be surprised to know that the FHA products are actually the smoothest type mortgage for you to be approved for.

Their down payment guidelines are flexible and low. For example, all you need is 3.5% down compared to the 10-20% required for conventional mortgages. There are even some no down payment options.

I love how flexible they are. Their credit requirements are not as stiff. They are even flexible with how you show creditworthiness.

If you think you are ready, be sure to get a loan that works well with first time home buyers.

If you are buying a home for the first time, you need to check out these government programs. The government, through FHA, has contributed for years to the home ownership process for first time buyers.

Even though they are flexible, they do have some basic mortgage requirements for you to qualify. Take a look at the list below to see if you can meet them. If you do, it will be as if you are handed the keys to your first house.

Basic FHA Loan Requirements

You need to be employed for at least two years, preferably with the same employer.
Take a look at your income for the past two years. Has your wages remained the same or are increasing? FHA likes to see stable income.
Now let's take a look at your bills. Have you been late? Your financial report should not show more than two payments more than thirty days late. If you have less or none, great! What about your credit score? They like to see at least a score of 620.
What about a bankruptcy? If you have one of those on your financial report, you need to be released for at least two years and no further problems reflected on it.
Have a foreclosure or a short sale on your report? Unfortunately, you will have to wait three years a least. There are exceptions to this, but that's the basic requirement.
Now let's look at what you make each month. Your projected loan payment cannot take up more than 28% of your total income for the month.

Considering these key requirements may appear easy right? Keep in mind these are just the basic FHA loan requirements. There are more, but if you can meet this simple list, you are well positioned to qualifying for that first loan.