FHA Home Loans Refinancing

How to Qualify for a FHA Loan

08.17.11

With less stringent government loan qualifications than most conventional mortgage products, many people are turning to FHA loan programs.  FHA home loans are popular for first time home buyers, because they only have to come up with a 3.5% down payment.  However, no matter how many homes you have owned, you may be eligible for a mortgage with FHA.  How to qualify for a FHA loan is a big question for home owners who have not used these great mortgage products.  All borrowers must be able to document their income and employment.  Unlike some other home purchase loan options, applicants are usually allowed to use gift money for FHA down payment requirements.

FHA Loans Are an Attractive Option for New Home Buyers

If you want to know how to qualify for a FHA loan, start with collecting the documents you need.  Borrowers must be able to document their income to qualify for these government insured home mortgages.  You have to have been employed for the last two years, and it is best if it was with the same employer.  Your income from the last two years must have remained the same or increased.  You do have to come up with a 3.5% down payment, but applicants are usually allowed to use gift money for FHA down payment costs.  These minimal requirements mean FHA is popular with people searching for a first time home buyer loan.

However, though FHA home loans are popular for first time home buyers, they are also popular for those with past bankruptcy or foreclosure. Knowing how to qualify for a FHA loan when you have had one of these can be very empowering.  Your bankruptcy had to have occurred at least two years ago; three years for a foreclosure, with perfect credit since the occurrence of either.  Since borrowers must be able to document their income for at least the past two years, employment is a must.  If someone wants to help you get back on your feet financially, applicants are usually allowed to use gift money for FHA down payment, and you only have to come up with a 3.5% down payment.

Share

3 comments so far

[...] How to Qualify for a FHA Loan – First time home buyers continue to go to the government for purchase mortgages for many reasons. Mortgage rates are low and the credit guidelines are flexible. [...]

This is my first time buying a home.

a truck driver gone school got a certificate after 6 mo Can he by a house



Leave a comment
Line and paragraph breaks automatic, e-mail address never displayed, HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

(required)

(required but not displayed)




 

Switch to our mobile site