The FHA is a part of HUD (U.S. Department of Housing and Urban Development) and because FHA loans are insured by the government, they make it easier for a lender to offer you a better deal. Below is a list of basic FHA loan qualification guidelines:
Two years of steady employment, preferably with same employer.
Last two years' income should be the same or increasing.
Credit report should typically have less than two thirty-day-lates in last two years.
Bankruptcies must be at least two years old, with good credit since.
Foreclosures must be at least three years old, with good credit since.
Your new mortgage payment should be no more than about 30% of your gross income.
Also, exact qualifications for FHA loans can vary by location.
FHA Loan Requirements for the purchased home.
The FHA also has some basic requirements for the home that you want to purchase. Homes that are eligible for a FHA loan include:
single-family homes, 2-4 unit properties
condominiums
modular homes
Also, a home is ineligible if the seller acquired the house within the past 90 days. Finally, the FHA financed home must be used as a primary place of residence.
Refinancing an FHA Loan
Already have an FHA loan and you want to refinance? The FHA Streamline Refinance might be the best solution. The FHA Streamline Refinance program has been in place for over 25 years.
TrueCompass Lending Corporation™. Trade/service marks are the property of TrueCompass Lending Corporation, Inc. and/or its subsidiaries. Corporate Offices located at: 8215 SW Tualatin-Sherwood Road , Tualatin, OR 97062. The information contained herein is intended as informational material for the sole and exclusive use of the business entities and consumers to which it was distributed and is subject to change without written notice. This is not a commitment to lend. Restrictions apply. Some products may not be available in all states, not all borrowers may qualify. All rights reserved.
