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How to Know if You Qualify for an FHA Loan
Author David Schneider | Nov 26,2007
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Even if you’ve been turned down for conventional home loans, you might qualify for an FHA loan. FHA loans are the easiest type of home loan that people can qualify for, but there are still some guidelines that restrict certain people from receiving FHA loans. The FHA follows these guidelines to ensure that people who receive the loans will be able to make their payments regularly.
How Employment and Income Affects Qualification for an FHA Loan
The FHA considers a person’s employment record and income when deciding if he or she qualifies for a loan. Those who wish to qualify for an FHA loan should have at least two years of steady employment. It’s best if you have been employed by the same company during those two years, but changing employers will not automatically disqualify you for the loan. The FHA also expects that over the last two years that your income should be the same or growing.
How Your Credit Score Affects Qualification for an FHA Loan
Having less than perfect credit will not necessarily disqualify you for an FHA loan, but your credit rating should still be adequate to ensure that you can make your mortgage payments. In general, the FHA expects you to have no more than two payments that were 30 days late in the past two years. If you do meet this standard, then you can begin rehabilitating your credit score by focusing on making all of your payments on time.
How Bankruptcies and Foreclosures Affect Qualification for an FHA Loan
Having a bankruptcy or foreclosure on your record doesn’t mean that you’ll be refused a loan from the FHA, but they need to be in the past and your credit score needs to reflect an improved financial responsibility. Any bankruptcies should be at least two years old. Foreclosures need to be at least three years old. Again, the FHA looks to your credit score for indication that your finances are rehabilitating well to ensure that you can make mortgage payments responsibly.
How Your Gross Income and Mortgage Payment Affects Qualification for an FHA Loan
The FHA expects that about 30 percent of your gross income should be spent on your mortgage payments. Gross income is the amount of money that you make in a year before any taxes or deductions are taken out. If you made $30,000 last year, then FHA will expect you to pay approximately $750 a month on your mortgage.
Meeting all of these standards will help ensure that you qualify for a loan from the FHA, but if you don’t meet one or two, then it’s still possible that they will be able to give you a loan. Guidelines can only indicate the likeliness that your loan application will be accepted, but they do not guarantee that it will accepted. Individual circumstances can include or exclude certain people from receiving a loan, so you should contact the FHA to see if you can qualify for a home loan.
Even if you’ve been turned down for conventional home loans, you might qualify for an FHA loan. FHA loans are the easiest type of home loan that people can qualify for, but there are still some guidelines that restrict certain people from receiving FHA loans. The FHA follows these guidelines to ensure that people who receive the loans will be able to make their payments regularly.
How Employment and Income Affects Qualification for an FHA Loan
The FHA considers a person’s employment record and income when deciding if he or she qualifies for a loan. Those who wish to qualify for an FHA loan should have at least two years of steady employment. It’s best if you have been employed by the same company during those two years, but changing employers will not automatically disqualify you for the loan. The FHA also expects that over the last two years that your income should be the same or growing.
How Your Credit Score Affects Qualification for an FHA Loan
Having less than perfect credit will not necessarily disqualify you for an FHA loan, but your credit rating should still be adequate to ensure that you can make your mortgage payments. In general, the FHA expects you to have no more than two payments that were 30 days late in the past two years. If you do meet this standard, then you can begin rehabilitating your credit score by focusing on making all of your payments on time.
How Bankruptcies and Foreclosures Affect Qualification for an FHA Loan
Having a bankruptcy or foreclosure on your record doesn’t mean that you’ll be refused a loan from the FHA, but they need to be in the past and your credit score needs to reflect an improved financial responsibility. Any bankruptcies should be at least two years old. Foreclosures need to be at least three years old. Again, the FHA looks to your credit score for indication that your finances are rehabilitating well to ensure that you can make mortgage payments responsibly.
How Your Gross Income and Mortgage Payment Affects Qualification for an FHA Loan
The FHA expects that about 30 percent of your gross income should be spent on your mortgage payments. Gross income is the amount of money that you make in a year before any taxes or deductions are taken out. If you made $30,000 last year, then FHA will expect you to pay approximately $750 a month on your mortgage.
Meeting all of these standards will help ensure that you qualify for a loan from the FHA, but if you don’t meet one or two, then it’s still possible that they will be able to give you a loan. Guidelines can only indicate the likeliness that your loan application will be accepted, but they do not guarantee that it will accepted. Individual circumstances can include or exclude certain people from receiving a loan, so you should contact the FHA to see if you can qualify for a home loan. |
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