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Who Are Ideal Candidates for FHA Loans?
Author David Schneider | Nov 26,2007
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Low-income families or people with a history of credit problems frequently seek FHA loans. FHA loans are extremely popular because they are flexible and have requirements that are lower than those of conventional lenders. If you wonder who ideal candidates for FHA loans are, it’s probably because you are thinking about applying for a loan yourself and want to be certain that you fall within the guidelines that the FHA has for its borrowers. If you fall within these guidelines, then the FHA should approve you for a loan.
An Ideal Candidate with a Steady Employment History
The FHA looks for loan candidates who have at least two years of steady employment. They prefer borrowers who have been employed by the same company during this two-year period, but changing employers won’t necessarily disqualify you from approval. If you’re trying to become the ideal candidate for an FHA loan, then you should think about your employment history. If you have gaps in your employment history over the past two years, then you can help qualify yourself for a loan by keeping the same job for at least two years.
An Ideal Candidate with a Steady Income
Steady employment will usually lead to a steady income. The ideal FHA candidate is making more money today than he or she was two years ago. This doesn’t have to be a significant increase in pay. If you have been receiving regular raises from your employer, then you should be fit to receive a loan from the FHA. Even if you are making the same amount of money today as you were two years ago, you can qualify for a loan. The FHA uses this guideline to help ensure that you’ll be able to make your monthly mortgage payments. Those who have a steady and consistent source of income are more likely to have the money to pay the mortgage over the upcoming years. The FHA expects borrowers to spend about 30 percent of their gross income on their mortgages. If a person’s income meets this expectation, then your income shouldn’t disqualify you from the loan.
No Bankruptcies or Foreclosures for Ideal Candidates
The ideal candidate for an FHA loan won’t have any bankruptcies of foreclosures on his or her record. If you have experienced a bankruptcy or foreclosure in the past, then there isn’t much that you can do to eliminate it from your record. That doesn’t mean that you can’t qualify for a loan though. The FHA guidelines suggest that potential borrower’s shouldn’t have a bankruptcy within the past two years. Foreclosures should have occurred at least three years ago. By avoiding bankruptcies and foreclosures in the future, you can help yourself qualify for an FHA loan.
While FHA loans are typically easier to qualify for than mortgages through conventional lenders, they still must follow guidelines to help them ensure that borrowers can be responsible for their monthly mortgage payments. If you meet or exceed the above guidelines, then you should be able to qualify for a loan through the FHA.
Low-income families or people with a history of credit problems frequently seek FHA loans. FHA loans are extremely popular because they are flexible and have requirements that are lower than those of conventional lenders. If you wonder who ideal candidates for FHA loans are, it’s probably because you are thinking about applying for a loan yourself and want to be certain that you fall within the guidelines that the FHA has for its borrowers. If you fall within these guidelines, then the FHA should approve you for a loan.
An Ideal Candidate with a Steady Employment History
The FHA looks for loan candidates who have at least two years of steady employment. They prefer borrowers who have been employed by the same company during this two-year period, but changing employers won’t necessarily disqualify you from approval. If you’re trying to become the ideal candidate for an FHA loan, then you should think about your employment history. If you have gaps in your employment history over the past two years, then you can help qualify yourself for a loan by keeping the same job for at least two years.
An Ideal Candidate with a Steady Income
Steady employment will usually lead to a steady income. The ideal FHA candidate is making more money today than he or she was two years ago. This doesn’t have to be a significant increase in pay. If you have been receiving regular raises from your employer, then you should be fit to receive a loan from the FHA. Even if you are making the same amount of money today as you were two years ago, you can qualify for a loan. The FHA uses this guideline to help ensure that you’ll be able to make your monthly mortgage payments. Those who have a steady and consistent source of income are more likely to have the money to pay the mortgage over the upcoming years. The FHA expects borrowers to spend about 30 percent of their gross income on their mortgages. If a person’s income meets this expectation, then your income shouldn’t disqualify you from the loan.
No Bankruptcies or Foreclosures for Ideal Candidates
The ideal candidate for an FHA loan won’t have any bankruptcies of foreclosures on his or her record. If you have experienced a bankruptcy or foreclosure in the past, then there isn’t much that you can do to eliminate it from your record. That doesn’t mean that you can’t qualify for a loan though. The FHA guidelines suggest that potential borrower’s shouldn’t have a bankruptcy within the past two years. Foreclosures should have occurred at least three years ago. By avoiding bankruptcies and foreclosures in the future, you can help yourself qualify for an FHA loan.
While FHA loans are typically easier to qualify for than mortgages through conventional lenders, they still must follow guidelines to help them ensure that borrowers can be responsible for their monthly mortgage payments. If you meet or exceed the above guidelines, then you should be able to qualify for a loan through the FHA. |
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