What are the qualifications for an FHA loan?
Are FHA loans only for houses in foreclosure? Can those with bad credit qualify for FHA loans? Where is a good place to start looking?
- linkus86Lv 71 decade agoFavorite Answer
FHA loans are for any house that is below the FHA maximum limits which varies by state. The requirements for an FHA loan aren't as credit score sensitive as most other programs and often can be used when the borrower has very little or no credit. The rule of thumb is that you have had no late pays in the past 12 months and less than $1000 in collections. FHA loans only require a 2.25% down payment (often thought to be 3%, but it was lowered years ago) and requires private mortgage insurance (PMI) for a minumum of 5 years regardless of down payment, but the PMI is usually less than that of other loans. Not all mortgage brokers offer FHA loans,but you will likely find your larger local banks can offer them to you. Pres. Bush recent proposal to expand FHA rules to come to the aid of home owners at risk of foreclosure is too vague to figure out how FHA will change to meet the need. In the mean time, check out the link below.Source(s): I am a Realtor http://www.fha.gov/
- Anonymous1 decade ago
JS, a good starting place is to visit several local lenders in your area. FHA loans are government insured loans available to everyone who qualifies. No they aren't just for foreclosures. I'm sure you will find lenders who aren't set up to handle FHA at this point, but alot of them are in the process of being accepted by FHA. I say local lenders because if something goes wrong with your loan, you want to be able to walk into their office and get is straightened out. You can't do that with an Internet lender, and most times you won't be able to get them on the phone.
- 1 decade ago
No, they aren't just for houses in foreclosure.
Requirements? 3% borrower investment in the deal(can be gifted by family or charity).
Willingness and capacity to pay are a big part of it. The last 12 months of your credit are key. Most past discretions will be ignored.
Get a friend or family member to refer you to a profesional loan officer. Do not go with someone who says: "I can help you" on an internet chat board. <= or 'Answers' board
Real pros dont solicit
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- 4 years ago
If you are working under the table they will not be able to use your income.You have to have a job where you can show paystubs,and W2 they can use your husbands income.1,600 a month will not qualify you for much, if it qualifies you at all.You may be able to qualify for a small loan once you both have fixed your credit scores.Your scores should at least be in the mid 600.I would say around 650 or so.This is my advice tell your husband to stick with his job.You should change jobs get one that is not under the table,and after 6 months of working at this job you will be able to show your income too.Plus 6 months will give you more time to raise your credit scores.Goodluck!
- Anonymous1 decade ago
up to 3% down....normally 500+ credit scores.
the loan amount can't exceed your county limit....generally most counties are 202,000.....some places like miami, fl
or in california it's 362k
you can use FHA for any type of home....and for purchases or refinancesSource(s): www.freshmortgagerates.com