FHA is one of only 3 ways to borrow 100% of the $ for a house (VA and USDA rural housing are the others).
They each have a set of guidelines for how much $ they will lend you based on your income/assets/credit.
You will need a 620 mid-score (though down to 550 is possible). Your mortgage payment (PITI + MI), HOA fees, credit card and car payments will need to add up to no more than ~45% of your gross monthly income. The seller can "gift" you your 3% down out of their equity and you can negotiate them paying your closing costs too.
Sit down with a mortgage professional with your paystubs/W-2s/tax returns/bank statements. A pro will be able to tell you within a few minutes how much house you qualify for. Then you can go and put an offer in on house knowing that your loan will close.
I closed a handful of FHA purchases this month. Each one came out of pocket $1000-$2000 total (appraisal fee, credit, home inspector, earnest $), AND they walked into equity in their new place. I love my work... we build peoples' wealth!
Best of luck to you!
Mortgage professional. DBeasley@URFunding.com
· 1 decade ago