how hard is it to get approved for an FHA loan?
I'm a 23 year old male. My credit score is about 700. I have no debt of any kind, no car payment, no credit card debt, etc.
I am in the military and make 38000 a year before taxes but will be getting off of active duty soon, but will be in the reserves. I will be making roughly what I make now once I'm out from part time work, the reserves, and the GI bill, etc.
I am only seeking about 40000-50000 to buy a foreclosed property that is in decent shape (houses are cheap over here anyway)
I'll have about 7000 saved up by the time I find a house. I've already done the pre-qualification. What are my chances of getting fully approved?
Also, will the banks ask me when I'm getting out of the military? I'm not interested in doing a VA home loan.
- Genuine GuidanceLv 79 years agoFavorite Answer
They will want to know that you have the means to pay back the loan. If you are going from full time employment to part time, that might hurt you, unless you will still have a full time income.
Do you not have any debt because you have never had credit? If you have had credit and your score is 700, that will work in your favor since FHA is usually 620 to 640 FICO to get your foot in the door.
You say you have done the pre qualification. That is different than being pre approved. Maybe you are just mixing the terms, but if you have already visited a lender and have a letter stating they will loan you the money, chances are, you will be able to buy something.
- Anonymous9 years ago
"The mission of the FHA is to provide home ownership opportunities to every American who can provide proof of income and their ability to meet their loan obligation"
You should be able to qualify. The FHA has very lenient qualifications, compared to trying to qualify for many other types of loans. You have is a great credit score! Usually it just has to be above a 640 to be approved for an FHA loan.
Here is a list of the qualifications you will need to fulfill to obtain an FHA loan:
- No late payments on your credit (some lenders will take one, but it very few)
- Steady income for 2 or more years
- Employment history for at least 2 years
- Bankruptcy must be 2 years or old if present on a credit report. (any foreclosures must be older than 3 years old)
- You only need about 3.5% for a down payment compared to 10-20%.
You may want to consider a VA loan though. There is no down payment required, it is even easier to qualify, and there is a lot more flexibility with the loan.Source(s): I work for Flagship Financial - personal experience and www.mortgage101.com