In the current lending environment, it can be difficult or even impossible for previously qualified people to get a home loan. One of the most flexible mortgage programs available today is FHA Loans. Although, FHA loans offer many rules and guidelines that borrowers must meet in order to obtain an approval, there are a few big pointers that you can use to get a general idea if you qualify. To qualify for an FHA loan, you will need the following to meet the following conditions:
- You almost certainly will need credit score of 620 or higher.
- You will need to make enough documented income to exceed the debt ratio requirement of 31/43. This means that your housing expense shouldn’t be more than 31 percent of your income and your total expenses shouldn’t be more than 43 percent of your income.
- The property must have the equity to hold the desired loan amount up to 96.5% on purchases and 97.75% on refinances.
If all of the conditions above are true for your transaction, you will have a much better chance of getting your FHA loan approved.
