How To Qualify For An FHA Loan
Figuring out how to qualify for an FHA loan is usually the first option for many first time home buyers. This loan is usually the easiest loan to qualify for when making your home purchase. The requirement guidelines for a FHA loan are by far more flexible and only five percent down payment is required. Following a few simple steps can take the bumps out of this process and give you the relief you desire to enjoy this exciting journey towards home ownership.
- First time home buyer. To qualify for a FHA loan you must be a first time home buyer with a valid social security number,a resident of the United states and of legal age to sign a mortgage.
- Credit history. Acceptable credit is necessary to obtain a FHA loan. Although FHA loans are not as strict as other housing loans there are stipulates. To obtain a FHA loan you must show that you can maintain a good credit score after any mishaps in your credit you may have experienced. Having more than two 30 day late payments disqualifies you from obtaining an FHA loan. A credit score of at least 620 is acceptable to lenders. Lenders will check to see if your credit for the last two years is clean and if you are up to date on payments. If you have any school loans in default this will also disqualify you from obtaining an FHA loan.
- Income. Lenders look to see how much home you can afford on your income. The amount of loan you receive depends on your ability to pay the FHA loan back.
- Steady Employment. Lenders feel more comfortable lending to you when you show that you can keep steady employment for at least two years. If you have steady income qualifying for a FHA is one step closer. Steady employment with the same employer is even more preferable if you have maintained the same employer for two years. It shows your commitment and causes the lender to feel you will commit to your loan.
- Down payment. You must have at least three percent of your home purchase price available as a down payment to qualify for a FHA loan.