2015 FHA Guidelines
Qualifying for an FHA home loan is contingent on four factors referred as the four C's: credit history, capacity to repay, cash assets available to close mortgage, and collateral. There is a base level of criteria that every borrower must meet to qualify for a loan, however, some lenders may hold more strict standards. Even if you feel you might not be eligible, you should still contact our team of financial experts at DirectFHA who will with you to help you understand your options, help you get a better deal, or get you on the right path toward home ownership with a long term plan.
What you'll need
There is a list of required documents any applicant will need when processing a loan. They include:
- Social Security numbers
- Checking and savings account information (including account numbers)
- Information on all open lines of credit including credit cards, student loans, auto loans,etc.
- Complete information on any real estate you currently own
- Approximate value of your personal property
- Gross monthly income amounts for all current employment
- Your addresses for the past two years
- The name and addresses of your employers for the last two years
- You'll also be required to supply the following paperwork:
- Tax returns for the past two years
- Current pay stubs or other paperwork verifying your current income
- Income statement and business balance sheet (these are required for self-employed borrowers only)
Some lenders may require higher scores, however the current base minimum for FHA home loan eligibility is 580. Remember, even if your credit is poor, our team can help.
Debt & Income
Household debt can not exceed 43% of monthly income to be eligible for an FHA home loan. Home payments including principal, interest, taxes, and insurance cannot exceed 31% of monthly income.
A history of poor credit, debt collection, missed payments, or even foreclosures, default, and bankruptcy won't automatically become grounds for loan rejection. Lenders work with clients on a case by case basis. If an applicant is able to exhibit reliable, steady income and payments over a 12- 24 month period, and if 2 years have passed since events such foreclosures, the odds of achieving success are much higher.
To further determine your eligibility contact our highly trained team to begin your journey toward home ownership.