Mortgage Miracles Happen

April 18, 2008

How do I know if I qualify for an FHA loan?

How do I know if I qualify for an FHA loan?

The general overall topics to qualify for an FHA loan are:

  • Primary Residence – The house must be the one you live in, not an investment property. You used to be able to get an FHA loan for an investment property, but not anymore.
  • Income – 2 year history of income being proved through any of the following methods
    • 2 Years of tax returns
    • Cancelled checks
    • Pay stubs
  • Employment History / or history of income / stability history & likelihood of future income
    • Letter from social security or which ever entity that issues your checks / direct deposits.
  • Debt to Income Ratio(‘s)
  • Credit Score (a minimum of 580 is now being looked at)
  • Down Payment of 3% for a purchase
    • This can be gifted from a family member or from a qualified foundation
  • FHA Secure doesn’t need to have any equity as it needs to be a 1st lien as long as the current 2nd mortgage will subordinate as a 2nd behind an FHA 1st mortgage.
  • Loan Amount – Read our article of loan limits for FHA Loans. In short, each county in the country has a set limit for the maximum dollar figure that will be lent out in that county for any given property based on the appraised value.
    • I.E. The maximum loan in Salt Lake County, Utah for a single (1) family property is $729,500. A home owner (if they qualify for the loan) can get a loan up to $729,500 in Salt Lake County. In Davis County, Utah the maximum loan limit for a single (1) family property is: $417,000
    • To check what the Loan Limits by County see: http://www.fhaoutreach.com
  • Credit – No judgements & collections
    • You can pay off a collection on a refinance. You cannot buy a property & get a new loan with a collection on your credit.
    • If you have been in CH 13 Bankruptcy for 12 months you qualify to refinance & payoff your BK 13 if you have sufficient equity in your property.

If you have any questions feel free to contact us.

1 comment:

  1. Thanks for the information! We're looking to buy this year - maybe next - will things still be the same for 2009?

    ReplyDelete

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