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 1^st lien as long as the current 2^nd mortgage will subordinate as a 2^nd behind an FHA 1^st 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.