Reader question: “My husband and I are researching FHA loans because we think we’ll have to go that route (as opposed to using a conventional loan). Some of the rules and guidelines I’ve read about have me worried. It all seems a bit rigid. So my question, are there exceptions to the FHA requirements?” Here’s […]
The debt-to-income ratio (DTI) is a key qualification requirement when applying for an FHA loan. If you are carrying too much debt relative to your earnings, you might have trouble getting approved. The question is, where do lenders draw the line? Here’s an in-depth look.
The FHA loan information in this article covers some of the basic requirements for the program. It explains the basic income requirements, down payments, debt ratios, and credit scores. This article was written in response to a reader’s question. For more on this subject, see HUD Handbook 4155.1.
How soon can I qualify for an FHA loan after a bankruptcy filing? This question was sent in by a reader. The rules are slightly different for Chapter 7 and Chapter 13 filings. Generally speaking, there is a one-year and a two-year rule, depending on the type of filing.
The FHA financing program offers several benefits for borrowers. The benefits include a smaller down payment and easier qualification, when compared to conventional financing. These loans can be used for detached homes as well as condos, but the condominium project must be approved.
FHA loans are not limited to first-time home buyers. But they are often well suited for such buyers, and for a variety of reasons. One of the biggest appeals is the relatively low (3.5%) down payment requirements. Of course, there are some drawbacks as well.
FHA pre-approval is an important step in the path to financing. This is when the lender reviews your financial qualifications to determine (A) whether or not you are qualified for a loan, and (B) how much they are willing to lend you. This article explains the pre-approval process from start to finish.
There have been rumors that the Department of Housing and Urban Development (HUD) is planning to raise the minimum down payment for FHA loans from 3.5% to 5%. At the moment, however, these are only rumors. Here’s what you need to know. An FHA loan is a federally insured mortgage. They are generated in the […]
This article provides a wealth of information on FHA loan guidelines for 2013. It covers credit scores, down payments, debt ratios and more. Please note that this information changes from time to time, as new guidelines are issued by HUD. Here are the latest rules.
Are you planning to apply for an FHA loan in 2013? If so, you should know about a recent change. Borrowers with credit scores below 620 will face additional scrutiny from lenders. In order to be approved, they’ll need to have debt-to-income ratios no greater than 43%.