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FHA Home Loan

Basic FHA Requirements For Home Loans

What does it take to be eligible to apply for an FHA home loan? FHA requirements include details about income, credit rating and other factors, but before a loan officer looks at any of that information, an applicant has to meet the basics.

Basic FHA Loan Requirements

According to the official site at HUD.gov, applicants must “…have a valid social security number and have lawful residency in the United States and be of a legal age to sign on a mortgage in your state.” Those basic FHA requirements apply to the applicant and any co-applicants listed on a loan application. While some applicants may have privacy concerns about using a Social Security number on a loan application, providing the number is not optional.

FHA Income Requirements

One of the myths about FHA requirements for applying for an FHA guaranteed mortgage has to do with income limits. It’s easy to assume there’s a ceiling or maximum income for an FHA loan, but such limits usually apply when seeking down payment assistance or secondary financing to be used alongside the FHA mortgage. FHA Home Loans themselves don’t feature a maximum income limit—applicants cannot be turned down because they make too much money.

FHA Minimum Income Requirements

Another myth about FHA Home Loans is that there is a minimum income requirement. While this is not true, the FHA official site reminds applicants, “…You must prove steady income for at least three years, and demonstrate that you've consistently paid your bills on time.”

Documentation Requirements

FHA Home Loans are based on the applicant’s credit score, debt-to-income ratio and other factors. Determining an FHA loan applicant’s eligibility requires the borrower to submit the following as part of an FHA loan application:

· W-2 and tax return forms from the last two years
· Bank statements
· Debt information including credit cards, auto loans, and any other bills

These FHA requirements help establish eligibility for a home loan. There are many other steps to take when purchasing a home with an FHA guaranteed mortgage, once eligibility is established and the applicant has been approved.