Compared to conventional loans, some proclaim that FHA loans are easier to get. But, if you have the right mortgage broker by your side, you will find that getting approved for either of the above funding options is quite easy.
Anyway, when it comes to FHA loan requirements, there are some things that the borrower must keep in mind. To get an FHA loan, the borrower must provide:
Unlike USDA loans, there are no higher income limits. In short, you can never have too much money to get approved for an FHA loan. You must, however, have more than the lower mark.
To get an FHA loan, your credit score must be at least 580. If your credit score is less than 580, the minimum required down payment becomes 10% of the loan amount.
The borrower must provide proof of employment for at least two most recent full years. However, there is no minimum time of employment specified for FHA borrowers by FHA.
Debt to Income Ratio
Your ability to repay the loan is very important to the FHA lenders and to evaluate that, they would like to know your debt to income ratio. An FHA lender will know your existing mortgage or loans to see if you will be able to afford an FHA loan.
There are FHA Loan limits for each kind of property. These limits change frequently and for someone out of the lending business, it gets baffling to keep track. But with PierPoint Mortgage, you can know the requirements, limits, and other benefits associated with these loans!
For any queries regarding the FHA mortgage in the USA, you can rely on us! Choosing the FHA loan can give you a chance to own the home of your dreams. An FHA home loan is a government-subsidized loan that is not only popular with first-time home buyers, but with buyers who have previously purchased a home.
The eligibility criteria are flexible and the credit score requirements are not strict. This is why FHA loans attract first-time homebuyers. Some borrowers can also qualify for down payment assistance. There is no set income limit with HUD-FHA-insured mortgage programs. That is why anyone could qualify for an FHA loan if they have a good credit history and can handle the monthly mortgage payment.