What is an FHA Loan?
An FHA loan is a government-backed mortgage that is insured by the Federal Housing Administration (FHA). FHA loans have more flexible lending requirements than those of conventional loans.
What are the Requirements for FHA Loans?
Below is a list of some of the general requirements and characteristics of FHA loans:
- Down payment can be as low as 3.5%
- The higher the credit score, the lower the down payment
- A lower credit score will require a higher down payment
- Loan amount is based on conforming loan limits, which varies based on the housing type and the state and county in which the property is located.
- Mortgage insurance is required on FHA loans.
- Must have a steady income history.
- Total monthly debt cannot be more than 43% of your monthly income.
- Mortgage payment (including PITI) needs to be less than 31% of your gross monthly income.
How to Qualify for FHA Loans
The requirements listed above hopefully provide a better understanding of how to qualify for FHA loans. GuardHill provides FHA loans for 1-4 family dwellings and utilizes our in-house underwriting team to provide fast approvals to streamline the closing process.
To learn more about all of the specific requirements for FHA loans, contact us today! Get in touch to see if an FHA loan is right for you!