FHA Loan Requirements – FHA Loan Guidelines

Updated FHA Loan Guidelines for Home Buying or Refinancing

FHA credit score minimums have been implemented by many FHA lenders, so check with your loan officer about your qualifications and eligibility for FHA loan programs. The other significant change that HUD made was raising the down-payment requirements from 3% to 3.5%. Requirements for FHA loans continue to be appealing for 1st time home buyers, underwater homeowners and people with bad credit, so take a few minutes and compare quotes from leading FHA lenders.

The Department of Housing and Urban Development recently announced that FHA would see easier requirements for FHA loans after a foreclosures or bankruptcy. In the past FHA required 36 months to pass for consumers to be eligible for any FHA programs. Now they only require 12 months of timely mortgage payments to be considered after a short-sale, loan default and even a bankruptcy. This is good news for people trying to get back into the housing game after a foreclosure. Applicants must complete at least 1 hour housing counseling from HUD between least 1 and 6 months before submitting the application for a FHA mortgage. After an applicant meets the standards outlined above they can take advantage offered with FHA mortgages. This is an example of one of the ways our government has eased FHA loan requirements this year in an effort to rebuild the housing sector in the U.S.

Loan Requirements for Buying a Home with a FHA Mortgage In 2015

If you are looking for a Federal Housing Administration loan, you probably already know that these loans make it easier for buyers to become home owners. Even if you have had difficulty with credit or finances in the past, an FHA mortgage can help.

Although the process of getting an FHA loan is relatively straightforward, most home buyers are a bit overwhelmed by real estate jargon and paperwork. Working with an approved FHA lender makes the process much easier, of course!

Before you even seek out an FHA lender, it is a good idea to get informed about the basics of the program. This will help you compare FHA options from different lenders and get the best deal for you. Let's explore some of the most important FHA mortgage requirements in 2015.

Buying A Home With An FHA Mortgage? Here Are The FHA Loan Requirements

Although there is a lot of documentation involved in establishing your income and the value of the home you plan to buy, the basic requirements of an FHA mortgage are actually very simple:

The minimum FICO score required for an FHA loan is 500. Higher scores may be helpful.
The minimum down payment for an FHA loan is 3.5%. In rare cases, it may be 5% or more.
If you do not have the money for a deposit or a down payment, a third party can help you.
You can only apply an FHA loan toward a residential property you wish to use "full time."
Regardless of your financial history, you must have 24 months of steady employment now.

If a structure is found to have mold or other major problems, it may be necessary to remediate these issues prior to closing. However, these and other closing costs can typically be financed.

Finding FHA Loan Professionals Who Can Guide You Through The Loan Process

The Federal Housing Administration is a part of the federal government under the Department of Housing and Urban Development. It does not, however, make loans directly. Instead, it helps to insure your loan so that lenders can be freed to loan more money.

Because of this, it is important to find an approved FHA lender to work with. Real estate experts familiar with FHA will guide you, step by step, through the process of getting your loan. This will involve:

Documenting your income
Applying for the loan
Appraising and inspecting the property
Closing on the property

As with any home loan situation, it is important to close as quickly as reasonably possible in order to get the best rates. FHA lenders typically specialize in this kind of loan, so they can accelerate the process and make it easier for you.

Loan requirements for an FHA mortgage are easier than they might seem at first, so getting in touch with a mortgage advisor versed in FHA is a good first step. You might just find that you are soon on your way to the home of your dreams.