Citibank
Mortgage
Wells
Fargo
Mortgages
Bank of
America
Home
Loans
Private
Money
Lenders
First Time
Home
Buyers
Grants
Calculate
House
Payments
Mortgage
Amortization
Table
Home Mortgage Preparation :: FHA Loan Guidelines
FHA Loan Guidelines:
What are the FHA Loan Guidelines?
Custom Search
Before you can understand what the FHA loan guidelines are, you really need a clear understanding of just what the FHA is.
What is the FHA?
These days, the government seems to have more agencies than you can count. In fact, the FHA is now called HUD; it stands for the Department of Housing and Urban Development. The original agency, the Federal Housing Administration, got started back in 1934. Its goal was to help low income families get into their own homes by underwriting their mortgages.
After all, people without much money are high risks when it comes to a loan, so mainstream banks are reluctant to lend to them. So, naturally, there had to be FHA loan guidelines to help the administration with deciding who got a loan, and who did not.
The Nature of the FHA Loan Guidelines
First, you have to look at your credit score. With the FHA loan guidelines, they are more forgiving than a conventional mortgage broker. A score below 500 can still work; although the higher, the better – naturally. Over 700 is great!
Next, they look at your debt ratio; what is your monthly income as compared to the monthly mortgage payment (the principal), and what is your total monthly debt. That is, things like: car payments, child support, credit cards etc.
Next, there is the stability of your income. What this means is just how likely it is that you will continue to earn your current income. What they will look at here, is how long you have been at your current position.
After all, if you have been with a company for ten years, and gotten regular raises, that is a whole heck of a lot better than six months with a firm.
Other factors that come into play within the FHA loan guidelines are your financial history, and the amount of debt you can potentially get yourself into. If you have declared bankruptcy, if you have a great many credit cards, all these can come into play.
Even if you have zero balances on the credit cards, they can cause you trouble. So, to meet FHA loan guidelines, cancel as many as you can.
See also:
All Articles for Home Mortgage Preparation
Custom Search
Only $9.95!!
Learn great tips about how to safely obtain a home mortgage with
Your First Mortgage
Order Online
24 Hours a Day
7 Days a Week
365 Days a Year!
Copyright 2008
Home-Mortgage-Preparation.com :: FHA Loan Guidelines