FHA Home Loan Requirements

The Federal Housing Administration (FHA) offers insurance on home loans to lenders, making the loans safer for the lender and easier for the homebuyer to qualify for. These FHA home loans have qualification requirements that are relatively easy to meet.

Advantages of FHA Home Loans

FHA home loans are a good option for first-time homebuyers. They are also good for people who have less than excellent credit ratings or no credit. These loans offer low down payments, usually of around 3%. Requirements for getting a loan of this type are easy for most homebuyers to meet.

Qualification Requirements for Home Buyers

The basic requirements for getting an FHA home loan are:

  • At least two years of steady employment, preferably, though not necessarily, with the same employer.
  • Income over the last two should be the same or increased.
  • Less than two credit payments thirty days late in the last two years.
  • No bankruptcies that are two years old.
  • The ability to make a mortgage payment of about 30% of your gross income.

Requirements for the Home

Not all types of property are eligible for an FHA loan. To qualify the home must be:

  • A single-family home.
  • A 2-4 unit property.
  • A condominium.
  • A double-wide mobile or modular home.