Requirements for a FHA Mortgage
Buying a home with a FHA requires a few things. Meeting the fha requirements below is essential to qualify for a low rate home loan.
- Minimum credit score for a FHA mortgage is 500, but most lenders are looking for 620 or greater.
- Most FHA lenders are looking for a debt to income ratio below 45%, but some may go as high as 50%. If you have strong compensating factors, FHA requirements are more flexible but exceptions must be approved by a Direct Endorsed Underwriter.
- You will need to fax in a copy of your last 2 years of tax returns and W2's. Lenders also like to see the last month's worth of pay-check stubs.
- FHA loan requirements state that there is a minimum of a 3.5% down-payment.
- Most FHA lenders will do a verification of rentin which your landlord documents your rent payment history for the last year.