FHA mortgage loans are the easiest real estate mortgage loan type to qualify for in 2010. The underwriting guidelines for FHA loans are very flexible and offer forgiveness for past mistakes. Perhaps most important for many potential FHA mortgage customers is that FHA loans require only 3.5% down payment, allowing virtually everyone to put together a downpayment.
The below are a quick and basic overview of requirements for FHA mortgage loans:
* Two Years of steady employment, ideally atthe same place of employment.
* Previous two years Income should be same or show a increase.
* Credit report should have a minimum credit score of at least a 620. FHA loans used to have easier credit score requirements, but these have tightened in recent years. Ideally you will have no more than two or three thirty day lates in last two years with a minimum credit score of 620 or higher or in some cases no credit score at all. If you have had previous charge-off accounts, these must be paid and show a zero balance.
* Bankruptcy’s must be at least two years old, with perfect credit since discharge.
* Foreclosure’s must be at least three years old, with perfect credit since.
* New mortgage payment should be approximately 30% of your gross income (pre-tax).
The above give you a simple overview of FHA loan requirements. Assuming you meet the above criteria, there is a good chance that you will qualify for an FHA mortgage loan.
