FHA Loans Eligibility Requirements

FHA loans are a response to the dwindling economy of ours. Millions of foreclosures are happening right now. There is an urgent need for the government to try and stop this from avalanching into another major economic crisis. Thus, the FHA has been mobilized and given a shot from the Obama bailout fund.

FHA housing loans


For those looking for FHA loans in order cut back on their financial problems here are some of the eligibility requirements:

* The potential borrower should be able to qualify for the FHA loan.

* As with usual mortgages, the FHA approved lender needs to verify whether or not the borrower meets the qualifications by looking into the borrower’s assets, other debt load, income, and credit history.

* As usual, there is an income limitation. Those who can actually afford to pay the monthlies as computed against their other monthly expenses will be qualified.

* The borrow should have a valid U.S. social security number since only United States citizens that are of legal age can obtain an FHA loan mortgage.

* Even though there are no minimum FICO score requirements in order to qualify for an FHA loan, one’s score will still be the basis for the exact interest rate that will be given.

Remember that the FHA will look for good candidates. Even though nearly everyone can get these loans, there is still a certain kind of person that the FHA prefers to give loans to and that would be a great fit for the program. The FHA is a great option for people who are getting home loans for the very first time. This is because the down payment requirement is not so high as compared to other mortgage deals. FHA loans down payments usually just require the borrower to pay 3 percent of the amount of the entire mortgage.