Know FHA Loan Requirements Before You Buy

Getting the home loan that you need to move into the house that you want might not be as hard as you think these days, especially if you look into FHA loans. The FHA loan requirements are not as strict as you might think in terms of credit history and income so take a look at this guide. It has everything that you are going to need in order to qualify and receive an FHA home loan.

Using this guide certainly won't change what the requirements are, but it will help you to learn how to best fix your financial situation so that you fit in with what the system is looking for.

Obviously with any loan that you apply for there is always some sort of information that you are going to need before you are ready to apply. First off, you need to have a valid social security number which can act as your evidence that you are legally a resident of the United States. FHA loans were created as part of a program to help citizens to buy a home and therefore is not available for people that are not official citizens.

You are also going to need to have verification that you are of age to even be signing a home mortgage within your state. Once you have all of this information such as social security card and license, you will be all set to get started with the next step. You need to be at least 18 years old to qualify.

It might be wise to become educated about your current credit report so that you can see what the FHA loan representative is going to see. Now, lucky for you, the FHA does not focus on your credit report and history like the other lending companies do. They will however, look at the last time you filed for bankruptcy, or the last time that you gave up your home to foreclosure.

If you have had a foreclosure in the last three years, you probably are not a good candidate for this type of loan, and will need to take a look at a different type. There are still loans that might work, but the government will not back you for this type of loan.

Now, you take home pay and ability to pay off the loan is going to be the most important parts of the entire loan process. The FHA is going to look at your yearly income as well as your bills and make a decision from there. If you are concerned about how low your income is, you may need to take up a second job in order to be able to qualify for the loan that you are in need of.

Once that is all taken care of, you can then start discussing your down payment for you FHA loan as well as the collateral that you hold. FHA loan requirements are not as tough to qualify for as long as you know ahead of time. Do not just blindly jump into the entire loan process with the FHA. Take your time and prepare yourself for what is to come, this will give you better odds of getting the loan that you need and the home that you want.