FHA Loan Requirements

Dated: 01/17/2020

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fha

  • An FHA loan is a government backed loan that insures bank if borrowers do not pay. It minimizes the risks to banks but they must follow all guidleines. It only requires 3.5% down and seller can pay up 6% of the closing costs. Here are some of the requirements below: 
  • You need 580 minimum FICO score to meet FHA loan credit score requirements (some lenders may even require a 620.)
  • You can’t have any late payments for at least 12 months.
  • If you’ve ever filed Chapter 13 Bankruptcy, it must be discharged at least 1 year.
  • If you’ve ever filed Chapter 7 Bankruptcy, it must be discharged at least 2 years (12 months may apply if  bankruptcy was due to economic event).
  • You can’t have a Foreclosure during the last three years
  • The new housing payment can’t exceed 31 percent of the applicant’s combined income.
  • There is an income to debt ratio 
  • They want to see two year work history in the field.
  • The new housing payment plus all additional expenses can’t exceed 43 percent of the applicant’s combined income.
  • An FHA approved appraiser must do a visual inspection of the interior and exterior of the property to determine if it meets
  • The appraised value of the home must meet or exceed the minimum loan-to-value requirements for the mortgage program being used.
  • FHA loans can only be used to finance primary residences.

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Anthony Figueroa Jr, LLC

Anthony Figueroa is a Licensed Real Estate Broker Associate, REALTORĀ®, and he take pride in delivering unforgettable experiences for buyer and sellers. He has worked for a title company, real estate ....

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