FHA Loan Qualifications Flashcards
1
Q
Maximum Debt to Income
A
31% to 43%
2
Q
Minimum Down Payment
A
3.5%
3
Q
Minimum Credit Score
A
580 with 3.5% down or 500-579 if the borrower puts down 10% or more
4
Q
Annual Mortgage Insurance
A
Required
5
Q
Upfront Mortgage Insurance
A
required
6
Q
Appraisal
A
Required
7
Q
Gift Funds
A
Allowed
8
Q
Borrowers with Bankruptcy
A
2 years after chapter 7 discharged, 1 year after chapter 13 filing
9
Q
Borrowers after Foreclosure
A
3 years from foreclosure or short sale
10
Q
LTB requirements on cash-out refinance
A
85% max LTV
11
Q
Reserves
A
No Reserve Requirement
12
Q
Seller Concession
A
6% Maximum
13
Q
on-Occupying Co-borrower
A
allowed
14
Q
Assumable
A
Yes with FHA creditworthiness check
15
Q
Employment History
A
FHA loans are less strict on employment history, no specific requirement
