FHA Loan Qualifications

Question 1

Maximum Debt to Income

Answer 1

31% to 43%

Question 2

Minimum Down Payment

Answer 2

3.5%

Question 3

Minimum Credit Score

Answer 3

580 with 3.5% down or 500-579 if the borrower puts down 10% or more

Question 4

Annual Mortgage Insurance

Answer 4

Required

Question 5

Upfront Mortgage Insurance

Answer 5

required

Question 6

Appraisal

Answer 6

Required

Question 7

Gift Funds

Answer 7

Allowed

Question 8

Borrowers with Bankruptcy

Answer 8

2 years after chapter 7 discharged, 1 year after chapter 13 filing

Question 9

Borrowers after Foreclosure

Answer 9

3 years from foreclosure or short sale

Question 10

LTB requirements on cash-out refinance

Answer 10

85% max LTV

Question 11

Reserves

Answer 11

No Reserve Requirement

Question 12

Seller Concession

Answer 12

6% Maximum

Question 13

on-Occupying Co-borrower

Answer 13

allowed

Question 14

Assumable

Answer 14

Yes with FHA creditworthiness check

Question 15

Employment History

Answer 15

FHA loans are less strict on employment history, no specific requirement

Question 16

Owner0-Occupancy

Answer 16

Yes. Must move in within 60 days and continue occupancy for 1 year.