How to Qualify for an FHA Home Loan

FHA loans are a type of mortgage available to homebuyers, and this mortgage attracts interest because of a lower minimum credit score and down payment requirement. Certain lenders offer FHA mortgage loans, which are insured by the Federal Housing Administration. Before applying for this type of financing, fully understand the lending criteria.

Instructions

1. Ensure your credit score is at an acceptable level. You only need a 620 credit score to qualify for an FHA mortgage loan. If your score falls below this range, start paying your credit cards and loans before the due date and get rid of consumer debt to give your personal score a boost.

2. Practice saving your money. FHA mortgages have a minimum down payment of 3.5 to 5 percent. Spend wisely, reduce expenditures and resolve to deposit a certain percentage of your income into savings.

3. Adhere to the waiting period. Clean up your credit after a bankruptcy or foreclosure by acquiring new accounts and maintaining these accounts. Wait at least two years after a bankruptcy discharge and three years after losing your prior home before applying for an FHA mortgage loan.

4. Work for at least two consecutive years. Give yourself time to lengthen your employment and income history. FHA mortgage loans require 24 months of continual employment and income statements from the past two years.

References

• HUD: Let FHA Loans Help You
• FHA Home Loans: FHA Loan Qualifying Summary