FHA insured second mortgage up to $25,000

FHA LOAN REQUIREMENTS

In today's housing market crisis, getting a traditional mortgage approved is not an easy task. There are strict requirements that you must meet, which makes it almost impossible for the average American to get a loan. For this reason, FHA loans may be your easiest and only solution to getting approved.

You must meet most of the following requirements to get an FHA Loan approval:
  • You do not have to be a US citizen, but you must be a permanent resident who is permitted to work in the United States.
  • You must have a valid Social Security Number.
  • Steady employment for the past 2 years (preferably but not limited to same employer).
  • No minimum or maximum income restrictions, but you must have an unchanged or increasing income for the past 2 years.
  • You have less than two 30-day late payments on your credit report listing.
  • If you have any bankruptcy filings, they must be more than 2 years old and you must have a perfect credit since the filing.
  • If you have any foreclosures, they must be more than 3 years old and you must have a perfect credit score since the filing.
  • Your current mortgage payments must be approximately 30% of your income before taxes.
  • You do not have any student loans currently in default.
If you meet all or most of the above requirements, apply now to gain freedom from mortgage stress.

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Many people are intimidated by a loan process and are too overwhelmed to ask questions. Lenders count on this fact to benefit themselves, not always using the most ethical practices. For this reason, you must understand the requirements, and also be familiar with the steps that must be followed to ensure that your loan is approved and finalized in your favor.

Here at FHA Lending Requirements, we have made a quick list below of the FHA loan process to help you understand and make this daunting process a bit easier. We are here to help you through every step of this loaning process to get you approved quickly and conveniently.
  • Documents needed: A list of personal paperwork required to proceed with an FHA application. The successful completion of this loan process is completely dependant on these documents.
  • Income: You will have to display your earnings. This allows FHA to see your capability to manage a mortgage payment, qualifying you for a loan.
  • Credit: Although not as strict as conventional loans, the FHA still needs to know your history of dept management. They will look at your credit and other consideration to help determine this factor.
  • Savings: FHA loans do not require you to have any money set aside, however any demonstration of such seasoned funds will help tremendously.
  • FHA Loan Closing Costs: All lenders will require you to pay a transaction and documentation service fee called the closing costs. Unlike conventional loans, these FHA loan closing costs are highly regulated and therefore much lower.
  • Ratios: The FHA uses debt to income ratios to determine if your loan will be comfortable for you to repay. These ratios will also determine the amount of the loan you will quality for.
  • Loan Processing: This is the stage where all your paperwork and information provided will be
    • checked. During this time, any problems with your documents will be addressed and corrected.
  • Underwriting: This is the processes were the paperwork is sent to the underwriter. This person will then review your documents and decide if it meets all the FHA requirements. If it does, then your loan will be approved.
  • Possible delays: FHA loans, like any other type of loans, can come across delays. A typical loan closing time is 30 days and delays can push this time significantly further.
  • Property Appraisal: The home that you decide on must be appraised by a licensed professional that is certified by the FHA. This is important because the final loan amount will be determined by the value of your potential new home.
  • Funding Your FHA Loan: Once everything is checked again and you are approved, then the money will be ready for transfer and you can start your search for your home.
  • Escrow: During the closing process, you will also be required to set up an account that you will have to pay into on a monthly basis separately from your mortgage payment. From this account, the lending company will directly pay for the property taxes and insurance required on your home.
  • Recording: This is the final process of your FHA loan. This is when all the documents that are signed and notarized are sent to the correct county and then becomes public record.
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