FHA Qualification ~ Hampton Roads Real Estate Ramblings

FHA Qualification

Sunday, November 30, 2008

Hello Hampton Roads:

"What do I need for FHA qualification?"
This is the question many buyers are asking in today's real estate market.


FHA loans are a popular choice among first time home buyers as well as seasoned home buyers.
As long as a person qualifies, anyone may use an FHA loan as long as he or she does not have more than 1 FHA insured loan
at a time.

Basic FHA qualification guidelines are as follows:

  • Consistent, steady employment for 2 yrs preferably with same employer.
  • Last 2 years Income should be steady or increasing.
  • Credit report should typically have less than two "30 day lates" in last 2 years.
  • Bankruptcy's must be at least 2 yrs old, with good credit since.
  • Foreclosure's must be at least 3 yrs old, with good credit since.
  • Your new mortgage payment should be approximately 30% of your gross income.

FHA is a popular choice among consumers because it offers the following:

Lower Downpayment and Closing Costs

  • 3.5% down payment (which can be gifted to the buyer)
  • 100% Financing option are available
  • Seller can contribute up to 6% to buyer's closing costs

Easier Credit Qualification Guidelines
  • No minimum FICO score or credit score requirements
  • Higher debt ratios than other loan programs allowed
  • Seasoning for bankruptcy 2 yrs
  • Seasoning for foreclosure 3 yrs

If you are interested in finding out more about what FHA loan financing or purchasing a home in the Hampton Roads area, please feel free to contact me.


___________________
For Your Real Estate Needs Visit: http://www.HamptonRoadsRealEstate.us