FHA Loan Guidelines
FHA loan guidelines reflect the Federal Government's commitment to expanding homeownership and home buying opportunities through reduced down payment requirements, mortgage insurance charges, and relaxed loan guidelines when compared to conventional loan guidelines. I am including the FHA Loan Guidelines here. Email with questions on FHA Loan Guidelines
FHA has recognized Washington DC and other areas as a high housing cost area and has increased the maximum one family home mortgage amount to $362,790 increasing the number of homes which qualify for FHA insured financing. Nationally, the limits are as follows:
High cost area
The FHA loan program is an outstanding choice for first time homebuyers because FHA loan guidelines require only 3% cash (which may be a gift) into the transaction and the FHA Loan guidelines are significantly more forgiving of past credit issues. We will look specifically at the last two years of your credit history. If there are some credit problems, we may be able to overcome them with sufficient explanations and supporting documents of why the issues occurred. Never rule yourself out of qualifying for FHA loan because of credit, prequalify and have me review your credit. I have more information on FHA credit requirements available
This page is focused on the using FHA loan programs to purchase a home. If your interest is in refinancing an existing FHA or VA loan please go to my refinance center. For extensive information on the FHA 203(k) program to remodel a home please see my renovation loans page.
There are some credit issues that we must allow for a certain time to pass before you can qualify for a FHA loan. They are follows:
FHA loan guidelines require any outstanding collection accounts, judgments, charge off's be paid in full before closing. If you have had some credit difficulties in the past, FHA compensating factors can often get your loan approved.
If you currently have an FHA loan and are considering refinancing to lower your monthly housing cost there is a simple low cost " FHA streamline" refinance process which you should consider. One of the important features of the program is that the loan is assumable should you sell in the future. If interest rates rise, an assumable mortgage may be the difference between being able to sell your home or not.
An adjustable rate mortgage is available which allows many people to buy a home with very low payments and down payment requirements. Useful if you have a debt to income issue or just want to buy more home.
Streamline RefinanceStreamline refinances on insured mortgages have been permitted since the early 1980's. The basic requirements of a streamline refinance are:
Read more about FHA Loan Closing Costs
I have included a page on how to calculate your qualification ratios.
I have included a page on FHA loan documentation guidelines.
Learn more about improving your credit scores
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As a Certified Mortgage Planning Specialist, I offer an analysis of your situation today can make suggestions on how small changes in how your consumer and mortgage debt is structured today can have a life changing effect in the years to come. Read more about this free, no obligation service.