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FHA Loan Requirements                                                                                                                        

FHA loan programs reflect the Government's commitment to expanding homeownership through reduced down payment requirements and relaxed underwriting requirements when compared to a conventional loan. I am including the FHA Loan requirements here. Email FHA loan requirements questions.

FHA has recognized many areas as high housing cost areas and has increased the maximum FHA loan amount to $362,790 increasing the number of homes which qualify for an FHA loan. They are:

  • One Family        $362,790
  • Two Family        $464,449
  • Three Family     $561,411   
  • Four Family       $675,000

The FHA loan program is an outstanding choice for first time homebuyers because the FHA loan program requires only 3% cash (which may be a gift) and the FHA loan requirements are more forgiving of past credit issues. We look at the last two years of your credit history. If there are problems, we can overcome them with explanations and supporting documents. Never rule yourself out of qualifying for an 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 you are refinancing an FHA loan please go to my refinance center.

There are some credit issues that an FHA loan requires time to pass before you can qualify for an FHA loan.

  • Two years from the date of discharge for a bankruptcy
  • Three years from the date of foreclosure

FHA has a requirement to pay off any outstanding collection accounts in full before closing. If you have had some credit difficulties in the past, FHA compensating factors can often get your FHA loan approved.


  • Lower required down payment
  • FHA loans are assumable* with a qualified borrower
  • Higher qualifying ratios of 29% for housing and 41% for total indebtedness on existing construction; 31% for housing and 43% for total indebtedness on new construction
  • Flexible underwriting requirements
  • Gift funds for down payment and closing costs are allowed
  • Up-front Mortgage Insurance Premium can be financed
  • Seller can contribute up to 6% of purchase price toward closing cost and discount points
  • Charges on conventional loans such as tax service fees, underwriting fees, copy & courier fees are not allowed to be charged to the buyer with FHA loans
  • The FHA ARM has the best features on the market with a 1% annual interest rate cap and a 5% lifetime cap.



They offer an adjustable rate mortgage 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 want to buy more home.

For more information go to the FHA Streamline Refinance page. I also have a Free report "Buying your First Home" available by email.

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 documentation requirements.

Be sure to visit the Mortgage Library.    I also have a report "Buying your First Home" available by email.

Learn more about improving your credit scores

I have an article "Buying your home in 2008" by email explaining negotiating strategy in today's market.

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.

FHA Loan RequirementsPrequalify for your FHA Loan. 


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