Question:

What to know about the FHA credit qualifications?

Answer:

The FHA credit qualifications are the easiest to abide by compared to any other loans allowing for less than 5% down payment. Generally, there is a 2-year steady income and employment requirement; credit report should have less than two one-month late payments for the last two years; bankruptcy and foreclosure have to be at least two years away; and the FHA mortgage payment should be around 30% of your income.

If you do satisfy the FHA credit qualifications right away, do not despair. With some effort you could improve at least your credit report. Ordering a free credit report and seeing what is on it is crucial if you would like to improve your credit history. Often the credit reporting agencies will have wrong or outdated items listed on your report. You should make every effort to get your credit report updated to satisfy the FHA credit qualifications.

Usually, it is the two-year steady income and employment requirement that is difficult to cover with the FHA credit qualifications requirements.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Why: Find your next home and save money.
Link: Search thousands of foreclosures. Free 7-day trial.
Link this QnA Print del.icio.us Digg
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA:

Common misspellings: mortage and morgage