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 Often the credit reporting agencies will have wrong or outdated items listed on your report.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.

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