Question:

How to meet the FHA mortgage loan underwriting guidelines?

Answer:

Upon application for an FHA loan, you will be required to meet certain FHA mortgage loan underwriting guidelines.

According to FHA guidelines, your PITI payment cannot be more than 31% of your gross monthly income. Debt to income ratio cannot exceed 43% of your monthly gross income. FHA ratios are much higher than most conventional loans qualifying ratios.

FHA mortgage loan underwriting guidelines require property appraisal.

Though the required down payment is relatively small, 3% of the purchase price, down payment gifts and assistance are allowed.

A stable 2-year employment record is required.

Under the FHA mortgage loan underwriting guidelines, borrowers with foreclosures from the last 3 years and bankruptcies from the last 2 years will be ineligible. Delinquencies on taxes and other federal loans will also disqualify the FHA loan applicant.

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