Question:

What are FHA & HUD loan requirements?

Answer:

FHA & HUD loan requirements are the same statewide. HUD is the federal agency responsible for responding to America's housing needs.

FHA as a part of HUD plays an important role providing affordable loans to millions of low to average households. FHA loans are available through FHA/HUD approved lenders.

FHA & HUD Loan Requirements

Down payments are as low as 3%. Low to average income and credit are satisfactory to get a FHA/HUD loan, however your credit history is of great importance for determining whether you will be approved for a FHA loan.

Requirements are most stringent regarding 2-year steady employment history with income that is able to cover the mortgage payments.

HUD loan requirements allow that FHA loan holders make greater payment to the principal so that the loan amortize faster. FHA/HUD loans can be repaid without a prepayment penalty.

FHA 203b is the most popular FHA/HUD loan. It is a fixed rate mortgage used to purchase an eligible home. HUD/FHA 203b can amortize over 10 to 30 years.

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