FHA Loan Requirements

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We are always getting asked what the FHA Loan Requirements are when we discuss FHA loans and current mortgage rates. Therefore, we have listed a series of requirements you need to fulfill in order to qualify. The basic requirements are the same but the specific numbers for your situation will vary based on the lender and the state you are in. As you may already know from our page about FHA Loan Limits, the state and even the county you reside in can and will determine the loan limits as well as the requirements to qualify for a loan. The most general figures are listed below. If you are interested, it’s best you speak to an FHA approved lender to get the specific figures:

  • Type of residence:
    The program covers single family homes, 2-unit, 3-unit, and 4-unit properties, as well as condominiums.

  • Maximum FHA mortgage loan limits:
    The amount of the mortgage loan must not exceed statutory limits. You can look up on our FHA Loan Limits page.

  • Minimal cash investment:
    One of the big benefits of the FHA program is that you can own a home with a minimal cash investment. The maximum loan-to-value ratio is 97%, meaning you may only need to put down 3% to qualify for an FHA insured loan, which is great for both, first-time home buyers and repeat buyers.

  • Income requirements:
    You must have at least two years of steady employment with increasing income. Also, your mortgage payment may not exceed 30% of your gross pre-tax income.

  • Minimum FICO score:
    The borrower must have a minimum FICO score of between 580 and 620, depending on the lender, as well as less than two 30-day late payments. If you have a foreclosure or bankruptcy, it must be at least three (foreclosure) or two (bankruptcy) years old with perfect credit history since those events took place.

  • FHA Appraisal requirements:
    Your future home will require an appraisal from a government-approved appraiser (which is typical in general, not just for FHA loans). Major issues (e.g. a leaky roof) need to be repaired. FHA appraisals of a property are on record for 6 months.

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