| FHA loans are not actually granted by the Federal | | | | payments, pension payments). They may not allow |
| Housing Authority. Instead they are insuring home loans | | | | you if you cannot prove to the lending officers that |
| using the federal government's money. Private lenders | | | | you have at least a constant flow of income |
| grant loans to borrowers which the FHA acts some | | | | (preferable rising). |
| sort of guarantor just in case the borrowers failed to | | | | 3. Another one is that your credit history should at |
| pay the loan. | | | | least show some good signs that you are a faithful |
| Most of the time, it is the Americans coming from the | | | | payee to your debts. You need to present billing |
| lower income brackets that can obtain FHA loans. This | | | | statements and other documents to prove it. But even |
| had been the main purpose as to why the FHA was | | | | though you have a bad credit history, you have two |
| created during the height of the Great Depression in | | | | years to clear up your debts or strike a deal with your |
| the 1930s: to grant loans to these people at very | | | | creditors. |
| affordable rates. That is why there are certain FHA | | | | 4. Bankruptcies are also a no-no in your credit report. |
| loan restriction to screen the applicants. | | | | The somehow acceptable 'bankruptcy age' would be |
| But despite the restrictions, almost everyone could get | | | | no more than two years. It should also show that you |
| a loan. But they are specifically given to the borrowers | | | | are now back on your own feet again and you have |
| coming from the lower income brackets. But of course | | | | came out of bankruptcy. If you have previous |
| for you to be eligible, you need to follow these | | | | foreclosures, it should not be of more than three years. |
| guidelines in getting your loan. The checklist below may | | | | 5. The loan amount that you can obtain cannot be |
| help you in determining if you can obtain one. | | | | more than 30% of your total monthly income. If you |
| 1. It is not a major requirement (because they allow | | | | are sure that you have passed the mentioned |
| unemployment claims as a down payment for your | | | | requirements above, keep in mind that they would only |
| loans!) but one of the FHA restriction is that you should | | | | approve your loan application if it is not over 30% of |
| be able to show at least a two years of currently | | | | your gross income. Otherwise, they would not grant it. |
| being employed. This is to make sure that you can pay | | | | Keep this in mind so that you'll have it approved. |
| your loan and that you have a stable job to support it. | | | | Above all, remember that FHA loan restriction are not |
| 2. If you do not have a job, you must be able to | | | | that strict but please do follow them. It is not a reason |
| present documents to prove that you have a | | | | for you to be lax. After all, rules need to be followed |
| dependable source of income (e.g Social Security | | | | right? |