| The Federal Housing & Urban Development | | | | One might also apply for the FHA loan is they want to |
| Department (HUD) has come up with various financial | | | | restrict their monthly mortgage amount to 31% of their |
| benefits for the home owners in the 2009 Stimulus | | | | gross monthly income. Then another clause mandatory |
| Package. Unlike the conventional housing loans, now | | | | for the borrower would be that the sum of all debt |
| the requirements have been made very simple. They | | | | payments (like car payments, credit card, etc.) can not |
| are all based on affordability of the housing in the long | | | | exceed 55% of their pre tax income. |
| run. The benefits would reach the home owners in the | | | | . The basics |
| form of tax credits, grants and loans. The department | | | | In order to get the FHA loan some basics apply, like |
| looking after the housing loans under the scheme is | | | | the person should be above 18 years of age and a US |
| termed as Federal Housing Administration (FHA). | | | | citizen. The house in consideration must be located in |
| In order to qualify for the FHA loan, the following are | | | | US only. |
| the requirements laid down by the 2009 Stimulus | | | | . The credit scores |
| Package: | | | | Now the credit scores of the borrower are not that |
| The Mortgage Amount | | | | important. Yet, you must give the right & complete |
| This clause seems to have replaced the equity | | | | information while applying for the housing loan. Else, |
| requirement. Earlier the home owners could apply for | | | | your application would get rejected. |
| housing loan modification only if they had 20% or more | | | | You can seek further guidance on the requirements of |
| equity holdings in the house. Now if their mortgage | | | | getting the FHA housing loans from the HUD |
| amount is more 105% of the actual value of the home, | | | | counselors. They would help you to get or save your |
| they can apply for the modification. The equity holding | | | | house with out any fees. Their fee is being paid by the |
| is not important. | | | | Federal Government under the Stimulus Package. |
| . The Income Ceil | | | | |