| an FHA loan and do I qualify? | | | | with schedules and W-2s as well as the past two |
| In 1934, Congress established the federal housing | | | | months of pay stubs are used to establish your |
| administration. This agency built the foundation for | | | | income. Your monthly gross income (before taxes) is |
| more affordable loans, enabling many Americans to | | | | used to determine the loan amount you can qualify for. |
| buy a home with little money down and low interest | | | | Your housing ratio should not exceed 29% of your |
| rates. The government insures lenders against | | | | monthly gross income. This means that the amount |
| borrower default on FHA loans, which reduces the risk | | | | you pay each month to cover the principal, interest, |
| to lenders and allows them to offer lower interest | | | | taxes, and insurance for your home divided by your |
| rates. Additionally, the FHA has set fairly liberal | | | | monthly income should not be greater than 0.29. |
| underwriting guidelines that make FHA loans available | | | | Your total debt ratio should not exceed 41% of your |
| to a large group of people. This high demand also | | | | monthly gross income. This means that your mortgage |
| helps keep the interest rates low. | | | | payment, auto payment, and any other debt lasting |
| If you are looking to buy a home with little money | | | | more than 10 months divided by your monthly income |
| down, an FHA loan may me right for you. To help you | | | | should not be greater than 0.41. |
| know if you could qualify for this type of loan, consider | | | | If you have filed for bankruptcy, you must be at least |
| the following guidelines: | | | | one year into payout before you can qualify for an |
| Income Qualifications | | | | FHA loan. |
| The past two years of complete income tax returns | | | | |