Today's Requirements For FHA Loans

Today's FHA Mortgages usually require that theBy law, FHA Lenders cannot insure loans that exceed
borrower have a minimum of a 620 middle fico score.certain amounts based on the metropolitan area or
This requirements is not very old and FHA home loanscounty in which you live. The highest maximum FHA
of past years did not have any credit scoremortgage right now is $729,750. The lowest FHA
requirement. When your credit is being considered,lender maximum amount available in any county is
many different factors will be looked at. Some of$271,050. the second factor is the maximum FHA
those factors are what type of credit accounts youFinancing. Depending on the state where the property
have held (i.e. mortgage, auto, credit cards, etc.). Youris located, FHA Loan Requirements state that the
past willingness to make payments on time will bemaximum financing will be 97.75% of the lower of the
closely examined.purchase price, the appraised value of the home or the
When evaluating borrower income, current FHA Loanamount you are refinancing plus closing costs. If you
Requirements state that your monthly housing costsare refinancing and taking cash out, the loan will be
(mortgage principal and interest, property taxes andlimited to 85% of the appraised value.
insurance) must meet a specified percentage of yourYou must have a valid Social Security Number (SSN),
gross monthly income (31% ratio). Your crediteven if you are not a U.S. citizen. An individual Tax
background will be considered. You must also haveIdentification Number (ITIN) is not an acceptable
enough income to pay your housing costs plus allsubstitute for a SSN. U.S. citizenship is not required for
additional monthly debt (43% ratio). These percentageseligibility. When you indicate on your loan application
may be exceeded with compensating factors.that you hold something other than U.S. citizenship, the
The maximum loan amount under today's FHA Loanlender must determine your residency status from the
Requirements is determined by two separate factors.documentation you provide.
The first factor is the Maximum FHA Loan Amount.