Fha home Loan CriteriaHousing Loan Fha Criteria
An FHA loan applicant must have at least two years of permanent service and at least two years of historical experience at the date of the loan request. Employments must be checked so that the debtor submits salary statements, previous years' declarations and evidence of other revenue streams.
It must be indicated in the borrower's job record that he has received approximately the same wage or salary increase in the last two years. Recipients with an incidental or brief job record are not entitled to FHA loan. Loan histories of the debtor must satisfy the criteria of the individual creditor as well as some FHA creditworthiness criteria.
Previous Chapters 7 insolvency must be at least two years old, and the debtor must have a record of good loans for at least two years after insolvency, says HUD. A petitioner with insolvency under Section 7 less than two years before filing may be considered if he can demonstrate that the insolvency is due to conditions beyond his reasonable control and that his creditworthiness has been stable since then.
Insolvency under Section 13 must have been in good condition for at least one year. In order to obtain a new FHA loan, a debtor must obtain prior approval in writing from the insolvency administrator as part of a redemption schedule under Section 13. Earlier enforcement measures against the borrowers must be at least three years old at the date of the FHA loan request.
FHA demands that the recalculated credit per month be no more than 29 per cent of the borrower's overall GNI for most FHA mortgages, HUD says. Adding the applicant's entire actual month's indebtedness to the approximately month's mortgages payments means that the amount must be less than 41 per cent of the applicant's GNI to qualify for an FHA loan.