What exactly does a potential borrower need to be in order to get this FHA mortgage approved? Here are the major qualifications that every home owner needs to consider before considering going for an FHA mortgage.
* There should be no more than two thirty day delinquent payments within the past couple of years found within the borrower’s credit history report. Obviously no lender wants a borrower that makes late payments. But in this case, there is an allowance for only two such instances.
* The borrower should have in his credit history, at least two consecutive years of consistent income preferably without changing employers. They look for this in order to see if the borrower has the capability to stay employed. Having a pay increase would even be a better sign for them.
* The borrower’s monthly mortgage dues should not constitute more than thirty percent of the current gross monthly salary or income of the borrower.
* Bankruptcies are one of the most dreaded things that brings at one’s credit score for a long time which is why those who have bankruptcies lose hope of ever getting such loans. But FHA loans permit those with bankruptcies on their credit history just as long as the bankruptcy is at least two years old.
These are the FHA Loan qualifications on a very macrocosmic view. A lot of people want these loans because the qualifications are much easier to achieve especially if they are in dire financial straights.
