The Basics of FHA Home Loans
Many of Associated Credit Union of Texas members, especially those wanting to purchase their first homes, want to know what an FHA loan is. FHA Loans are insured by the Federal Housing Authority (FHA), and are very popular among home buyers due to their less rigid borrowing requirements, making buying a house easier for first time home buyers.
FHA Home Loan Requirements:
- Minimum Down Payment
- Reasonable Credit Expectations
- Flexible Income Requirements
Why Are They So Great?
FHA loans are highly convenient in some situations. The most prominent appeal of the FHA loan is that it makes it easier to obtain a mortgage loan.
If you are planning to apply for an FHA loan, then you must be wondering what it takes to be eligible for one. The FHA home loan requirements include details regarding income, credit rating and other factors, but before any of the information is analyzed, the applicant needs to meet the basic requirements.
Basic FHA Loan Requirements
- Applicants must have a valid social security number
- They should have lawful residency in the U.S.
- They should be of legal age to sign for the mortgage
These basic requirements apply to the applicants and any co-applicants that may be listed on the loan application.
FHA loans are dependent upon the applicant’s credit score, Debt-to-Income (DTI) ratio, and other factors. To be eligible for an FHA loan, applicants must submit the following as part of their application:
- W-2 and tax return forms (past two years’ worth)
- Bank statements
- Debt information, credit cards, student loans and other bills
These are the points that make you eligible for an FHA home loan. Though there are several other steps to take into account when purchasing a home with an FHA loan, once eligibility has been established and the applicant has been approved, you are guaranteed the FHA mortgage.
Click here to learn more about FHA Loans or contact a member of our Mortgage Team to learn more about FHA requirements and apply today!