How to Qualify For a FHA Home Loan

Current home owners needing to refinance and first time home buyers can qualify for a FHA home loan quite easily if certain requirements are met. Although FHA generally looks at the overall credit profile and not just credit score there are still some basic requirements a borrower has to meet. One of the most important is the mortgage has to have been paid on time for the last 12 months.

FHA loans can qualify a borrower with little or no credit history as well by using alternative credit. This can be done by supplying 4 types of monthly bills paid on time for one year. Examples of alternative credit include: rental history, electric bill, cable bill, cell phone bill, or any other type of account that is paid monthly.

To qualify for a FHA home loan, the property must pass certain FHA inspections.

FHA loans also allow for a non-occupant co-borrower to help you qualify for a loan. You can qualify using the co-signer's income if your income is hard to document.

3% to 3.5% of your own funds are required for a down payment for an FHA loan. These funds can be from a gift, retirement account, or any other asset account.

» DISCLAIMER: The information contained in this article on 'How to Qualify For a FHA Home Loan' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.