Articles and news about FHA loans and HUD requirements. FHA loans are great for first-time homebuyers.

Category Archives: Debt Ratios

Commission Income and FHA Loans: A Reader Question

FHA loan down payment

How does commission income count when applying for an FHA mortgage? A reader asked us recently, “I was denied a mortgage because of a commissioned salary, even though Im full time and am guaranteed 15.75/hr. Interestingly, everything was all ready ...

Gaps In Employment, Reductions of Income: FHA Loan Rules

FHA loan rules in HUD 4000.1 for single family home loans and refinance loans include instructions for the lender on how to verify a borrower’s income and employment. There are several reasons why this verification must be made, but one ...

FHA Loan Rules For Part-Time Income

FHA loan rules require the lender to verify both employment and income. The lender must determine that a borrower’s income is both stable, and likely to continue for the purpose of making the mortgage loan payment. But what kinds of ...

Collection Accounts and FHA Loans

We’ve had some recent questions about home loans and collection accounts lately; in light of those questions it seemed like a good time to review the FHA loan rules on collection accounts as found in HUD 4000.1. The FHA loan ...

Second FHA Loans?

Is it possible for borrowers to apply for second FHA loans, resulting in paying on two mortgages at once? A reader asks, “Several months ago I relocated to another state over 400 miles away. To help offset costs I rented ...

FHA Loans And Community Property States

One of the most common questions we are asked in the comments section involves state community property laws, non-borrowing spouses, and their credit issues. Does an FHA loan applicant have to include a non-borrowing spouse’s financial data when applying for ...

The Debt To Income Ratio: FHA Rules In 2017

If you are thinking about your FHA loan options in 2017, one area to pay special attention to (especially over the holidays) is your debt to income ratio (DTI). This ratio is one of the most important factors in the ...

FHA Loans And Debt: A Student Loan Question

A reader asks, “I am a mother who is on a fixed income of $1600.00 a month in ft laud. my son is going to be the co borrower who lives and works in LA. Makes a good salary. We ...

General Income Requirements For FHA Loans

FHA loan rules include specific income requirements for all applicants. That can be an easy statement to misunderstand; FHA loans have no minimum or maximum income limits. Instead, the FHA loan rules state that a borrower’s debt-to-income ratio must be ...

Employment: FHA Loan Rules

A reader asks, “I am planning to apply for a home loan, in the next couple months. I am a recent college graduate that has been employed at my current job since May 2016 (just about 6 months). I am ...