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FHA Loan Reader Questions: FHA Loans For Retired People


A reader asks, “Have been trying to get my Freddie Mac loan reduced for 16 months with no good results.  Can a retired person get an fha/obama loan if they have excellent credit, no debt and low income?”

The answer to this question really depends on more information. The FHA itself does not have a minimum income requirement for FHA refinance loan approval. Instead, the FHA guidelines state that the borrower’s debt-to-income ratio would be a factor in some kinds of refinancing.

The term “low income” itself is very relative–what might seem to be low income for some is perfectly acceptable in other cases. A borrower with good credit and a low debt-to-income ratio may be perfectly able to qualify for an FHA mortgage assuming other qualifying factors are also met.

The key to answering a question like this? Speaking to a lender about an FHA refinance loan and seeing what the results of that conversation are based on all the qualifying details.

It would be impossible to say, in this case, whether the borrower is or is not qualified. In a general sense, with enough income and without the additional burden of a high debt-to-income ratio, an FHA refinance loan could be well within a borrower’s reach…but it all depends.

Never assume you can’t qualify for an FHA loan or FHA refinance loan unless you have been told so by an FHA rep or a loan officer.

Even when the bank turns you down, it’s important to know the difference between not meeting one particular lender’s standards and not being eligible for the FHA loan program at all. If you aren’t sure which applies in your particular case, contact the FHA directly at 1-800 CALL FHA to discuss your situation in detail.

Do you have questions about FHA loans or refinance loans? Ask us in the comments section.

Joe Wallace - Staff Writer

By Joe Wallace

April 19, 2013

Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.

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FHANewsBlog.com was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

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