There are many myths and misconceptions about FHA home loans. One of them is brought up in our latest reader question in the comments section. A reader asks, “Do we have to be first time home buyers to qualify for an FHA loan?”
The simple fact of the matter is, anyone who meets the financial qualifications can apply for an FHA home loan.
You do NOT have to be a first time home buyer to qualify, and the financial qualifications include having a steady, dependable income that is likely to continue. Your debt-to-income ratio plays a part in loan approval, so potential borrowers who worry their bills are too high to qualify should contact the FHA or the loan officer about the rules covering debt/income ratios.
Borrowers who are second-time buyers are not penalized for not being in the “first time home buyer” category. Your ability to qualify for an FHA loan has much more to do with your FICO score, repayment history and other financial qualifications than whether or not you’ve owned a home before.
Borrowers should know that single-family, new purchase FHA loans do require you to occupy the home you buy with the loan as your primary residence or “main address”. This means borrowers should not expect to get approved for a single family FHA loan intended as an investment property. You can’t buy without intending to occupy under the FHA single family loan program.
Borrowers can qualify or pre-qualify online at www.FHA.com (a private company, not a government website) or get more information about the process and how it works.
Do you have questions about FHA home loans or FHA refinance loans? Ask us in the comments section.