We get questions like these quite often. Some people ask because the assume that an FHA loan is for a first time home buyer, or an economically disadvantaged house hunter only. But this is not true–any qualified FHA loan applicant could be approved for an FHA mortgage regardless of whether he or she has purchased a home before or any notions of being at an economic disadvantage.
There is no minimum or maximum income level for FHA loans–instead, the lender will measure a borrower’s debt-to-income ratio, review credit scores and other financial qualifications. A borrower with a 580 or better FICO score is technically eligible for maximum FHA loan financing, though a lender may have a higher standard.
The process to get started on an FHA loan is similar to any other type of home loan, except in this case the borrower will need to find a lender who participates in the FHA program in order to apply for the FHA loan.
The borrower would find a home, make an offer, apply for the loan and go through all the other usual steps to getting a home loan. Borrowers who need help preparing or understanding the home loan process can call the FHA directly at 1-800 CALL FHA to request a referral to an FHA/HUD approved housing counselor for advice and assistance.
Do you have questions about FHA home loans? Ask us in the comments section.