June 4, 2020

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FHA Loan Qualifications: A Reader Question

088A reader asks, “What are the qualifications and the process to start a FhA loan?”

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.


Joe Wallace - Staff Writer

By Joe Wallace

February 24, 2015

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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About FHANewsBlog.com
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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