August 22, 2017
Who can apply for an FHA mortgage? The answers to this question-and yes, there are several parts-may surprise you. One aspect of the answer involves whether or not the applicant is of legal age, and another has to do with credit scores. Who is eligible to apply for an FHA mortgage?
FHA Loans Are For Legal Adults
According to HUD 4000.1, the FHA loan handbook, “The Borrower must be old enough to enter into a mortgage Note that can be legally enforced in the state, or other jurisdiction, where the Property is located (‘State Law’). There is no maximum age limit for a Borrower”.
FHA Loans Are For Those With Social Security Numbers
HUD 4000.1 requires all applicants to provide Social Security Numbers to the lender. However, there is no requirement for citizenship, as we’ll discover below.
FHA Loans Are Not Restricted To U.S. Citizens Only
HUD 4000.1, page 133 clearly states that U.S. citizenship is not a requirement for an FHA mortgage. However, legal residency IS a requirement. Both lawful permanent resident aliens and lawful non-permanent resident aliens are allowed to apply for FHA mortgage loans. Proof of work status or other documentation may be required.
According to the FHA/HUD official site, “The Mortgagee must determine the residency status of the Borrower based on information provided on the mortgage application and other applicable documentation. In no case is a Social Security card sufficient to prove immigration or work status.”
FHA Loans Are For Financially Qualified Borrowers
FHA mortgages require a minimum FICO score of 580 for maximum financing. Individual lender standards may include higher FICO scores, but the FHA minimums include permission for the lender to offer mortgages to applicants with FICO scores between 500 and 579 with a 10% down payment requirement. Again, lender standards in this area may be higher.
FHA loans Are Not Restricted To Certain Types Of Applicants
You cannot earn “too much” to qualify for an FHA mortgage. FHA loans are not targeted at the economically disadvantaged, and they are not specifically designed for “first time home buyers only”. Any applicant who financially qualifies may apply, regardless of whether a home has been purchased before.
Talk to a loan officer about your FHA home loan needs to find out what kind of mortgage might be right for you. You may be surprised at your options, including FHA condo loans, new construction loans, manufactured home loans, and more.
Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for FHANewsblog.com where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.
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