Who can apply for an FHA mortgage? The answers may surprise you; there are misconceptions about FHA home loans that many have to this day, including who is eligible to apply and when. Do you know if you are eligible to apply for an FHA loan or refinance loan?
FHA Home Loans Are For All Income Brackets
There is no such thing as earning too much money to qualify for an FHA home loan. Some mistakenly believe that there is a maximum income for FHA home loans that excludes people who “earn too much”. This is not true. There is no maximum income limit for an FHA home loan.
You will be required to furnish bank statements, pay stubs (electronic or otherwise), and tax documentation to establish your income, but there is no fixed dollar amount required to qualify for a loan where your income is concerned.
Your lender will instead compare your income with your monthly debt to determine if you can afford the loan.
FHA Loans Are For First-Time Home Buyers AND Those Who Have Owned A Home Before
There is a common misconception that FHA home loans are only for those who have never purchased a home before. This is not true. You can buy a home with an FHA mortgage even if you still own another property, but certain requirements apply. (See below.)
FHA Home Loans Are For Owner/Occupiers
There is an occupancy requirement for FHA home loans. Whether you have never purchased before or are getting ready to buy another property, you will be required to occupy the home as your permanent, main residence within 60 days of closing.
FHA Home Loans Are For Homes That Are Primarily Residential In Nature
FHA mortgages require the residential use of a property to be purchased with an FHA mortgage to be its’ primary function. You are allowed to purchase a mixed-use property as long as the residential nature of the home is not subordinate to the non-residential use.
Zoning and related issues are handled at the local level; FHA home loan rules do not directly address individual zoning laws except to say that FHA loan rules do not override local regulations.