October 21, 2019

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Who Can Apply For An FHA Mortgage?

Who can apply for an FHA mortgage?

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.

Bruce Reichstein - Staff Writer

By Bruce Reichstein

January 17, 2018

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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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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