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FHA Loan Income Rules: A Reader Question

May 28, 2014

109A reader asks, “Whats the least amount of income for an FHA home loan?”

This is a common question, but the real question a borrower should be asking in these cases has more to do with how much money goes out in payment to financial obligations versus how much money is coming in.

That is known in lending circles as the debt-to-income ratio. The specific answer to the borrower’s question here is that there is NO minimum income requirement listed in the FHA loan rulebook.

“FHA’s mortgage programs do not typically have maximum income limits for qualifying, although you must have sufficient income to qualify for the mortgage payment and other debts.” That’ is a quote from according to a HUD publication titled “100 Questions And Answers About Buying a New Home.”

Instead, the borrower’s employment must be verified, which also includes a review of monthly income. The borrower’s total monthly debt–including the amount of the proposed mortgage–would be examined versus the borrower’s total monthly income. If the lender determines that the borrower cannot afford the loan based on those calculations, the loan would be denied.

If the lender determines that the ratio of debt to income is within standards, the loan may be approved provided the borrower meets other qualifying requirements including FICO scores, reliable debt repayment history, etc.

Again, there are no minimum income requirements, but FHA loan rules do state the borrower must be able to afford the FHA loan and his or her other financial obligations. The lender will make the calculations to determine the affordability of the mortgage.

Do you have questions about FHA home loans? Ask us in the comments section. You can get information about applying or getting pre-approved for an FHA loan at FHA.com, a private company and not a government website.


Joe Wallace - Staff Writer

By Joe Wallace

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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