First-Time Buyer’s Income Requirements For FHA Home Loan
Do you already have all the necessary requirements for FHA home loan to get that dream house of yours?
Buying your dream house would take you a lot of time and budget preparation and your will to finish all the papers needed especially when you didn’t meet the needed requirements for your FHA Loan.
The Federal Housing Administration FHA is a government agency created by the U.S. Department of Housing and Urban Development (HUD) to help increase homeownership since 1934. The Federal Housing Administration offers loans to guarantee families that they can purchase a home.
Here are the following requirements on how to apply for FHA Loan:
1. Meet The Requirements
Getting an FHA loan is easier when compared to getting conventional loans. You must be able to pass all the requirements needed to get your FHA Loan.
If not all, there is a tendency that you can still get an FHA Loan when you meet most of the requirements and you can prove extenuating circumstances.
- You are at least 18 years of age.
- You must have a valid Social Security Number.
- You should have a steady employment history for the same employer for the past 2 years.
- You must be able to prove your income with recent tax returns, W2’s, and paychecks.
- Your maximum debt should be 43% debt-to-income ratio and cannot be within 2 years of your FHA case assignment date.
- You must intend to live the property that you are buying since it is a primary residence occupancy.
- You must have the downpayment for your loan. (The minimum requirement is to pay at least 3.5% of down payment)
2. Meet With Your FHA Lender
You must find an approved FHA mortgage lender or brokers in your area. If you want quick and easy financing that’s right for you, Golden Eagle Mortgage Group can greatly attend to your financing needs!
3. Provide Necessary Documents
You must supply documents that can prove your personal information, employment records, and tax documents. You will be needing the following:
- Addresses you have lived for the past 2 years
- Names and addresses of your employers for the last 2 years
- Your gross income for the last 2 years
- Valid W2 forms for the last 2 years
- Income tax forms for the last 2 years
4. Complete The Form 1003
You need to fill out the Uniform Residential Loan Application (Fannie Mae Form 1003) as carefully as you can and provide factual information only. If you don’t know the answer, ask help from your lender to get clarification on these things as filling out of false information on federal documents is a crime.
5. Get The Property Appraised
Make sure that the appraiser is licensed to provide the lender the necessary details needed before buying the property. The appraiser will check if the property is in compliance with health and safety regulations.
He/she will also determine the property’s value and will send an estimate to the FHA for approval. If the estimated appraised value is within the range of the mortgage amount requested, you will move to the next FHA loan process.
However, if the estimated appraised value is lower than your mortgage amount requested, your lender will have to disapprove the process.
6. FHA Loan Approval
The mortgage lender will evaluate your FHA application. He/she will review all the necessary financial details and your personal information. If all your documents and financial capacity is approved, then you’re good to go!
Many people dream of having their own home. If you just prepare the proper documents and have the right amount of budget, you will probably get your FHA approved in no time!