FHA loans are the easiest type of real estate mortgage loan to qualify for. The FHA guidelines for loan qualification are the most flexible of all mortgage loans that require less than 5% down payment.

Following is the basic FHA loan qualification guidelines.

• Two Years of steady employment, preferably with same employer.
• Last two years Income should be the same or increasing.
• Credit report should typically have less than two thirty day lates in last two years with a minimum credit score of 620 or higher or in some cases no credit score at all.
• Bankruptcy's must be at least two years old, with perfect credit since discharge.
• Foreclosure's must be at least three years old, with perfect credit since.
• Your new mortgage payment should be approximately 30% of your gross (before taxes) income.

These are some of the most basic of FHA guidelines for qualifying for a FHA loan. If you have answered yes to most of these statements, you probably qualify for a FHA mortgage loan.

Just a reminder for all of you first time homebuyers – please keep in mind that the government’s First-Time Home Buyer Tax Credit program expires November 30, 2009.

It can take up to 6 weeks to close on a home, so you may only have 2 weeks, at best to find a home. Specifically, if you are not under contract by October 16th, you may have little chance of meeting that deadline.

The clock is ticking. If you’re planning to use the First-Time Home Buyer Tax Credit, the time to act is now. Call us today to set up showings to find your home before it is too late.

This is a fun and easy-to-understand web video that provides a short description of the first time homebuyer credit.




Visit our Buyer’s section to get additional information on the first time homebuyers tax credit as well as a search tool to find your next home.