How to Qualify for an FHA Mortgage Loan

The FHA offers a wide array of mortgage loans to qualified borrowers. Qualification for specific FHA mortgage loans may vary in detail from individual program to program. But access to an FHA mortgage loan is easier than conventional mortgage lenders.

Who qualifies for FHA Mortgage Loans?

Because of this administration's mission purpose, FHA mortgage loans are some of the most accessible mortgages on the housing market. The FHA is concerned with credit history, but more understanding of people with little or poor credit than conventional, private lending institutions. One of the most important qualifying marks when applying for an FHA mortgage loan is level of income relative to debt. However, FHA mortgage loans allow for higher debt/income ratios than most other lenders, making it easier for consumers with significant credit card debt to apply successfully for an federally insured mortgage loan. When tabulating an applicant debt/income ratio, the FHA simply wants to make sure that you make enough money to pay your mortgage each month.

The FHA does not take into account bankruptcies older than two years. Additionally, if an applicant does not have a substantial history with traditional credit, the FHA will consider alternatives such as school tuition, utility or cable television payments, child care, auto insurance, or accounts at furniture stores. Despite of their generous standards, FHA loan mortgages offer some of the more competitive home loan options on the market, especially for consumers with less than perfect credit.

Qualifications for Special FHA Programs

FHA offers multiple programs geared towards specific consumers. Some programs are very specific. Specific FHA mortgage loans are only available to select individuals who qualify and are aimed at improving housing stability nationally. But most types of FHA mortgage loans are broad, catering to the widest segment of the American population as is possible.

Specialized FHA mortgage loan offers include special fixed rates for members of the armed service or national guard. Additionally, the Home Equity Conversion Program allows elderly citizens over the age of 62 to access equity out of their home if they are in danger of foreclosure or find themselves in financial need to liquidate their real estate equity. And the Safe Neighborhood Action Plan, intended to help eliminate substance abuse and crime in high risk urban neighborhoods, is available for individuals who have already made or intend to make their homes in the nation's urban districts.