Fha Home Loan Requirements

By Author: J.J. Yong
Total Articles: 963
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Since 1930's, FHA loan programs were here, to fulfill the dream for some low-to-moderate income families to own a house of their own. Today, FHA loan programs have gained its popularity to a wider range of audiences, primarily because of its competitive rates and flexible credit requirements with averagely low down payment requirements which can be as low as 3.5%.

The FHA insures home loan mortgages. They are actually not lending any money to the borrowers. They solely provide the mortgage insurance to protect lenders against the risk of default on mortgages, thus making these loans more secured. A mortgage lender who works with the FHA possess a higher chance to approve your home loan application because they know that with the FHA protection, if the borrower default, FHA will cover the loss necessarily.

With this FHA insured loans, many potential home buyers are able to take advantage of the flexible credit terms which can be ranging from 5 years to 30 years. The FHA guidelines for loan qualification are the most flexible of all mortgage loans.

What are the basic requirements to get a FHA House loan?
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... - Earn a consistent income from a reliable source with a steady employment record for the last 2 years
- Free from Bankruptcy for at least the last 24 months
- Proven records of timely payment made on their previous debts for the last 12 - 24 months
- Proven records of income tax payment for the last 2 years

FHA loan is most suitable for these groups of people:
- One which have faced certain credit problem, and found it impossible to get any conventional loans to become a home-owner
- Fresh college graduate who has just started to work and don't have much down payment
- New home-buyer of a new borrower who wanted to take advantage of the low interest rate and the adjustable rate house loans from the FHA
- One who request for a more flexible credit terms such as those for 10, 20 or even 30 years of loan terms are available.
For more information about fha interest rate home loan and fha home loan requirements, visit HomeEquityLoansAdvice.com.