What is the FHA program’s minimum downpayment?
The FHA has a minimum down payment of 3.5%. However, depending on your credit score it may be as high as 10%.
Is the FHA loan program limited to first-time buyers?
No, the FHA loan program can be used by first-time buyers and repeat buyers.
Is there a minimum credit score for the FHA loan program?
An FHA loan requires a credit score of 580 or higher to qualify for the minimum down payment. Borrowers can still qualify for an FHA loan as low as 550 but the required down payment may be higher.
If you are without a credit score, your lender may accept “alternate” tradelines to establish a credit history. Ask us about our alternate tradeline loan programs.
What’s the maximum debt to income allowed by FHA?
There are no strict income requirements, but your debt-to-income ratio should be no higher than 43-45%. In some cases with compensating factors, debt ratios can be as high as 55%. You should also be able to demonstrate that you have been employed steadily for at least two years.
Can you qualify if you’ve filed for bankruptcy?
Yes. Borrowers can still qualify for an FHA loan if they have had a bankruptcy in the past. The bankruptcy must be at least two years behind you.
Keystone Alliance Mortgage offers FHA loan solutions and is available to discuss with you whether or not an FHA home mortgage may be an option for you.
Speaking to a loan officer can help answer this and more if you are considering an FHA home loan. If you would like to know more, start by answering a few questions to help us determine if you qualify.