FHA Eligibility Requirements are Important

FHA eligibility requirements are important for you to know. I hear clients talk about wanting to go FHA because they have had credit problems, but don’t be so quick to jump on the FHA bandwagon if your credit is bad.




It’s a misnomer that FHA loans are for those with bad credit, but they aren’t. FHA is an option that engages in what we call commonsense underwriting. FHA eligibility requirements don’t allow for credit that is in the trash heap, but they won’t really hold the past against you either.



FHA eligibility requirements are going to hold your credit score as somewhat important. FHA is looking for a score of at least 620 for you to do a purchase with just 3.5% down, but keep in mind that although they say yes, the lender may still say no.



FHA eligibility requirements are not the end of the road, for many lenders they are just the beginning. While many lenders encourage you to go FHA, they play by their rules, and with all of the defaults they aren’t so quick to have you sign the papers just because you can.



For more information on FHA eligibility requirements, go to http://www.fhaloansnow.net/ .

-Mayer Dallal