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| What is the FHA loan limit? | |
| FHA loan limits vary throughout the
country, from $115,200 in low-cost areas to $208,800 in highcost areas.
The loan maximums for multi-unit homes are higher than those for single
units and also vary by area. Because these maximums are linked to the conforming loan limit and average area home prices, FHA loan limits are periodically subject to change. Ask your lender for details and confirmation of current limits. |
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| What are the steps involved in the FHA loan process? | |
| With the exception of a few additional forms, the FHA loan application process is similar to that of a conventional loan. With new automation measures, FHA loans may be originated more quickly than before. And, if you don't prefer a face-to-face meeting, you can apply for an FHA loan via mail, telephone, the Internet, or video conference. | |
| How much income do I need to have to qualify for an FHA loan? | |
| There is no minimum income requirement. But you must prove steady income for at least three years, and demonstrate that you've consistently paid your bills on time. | |
| What qualifies as an income source for the FHA? | |
| Seasonal pay, child support, retirement pension payments, unemployment compensation, VA benefits, military pay, Social Security income, alimony, and rent paid by family all qualify as income sources. Part-time pay, overtime, and bonus pay also count as long as they are steady. Special savings plans-such as those set up by a church or community association - qualify, too. Income type is not as important as income steadiness with the FHA. | |
| Can I carry debt and still qualify for FHA loans? | |
| Yes. Short-term debt doesn't count as long as it can be paid off within 10 months. And some regular expenses, like child care costs, are not considered debt. Talk to your lender or real estate agent about meeting the FHA debt-to-Income ratio. | |
| What is the debt-to-income ratio for FHA loans? | |
| The FHA allows you to use 29% of you income towards housing costs and 41% towards housing expenses and other long-tem debt. With a conventional loan, this qualifying ratio allows only 28% toward housing and 36% towards housing and other debt. | |