 TITLE: How to Qualify for an FHA Loan CONTENT: What Are the Requirements for an FHA Loan?\n------------------------------------------\nGovernment backing and mortgage insurance mean FHA loans can have more relaxed borrowing criteria than conventional loans. Here are some of the requirements to keep in mind when preparing to apply for an FHA loan:\n*   **FHA loans can only be used to buy a new or existing family home.** This includes homes with one to four units, certain condominium units and manufactured housing units on permanent foundation.\n*   **The property must be your primary or principal residence.** You can't use an FHA loan to finance a second home or vacation home,\n*   **The property must meet FHA appraisal standards.** This ensures the home is worth the amount of the loan, is livable and is expected to last at least as long as the term of the loan.\n*   **The size of the loan must adhere to FHA mortgage limits.** FHA loans are only available up to a certain amount, though the maximum varies by location since housing is more expensive in some areas of the country. You can find out the FHA mortgage limit in your area on the HUD website.\n*   **You must pay a mortgage insurance premium.** This protects the lender in case you are unable to repay your loan.\n*   **You need an established credit history.** Lenders review your credit report and scores as part of the mortgage application process to assess your creditworthiness and adjust loan terms accordingly. If you have a FICO score of 580 or higher, you might be eligible for an FHA loan with only 3.5% down. You could still qualify for an FHA loan if your FICO score is as low as 500, though it requires a larger down payment of 10%. To see where your credit stands, you can check your credit report for free through Experian.\n*   **You need verifiable income.** There isn't a set income requirement for FHA loans, but your lender will want to verify that you have steady income and can afford to make your monthly mortgage payments. Lenders might verify this by looking at your pay stubs, tax returns, bank statements or other documentation.\nIf you need assistance determining your eligibility for an FHA loan, find a HUD-approved housing counseling agency in your area. Their counselors can also help you navigate the application process. END