 TITLE: How to Get an FHA Loan CONTENT: Who Qualifies for an FHA Loan?\n------------------------------\nThere's no way to know if the lender will approve you for an FHA loan until you apply. However, you should be mindful of these general requirements for this loan program:\n*   **Valid Social Security number**: The lender will ask for your Social Security number to help confirm your identity when you apply.\n*   **Verifiable income**: The lender will request pay stubs and tax returns to confirm your earnings. You may also have to provide bank statements to show you can afford closing costs, the down payment and your monthly mortgage payments.\n*   **A credit score of at least 500**: If you'd like to make the minimum down payment of 3.5%, you'll need a score of 580. But if you can provide a 10% down payment, you may get approved with a score as low as 500. You can check your free Experian FICO® Score☉ to see where you stand and if your credit could qualify you for an FHA loan. If it's not quite where it needs to be, take steps to improve your credit score to give yourself the best shot at getting approved for an FHA loan with a competitive interest rate.\n*   **Minimum down payment of 3.5%**: Your credit score will dictate whether you can put down the minimum. You will need to put down at least 10% if your credit score is between 500 and 579.\n*   **Mortgage insurance premium**: Mortgage insurance equal to 1.75% of the loan amount is due at closing, and can be financed. An additional 0.45% to 1.05% of the loan amount is charged annually and added to your monthly payments. If your down payment was under 10%, you'll be required to pay mortgage insurance for the life of your loan (unless you refinance).\n*   **Debt-to-income ratio (DTI)** **that does not exceed 43%**: Your DTI measures how much of your monthly income is used to pay debt. So, if you earn $5,000 per month and your minimum debt payments total $2,000, your DTI ratio is 40%. Ideally, you want to keep your mortgage payment under 36% of your monthly income. It's possible to be approved for an FHA loan with a DTI that exceeds 43% with certain compensating factors such as a high income or excellent credit scores.\n*   **No recent foreclosures**: You cannot qualify for an FHA loan if you have foreclosures within the past three years.\nSome lenders have overlays, which are additional requirements borrowers must meet to qualify for an FHA loan. Inquire with the lenders you're considering to learn more.\nYou can also contact a HUD-approved housing counseling agency in your community to assess your FHA loan eligibility or learn more about the homebuying process. END