 TITLE: How to Get a Home Loan With Bad Credit CONTENT: FHA Home Loans\n--------------\nThe Federal Housing Administration (FHA), part of the U.S. Department of Housing and Urban Development (HUD), has a home loan program that can help consumers with poor credit. Under the program, the FHA won't actually lend you the money. Instead, it insures home loans, meaning the FHA will repay the lender if a borrower defaults on a mortgage. The lenders can therefore be more lenient about credit and income requirements.\nLenders need to follow the FHA's guidelines and requirements, though. To qualify for an FHA loan, you'll need:\n*   Proof of employment.\n*   A middle credit score of 580 with a 3.5% down payment, or 500 with a 10% down payment.\n*   Generally, your monthly debt payments can't be more than 43% of your monthly gross income (income before taxes), or 31% after including your mortgage and other home-related expenses, such as property taxes.\nThere are other requirements as well. For example, FHA loans have a maximum loan amount, which varies depending on where you're buying a home.\nIn general, FHA loans might be more expensive than conventional loans for buyers with good credit or who can afford at least a 10% down payment. However, the FHA route could be the better option if you have poor credit or can only afford a small down payment. END