What are the FHA Loan Requirements?

The basic minimum requirements for an FHA loan. These requirements cover a wide range of factors, and they are subject to change as the FHA adjusts their rules. However, FHA requirements generally include a minimum credit score, a down payment, specific loan terms, and mortgage insurance. They can also include limits on gifts for down payments.

What is FHA One-Time Close?

The maximum amount that you can borrow using a loan supported by the FHA. The limits are set by county, so properties in high-cost areas, such as New York or San Diego, have higher FHA loan limits than low-cost areas such as rural counties.

What are the FHA Minimum Property Standards?

The maximum amount that you can borrow using a loan supported by the FHA. The limits are set by county, so properties in high-cost areas, such as New York or San Diego, have higher FHA loan limits than low-cost areas such as rural counties.

What is the Federal Housing Administration?

The Federal Housing Administration, also known as the FHA, is a government agency under the guidance of the Department of Housing and Urban Development. The FHA performs many functions to encourage affordable homeownership in the United State, including insuring loans that meet specific guidelines set by the administration.

What is Debt-to-Income Ratio (DTI)?

A ratio that states the amount of money owed compared to income. Calculated monthly, it is used to help make lending decisions.

What are Conventional Loans?

A mortgage that is not administered, supported, or insured by a government agency. Conventional loans can “conform” to government guidelines, but they are by definition not supported or approved by a specific agency.

What are Closing Costs?

The fees that are paid at the end of a real estate transaction. They can include real estate commission, fees for an attorney, title search, and title insurance payments (if paid upfront).

What is a Bank Statement?

A record of the amounts currently held in a bank account. Most bank statements will have information on the amounts deposited and withdrawn, and they are often used for mortgage and refinancing approval to demonstrate borrower income and savings.

What is an Approved Lender?

A lender that has been approved to service loans provided or backed by a specific organization. In the case of an FHA Streamline Refinance, “approved lenders” are approved by the FHA to administer the Streamline program.