It’s easier to qualify for an FHA mortgage than a traditional loan. However, not everyone is approved.
Here’s what you must provide to make the cut:
- Basic personal information (name, social security number, etc.)
- Addresses for your residence(s) during the last two years
- Information about your employers for the last two years
- W-2 forms for the last two years
- Account information (any checking or savings accounts you hold)
- Details on any outstanding loans (car loans, student loans, etc.)
- Details on your current holdings (real estate, other valuables)
- Your current gross monthly salary
- Paycheck stubs
- Personal tax returns for past two years
- Credit report
- An acceptable debt-to-income ratio (29% or less mortgage payment to effective income or 41% total fixed payment to effective income)
- A down payment of 3% or more
- Minimal closing costs
If you cannot meet these requirements, you may want to wait until your financial situation approves. Alternatively, you may be able to qualify for another type of borrowing such as seller financing or temporary hard money loans.
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