how to qualify
How realistic is it for you to buy a home today? For the experienced, qualifying for a loan is a familiar process of signing papers and verification of income. For the first time home buyer, it may seem to be an experience of excessive exposure of private information and constant questions about personal financial matters.
Knowing what a lender will require when qualifying for a home loan not only informs you of the expectations from a loan officer but empowers you to analyze yourself and your financial picture before the process begins.
The following sections look into the major areas of qualifying:
credit: general FHA guidelines regarding a person's credit history
income: covers the type of income HUD requires for an FHA loan
compensating factors: factors that may help a marginally qualifying borrower
common credit issues: more in-depth information regarding common credit problems facing many FHA borrowers
loan ratios: common loan, income and debt ratios that a borrower must meet in order to qualify for an FHA loan
funds to close: information on acceptable sources for a borrower's down payment and closing cost money.
