The US Department of Federal Housing Administration has been supporting American citizens to purchase new homes and has supported people understanding the American dream of homeownership since 1934. The Federal Housing Administration has done this by extending advantages to families with low or mid-level income who would not be capable of qualifying for a traditional home loan. There are a number of FHA loan requirements Houston. However they are not as stringent as qualifications for a traditional home loan, so even if you have bad FICO score, it is still possible to be eligible for an FHA home loan.

Here are a number of the guidelines and requirements you will require to be aware of before you begin with home loan procedure:

REQUIREMENTS FOR CREDIT

According to FHA loan requirements Houston, a credit check on the borrower is a must. Your FICO score is a fundamental record of your financial past, and a pointer of how well you will be able to pay back in the future. While traditional home loans require that you should have a strong FICO score to be eligible for a home loan, the requirement for an FHA home loan is not that much strict. Even if you don't have a perfect FICO score or no credit, it is still feasible to qualify for an FHA home loan if you have a co-signer who has credit, even if they aren't going to live in the same home. In the case of a first time homebuyer, the FHA will enable a blood relative, for example, a parent, to co-sign for the mortgage without asking them to reside in the house with the first time homebuyer.

REQUIREMENTS FOR INCOME

When you are looking for an FHA home loan, your salary level will be considered as per the FHA loan requirements Houston. Although the Federal Housing Administration is there to support low and middle-income families, they should know that your income will be enough to afford your month to month and annual payments.

REQUIREMENTS FOR DTI

To stop homeowners from getting into a house, they can't bear the cost of, the FHA necessitates borrowers and/or their spouse to meet the criteria according to set DTI ratios. Your DTI ratio considers your annual or monthly salary and then subtracts your debts such as tuition, car payments, credit cards, etc.