Here's the lending guidelines for FHA loans:

  • If your FICO score is between 500 and 579, you'll need a 10% down payment, but if your FICO score is 580+, you're only required to put down 3.5%.


  • You must have verifiable employment over the prior two-year period.


  • Your income must be verifiable by federal tax returns, check stubs, or bank statements.


  • The loan must finance your primary residence.


  • The property must meet HUD (The United States Department of Housing and Urban Development) guidelines and be appraised by an FHA-approved appraiser.


  • Your back-end debt ratio, which comprises mortgage and all monthly debts, must be less than 50% less of your gross monthly income. (Some lenders round this number up to 57%)


  • Your front-end debt ratio, which comprises just mortgage loan payments, should be no higher than 47% of your gross monthly income.


  • If you've filed for bankruptcy, you must wait between one and two years to apply for an FHA loan and three years after a foreclosure. Be sure to ask a lender because some may make exceptions to waiting periods if your circumstances are extenuating.
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