FHA Eligibility


Are you interested in the FHA loan? Since the 1930s, the U.S. government has installed programs that help homeowners borrow money to buy a house.

Not everyone is eligible for an FHA loan. You must meet certain criteria outlined by the Federal Housing Administration in order to be eligible for a loan.

Also, be prepared to provide lots of documentation and proof for the following items:

  • Legal U.S. resident
    You’ll need to provide proof of legal residency and a Social Security Number.
  • Legal age to get a mortgage
    You must also be of the legal age to apply for a mortgage in your state.
  • Employment and income
    Ideally, you can prove you have two years of consistent employment from the same employer and that your income has either stayed the same or gone up. You’ll need to collect W2s, income tax statements and paystubs.
  • Credit score
    The FHA loan does require that borrowers meet credit guidelines – check with a lender as credit scores vary.
  • Debt-to-income and payment-to-income ratios
    Lenders will look at your income and compare it with your debts to determine if you meet FHA eligibility requirements for debt-to-income ratios. Also, your expected mortgage payment must be around 30% of your income (before taxes and withdrawals.)
  • Down payments
    FHA loans require a 3.5% down payment. These funds CAN be gifted.
  • Three years after foreclosure, two after bankruptcy (for non-homeowners)
    If you foreclosed on your last house, you must wait three years until you apply for a new FHA loan. Approval will depend on credit and good documentation during the loan process. If you’ve experienced bankruptcy, you must wait two years until you are eligible for an FHA loan. If you were a homeowner during bankruptcy, you must wait three years.

FHA Streamline Refinance

The FHA Streamline refinance was retooled in 2011 to help those already in an FHA mortgage take advantage of lower interest rates. Instead of getting your home appraised, you can refinance based on the original purchase price of the home and not its current value. This is extremely advantageous for those underwater in their FHA mortgages.

Although you do not have to verify your employment or income – or even have your credit pulled – on an FHA Streamline refinance you will need:
  • Current on your loan payments.
    Only one late payment within the past 12 months is allowed – no late payments within the past three months.
  • Waiting period.
    You cannot refinance back-to-back. You need at least six payments on your current loan. There must be at least 210 days in between your refinances.
  • Show a “Tangible Benefit.”
    Some acceptable reasons include reducing the monthly payment or getting out of an adjustable rate mortgage. (Not having extra cash.)

We were first time home buyers and it was very scary territory! The second I walked into Ken office Kim made me feel so comfortable! Ken was so great at explaining everything to use and him and Jackie were so thorough and professional! The whole team is so great I would recommend them to anyone!

dowdy kasey on 2018-05-01

Ken and his team we awesome to work with. You all made this process so easy. Thank you for all you did to make our dreams come true. I will recommend them to everyone I know.

dtpaint018 on 2018-02-01

Ken and his colleagues were very easy to work with to finance the purchase of our new house. Everyone was friendly and efficient and Ken was a great resource for questions about the process. He was able to get our pre-qualification letter out the same day we needed it. Once we were under contract, at his recommendation, we locked in our rate at a great time and there was no drama in the closing process. We were able to do all the paperwork online--no messing with fax machines or dropping physical papers off anywhere. We would definitely work with Ken again.

jessifails on 2018-02-01

Ken and his team are a pleasure to work with! He was always happy to help and answer any questions we had and keeping in contact every step of the way.

MMM1117 on 2017-05-01

We only had just over a month for have our loan ready. Ken assured us it would be ready. From start of the process to the closing, the process was seamless. Ken's team was efficient, knowledgable and helpful the enter time. They assisted us with everything that was needed and kept us informed the entire time. I would recommend Ken and his team to anyone needing a mortgage.

LynneFlatleyOliver on 2017-05-01

Ken and his team have been great throughout my house purchase. They are always available and help you understand every step of the process. I would highly recommend!

steviep232005 on 2017-05-01

My husband and I just purchased a house, we are first time home buyers, and Ken was excellent to work with. He was very professional and timely in providing us with the information we needed to successfully secure our mortgage. There were no last minute surprises, everything went very smoothly. I would definitely recommend Ken.

hakeber123 on 2017-01-01

Mr. Pitts and his team were swift to support my fiance and I during every step of our housing process. He was courteous and swift to get in touch with us whenever we had questions, and professional even during negotiation over interest rates. If you go to the table with Ken, he will make sure you have the necessary financial backing to complete your purchase, without awkward issues arising during closing.

joshuanlarson on 2017-01-01

Ken recently assisted us with the purchase of our first home. Ken and his team were extremely helpful and informative throughout the entire process. I can not think of one negative thing to be said and very grateful for the professionalism, knowledge and experience that Ken brought to the table. Ken and his team assured that all necessary steps were completed well before settlement and the morning of settlement went through without a hitch. Ken also personally attended settlement with us and answered any questions that we had. A truly great guy and professional!

eric 12 on 2016-11-01

Ken and his team did a great job for my family on a very tight closing deadline. They kept us on track throughout the process. I would recommend them 100%!

ian24k on 2016-11-01

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