Qualifying for an FHA Loan
by Janet Wickell
• To obtain an FHA loan, you must have a credit background that shows you meet your obligations.
• You must have enough income to pay your monthly debt, as outlined on page 1.
• You must have enough cash to make a down payment at the time of closing.
• You must be able to pay the closing costs, which normally total 2-3% of the price of the home. These costs might include homeowner's insurance, attorney's fees, fees for a title search and title insurance, Private Mortgage Insurance if you are paying less than 20% down, the loan origination fee, and a fee that goes into the FHA insurance fund.
• You might also be paying 'points,' to the lender. Each point equals 1% of the cost of the home. Sometimes a seller will agree to pay your points, and sometimes points can be financed.