FHA Loan Program Description and Qualification
By admin | March 27, 2008
Program Description
FHA’s primary financing program is a fixed rate loan. This means the interest rate you begin with stays the same through the life of the loan, usually 30 or 15 years.
Qualification
FHA qualifying guidelines include ratios in which a house payment (principal and interest, property taxes, homeowner’s insurance and mortgage insurance) should not to exceed 31% of your gross income and house payment plus all debts (referred to as DTI) should not exceed 43% of gross income. Debts considered in the DTI ratio consist of accounts with balances, credit cards and student loans (including deferred). Small installment loans with less than 10 months remaining are not counted in the DTI. Under certain circumstances, ratios exceeding 31/43 will be considered. (i.e. automated underwriting, purchasing energy efficient home, large down payment)
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