FHA Mortgage Guide

How can you qualify for an FHA loan?

Interestingly enough, it is in one sense harder to qualify for an FHA loan than for many of the private-sector toxic loans which are now failing at impressive rates.

Why is an FHA loan application more difficult? Because you have to document income. You can’t make up stuff.

This is a ridiculously low barrier. Do you have a W-2 and some recent pay stubs? Do you have tax returns? Congratulations! You’re well on your way toward an FHA mortgage.

You do, of course, have to meet certain qualification standards, but they are extremely liberal. As the FHA explains, in general terms to be eligible for an FHA loan, you must:

*Have a valid Social Security Number (SSN)

*Be a legal resident of the United States

*Be of legal age to sign a mortgage in your state. There is no maximum age limit for a borrower.

*Even if you are a U.S. citizen, you must still have a valid Social Security Number (SSN). An individual Tax Identification Number (ITIN) is not an acceptable substitute for a SSN.

“U.S. citizenship,” says the FHA, “is not required for eligibility. When you indicate on your loan application that you hold something other than U.S. citizenship, the lender must determine your residency status from the documentation you provide. If you are a permanent resident alien, you must provide evidence of lawful permanent residency issued by the Department of Homeland Security, Bureau of Citizenship and Immigration Services (BCIS), formerly the Immigration and Naturalization Service (INS). If you are a non-permanent resident alien, you must show that you are eligible to work in the U.S. by producing an Employment Authorization Document (EAD) issued by BCIS.”

If private-sector lenders had taken such basic steps perhaps we would not be seeing so many foreclosures and distressed borrowers at this time.

Just thinking out loud….

Check out these FHA resources for more information

This entry was posted on Friday, August 17th, 2007 at 5:19 am and is filed under FHA. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.