- 1). Have a history of steady employment for two years prior to applying. To qualify for an FHA loan, you must demonstrate that you have a minimum two consecutive years of employment at a steady job. While the FHA prefers that these two years be with the same employer, those who have switched employers once or twice will still qualify for an FHA loan. In addition, you must be currently employed at the time of your application.
- 2). Demonstrate that the prior two years of income are steadfast or have increased. Raises, cost-of-living increases, and other similar increases in pay scale will satisfy this requirement. Year-end bonuses that are based on performance may satisfy the requirement, unless the bonuses are not guaranteed.
- 3). Have a minimum credit score of 620 or higher. A credit score slightly below this number may still qualify for an FHA loan, provided you meet or exceed all other requirements. However, a credit score that is significantly lower than 620 will likely disqualify you. In some cases, having no credit history or score will qualify for an FHA loan, as well, particularly for those who are younger who have not yet had a chance to develop a credit history.
- 4). Have no more than two "30 day" late payments on your credit score within the last two years. A significant history of late payments within this time frame will likely disqualify you, even if you meet the other guidelines to qualify for an FHA loan.
- 5). Have no bankruptcies on your credit history within the last two years, and no foreclosures within the last three years, with a perfect credit history proceeding the discharge(s). Recent bankruptcies or foreclosures will not qualify for an FHA loan; however, provided you meet the other requirements, you will qualify once the two/three year period has passed.
- 6). Choose a mortgage payment that is no more than 30% of your gross income prior to taxes. This is calculated monthly. If your mortgage payment exceeds 30% of your gross monthly income, you will not qualify for an FHA loan.
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