What does it take to be eligible to apply for an Minnesota FHA home loan? FHA requirements includes details about income, credit rating and other factors, but before a loan officer looks at any of that information, an applicant has to meet the basics.
Basic FHA Loan Requirements
According to the official site at HUD.gov, applicants must "have a valid social security number and have lawful residency in the United States and be of a legal age to sign on a mortgage in Minnesota." Those basic FHA requirements apply to the applicant and any co-applicants listed on a loan application. While some applicants may have privacy concerns about using a Social Security number on a loan application, providing the number is not optional.
FHA Income Requirements
One of the myths about FHA requirements for applying for an FHA guaranteed mortgage has to do with income limits. It's easy to assume there's a ceiling or maximum income for an FHA loan, but such limits usually apply when seeking down payment assistance or secondary financing to be used alongside the FHA mortgage. FHA loans themselves don't feature a maximum income limit therefore applicants cannot be turned down because they make too much money.
FHA Minimum Income Requirements
Another myth about FHA loans is that there is a minimum income requirement. While this is not true, the FHA official site reminds applicants, "You must prove steady income for at least three years, and demonstrate that you've consistently paid your bills on time."