Today's featured FHA question

"What is the difference between FHA home loans and conventional mortgages?"

Gabriel P. - Glen Cove, New York
Answer from ApprovedFHA.com

"In most cases, FHA loans are easier to qualify for and offer great rates but may be slightly more expensive than conventional loans..."

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FHA Loan Income and Employment Guidelines

FHA Lenders are more concerned with your income, employment and overall ability to afford and repay your FHA mortgage than anything else. Below are some of the most common income and employment requirements lenders impose when approving you for an FHA loan

FHA Loan Employment Guidelines - Quick Facts

  • FHA lenders look for a 2 year consistent employment history - It is okay if you have changed jobs in the last 2 years as long as you have remained in the same line of work
  • To verify a borrower's employment, the FHA mortgage company may ask for income documentation along with a written or telephone based verification directly from the employer
  • Any gaps, or periods where the applicant of an FHA loan was out of work must be thoroughly explained in a written letter

FHA Income Guidelines - Quick Facts

  • If you are a wage earner (work for a company) your FHA lender may require that you provide 1 month of consecutive pay stubs from your employer that clearly state your income, pay period and total year-to-date income.
  • Wage earners must verify income via 2 most recent years W2 statements
  • The income used to qualify for an FHA mortgage is based on a wage earners gross pay
  • Self Employed individuals will be required to provide 2 most recent years tax returns (all pages)
  • Self employed individuals applying for an FHA mortgage will be qualified using their adjusted gross income

Documents Needed for Qualification

Depending on your current situation, your FHA lender will require certain personal documents from you in order to qualify you for an FHA loan - Read more on FHA documents you may need to provide

The FHA Loan Process

The FHA loan process can be very fast and easy if you are prepared - Read more about the FHA home loan process

FHA Credit Guidelines

While FHA lenders will qualify you in many cases with a lower credit score than conventional (non-FHA approved) lenders, FHA banks do have a set of credit guidelines that you must adhere to - Read more about FHA qualifying credit guidelines

FHA Loan Update

August 2nd, 2011

FHA Loan Requirements

What will you need? Click the link below to read about FHA Loan Requirements, credit and income requirements, FHA lender guidelines and the documents that may be required by your FHA lender....

Read more on FHA loan requirements

FHA Loans and You

April 11th, 2011

Using a Mortgage Broker?

As of April 1st, 2011, mortgage originators will no longer be allowed to collect Yield Spread Premium (YSP) - a fee charged by mortgage brokers that is normally paid for by the lender upon closing a purchase or refinance transaction. This can mean higher up front fees for [you] the consumer....

Read more on how this may affect you

FHA Loans and You

FHA Mortgage Insurance Increase

On February 14, the FHA announced a new premium for FHA single-family mortgages, increasing the annual mortgage insurance premium (MIP) by a quarter of a percentage point (.25) on all 30-year and 15-year loans.

How will this affect you? [click]

For Home Buyers

Everything you need for Buying a Home FHA

FHA loans allow you to buy a home at very affordable terms. With FHA's low down payment requirements, light qualification guidelines and competitive fixed rates, millions of American's have turned to an FHA loan for their home purchase...


More about FHA loans for buying a home

FHA Refinance

Refinancing With a FHA Loan

If you are thinking about a refinance, an FHA refinance might be the solution. FHA loans offer rates just as low as conventional loans and in many cases are easier to qualify for...


Read more on FHA refinance requirements