FHA Guidelines

FHA underwriting guidelines are what FHA approved lenders use to either approve or deny your loan. While this list is not meant to be an all-encompassing list of FHA guidelines and requirements, it will give you a good idea of what underwriters are looking for with respect to FHA guidelines. Also see FHA qualifications.

FHA Guidelines: Required Documentation

FHA Guidelines: Employment and Income

When an FHA underwriter cites capacity to repay, he or she is referring to a borrowers anticipated amount of income and the likelihood that it will continue. As such, FHA loan guidelines call for the evaluation of the source of a borrowers income to ensure that it can be verified, that it is stable and that it has a high likelihood to continue.

FHA does not put restrictions on the type of employment that a borrower has or on minimum length of time that they have held a position of employment. However, FHA loans do require that a borrower has at least two years of employment history.

Stability of Income
Salary, Wage and Other Income
Employed by Family Businesses
Self-Employed Borrowers
Income Analysis – Tax Returns
Other Income

FHA Guidelines: Funds For Closing

Settlement Requirements
Acceptable Sources of Borrower Funds
Secondary Financing

FHA Guidelines: Liabilities and Credit

Analyzing Borrower Credit
Credit Report Review
Non-Traditional Credit and Insufficient Credit
BorrowerLiabilities
Borrower Qualifying Ratios
Condominium Utility Expenses
Energy Efficient Homes
TOTAL Mortgage Scorecard

FHA Guidelines: Occupancy and Property Requirements

Property Requirements and Restrictions
Principal Residences
Secondary Residences
Investment Property

FHA Guidelines: Other Eligibility Requirements

Borrower Eligibility
Maximum Mortgage Amount For Purchases
Transactions Affecting Maximum Mortgage Calculation

FHA Guidelines: Insurance Requirements

Mortgage Insurance Premium
Hazard Insurance
Flood Insurance
Title Information
Insured 10 Year Protection Plan

FHA Guidelines: Assumptions

General Information
Creditworthiness Review
LTV Reduction Requirements

FHA Guidelines: Property and Appraisal Analysis

Selection of Appraisers
Report for and Exhibits
General Acceptability Standards and Property Eligibility
General Acceptability Criteria
Valuation Process
Site Requirements
Neighborhood Hazards and Nuisances
Improvement Analysis
Misc. Appraisal Considerations
Misc. Housing Types
Water and Sewage Systems
New Construction
Repair and Inspection Requirements
Manufactured Housing