- 3.5% down payment required.
- Down payment can be a gift from a relative
- Down Payment Assistance may be available for first time home buyers
- FHA loans are only available for primary residence occupancy
- 24 months from discharge of bankruptcy and have re-established good credit.
- 36 months from date of foreclosure or short sale and have re-established good credit.
- Must have steady employment history
The score that is used to determine eligibility is called the “decision credit score” also know as your “middle score”
If one borrower on a joint application only has “nontraditional credit” and the other has a middle credit score of less than 500 are ineligible.
If there is more than one borrower, the lender will:
1. Pull the credit score for each borrower
2. Select the lowest credit score of the borrower to use as the “middle credit score” to determine eligibility.