FHA Loan Basics

The guidlines for an FHA loan are flexible but due have some basic requirements:

        1.    Minimum credit score is 640
2.    Maximum loan amount 271,050 ( Harris County )
3.    2 year employment history
4.    12 month history of 2 trade lines on credit report with no late payments ( Car payment, Credit card , Installments )
5.    12 month rental history
6.    3.5% down payment ( Can come from a family member as gift )
7.    Can use Down Payment Assistance and MCC (save 150 a month)
8.    Max 45% Debt to Income ratio (All Monthly Payments+House Payment/Total Monthly Income before taxes)
9.    Bankruptcy allowed if discharged for 3 years