What are the basic eligibility requirements for FHA financing?

FHA insures mortgages made by approved lenders to individuals and nonprofit and government agencies that are approved to participate in HUD's programs; HUD does not loan money to homebuyers.

Generally, to be eligible for an FHA loan, you 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 your state. Lenders will verify income, assets, liabilities, and credit history for all parties on the loan.

FHA's mortgage programs do not typically have maximum income limits for qualifying, although you must have sufficient income to qualify for the mortgage payment and other debts. Income limits may be present when qualifying for down payment assistance or other secondary financing programs (including those funded by HUD) that may be used in conjunction with an FHA loan.

Using FHA guidelines, lenders will make a credit determination based on the merits of each case. To find out if you qualify, and how much you can borrow based on your income and debts, you should contact an FHA-approved lender.

For additional information on FHA mortgages go to: https://www.hud.gov/topics/buying_a_home

To locate an FHA approved lender go to: https://www.hud.gov/program_offices/housing/sfh/lender/lenderlist

You may also wish to contact a HUD approved Housing Counseling Agency in your area for unbiased counseling on your particular situation.

Many local and State government programs are available that provide grants for the down payment or to help pay closing costs. To find out what programs are available in your area visit: https://www.hud.gov/buying/localbuying

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-01565