You may be denied for an FHA loan if you have declared bankruptcy but you have not had the bankruptcy discharged. You may be denied if you are delinquent on federal taxes or otherwise owe money to the federal government but without an approved payment plan.
How Long Does It Take for FHA Loan Approval? A lender must take action on your FHA loan application and inform you of the action within 30 days after you complete and submit your application. Your application needs to be totally complete before the 30-day period will begin.
FHA Loan: Cons
Here are some FHA home loan disadvantages: An extra cost – an upfront mortgage insurance premium (MIP) of 2.25% of the loan's value. The MIP must either be paid in cash when you get the loan or rolled into the life of the loan. Home price qualifying maximums are set by FHA.
Can I rent out my FHA home after the first year? Yes, after fulfilling the initial one-year occupancy requirement, you can rent out your FHA home. However, if you plan to purchase another property with an FHA loan, you will need to meet specific conditions and justifications for maintaining the original FHA loan.
Homes must meet the following appraisal requirements, or be repaired to meet requirements, to be approved for an FHA loan: Must have an undamaged exterior, foundation and roof. Must have safe and reasonable property access. Must not contain loose wiring and exposed electrical systems.
Is it hard to get an FHA loan? Getting any type of home loan requires effort and resources, but generally, it's easier to qualify for an FHA loan than for a conventional mortgage. With the pandemic and recession, however, many lenders' FHA loan and refinance requirements have become more restrictive.
Definition And Duration. The Federal Housing Administration (FHA) foreclosure waiting period is a three-year duration that begins after the completion of a foreclosure action. During this time, potential homeowners must satisfy eligibility requirements in order to qualify for an FHA loan.
The FHA approves loan amounts based on factors like your credit score, living expenses, assets, debt-to-income ratio, household income, and the value of the property. As of 2025, the FHA maximum loan limit for a one-unit property is $524,225 in low-cost areas and $1,209,750 in high-cost areas.
The Bottom Line. On a $70,000 salary using a 50% DTI, you could potentially afford a house worth between $200,000 to $250,000, depending on your specific financial situation.
The three primary factors that can disqualify you from getting an FHA loan are a high debt-to-income ratio, poor credit, or lack of funds to cover the required down payment, monthly mortgage payments or closing costs.
Common issues that may cause a property to fail an FHA appraisal include: Significant structural problems. Peeling paint. Safety hazards like exposed wiring or lack of smoke detectors.
Upfront insurance: When you put down less than 20%, you must pay for mortgage insurance. FHA loans come with two types of insurance. There's an upfront charge of 1.75%, and some borrowers choose to wrap that fee into the loan balance.
FHA Underwriting Worries Some Sellers
One reason a seller might refuse your FHA-backed offer is that they believe the home sale may be more likely to fall through due to the FHA loan program's more lenient underwriting requirements.
FHA loan application approval can take anywhere from a few weeks to a few months. This timeline includes the whole process, starting from the moment you submit the application. FHA loan approval time varies for each person and depends on factors like the borrower's financial status and the loan amount.
The property needs to be free of known hazards that affect health and safety, the home's use, or may affect the structural soundness of the house and its marketability. These include, but are not limited to: Toxic chemicals. Radioactive materials.
The answer to this question is "no." There are no minimum income requirements for FHA loans.
FHA Inspection and Appraisal Requirements. For a Federal Housing Administration (FHA) loan to be approved, the home must pass an FHA inspection and appraisal. That means it must be worth the purchase price and have such basics as electricity, drinkable water, adequate heat, a stable roof, fire exits and more.
FHA First Mortgage
Borrower must have owned property for 12 months AND if encumbered by a mortgage made payments for the last 12 months within the month due. Otherwise limited to 85% LTV. Standard 31/43 ratios, may be exceeded with compensating factor(s).
For instance, the minimum required down payment for an FHA loan is only 3.5% of the purchase price.
LLCs are ineligible for many types of residential mortgages, such as FHA and conventional loans. Still, there is specific financing available for LLCs. It just may come with more costs associated. Another route you can go is to buy the house personally and transfer it to the LLC.