Must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage (18 years old in Texas).

FHA with a 580+ credit score, borrowers can put as little as 3.5% down,  If the score is 530-579, a 10% down payment us required. If you do not have a score, we can use the other payment-history records, such as utilities and rent payments.  Normally, for borrowers with no credit score, we need 3 accounts with on time payment history for the previous 12 months.

A borrower must have a steady history of employment.  FHA requires borrowers to have a 2 year work history.  You do not need 2 years at the same employer. If you earned a degree in your field of work, the time in school can count as work history.  For example, a student studying to be a nurse, graduates after 4 years in school. The 4 years in school would cover the 2 year work history.  This borrower would be eligible for an FHA loan when they started their first full time job.

Self Employment: If you are self-employed, you will need two years of successful self-employment history, documented by tax returns and a current year-to-date balance sheet and a YTD profit and loss statement. Applicants who have been self-employed for fewer than two years but more than one year can be eligible if they have a solid work and income history for the two years preceding self-employment and the self-employment is in the same or a related occupation

This is a simple calculation used to determine the % of available income a borrower is using to qualify.  For example, if a borrower made $10,000 per month and their new house payment was $2000, the front end ratio would be $2000/$10000=20%.   FHA guidelines requires a borrower's  front end ratio which the total monthly mortgage payment, HOA fees, property taxes, mortgage insurance and homeowner’s insurance – be less than 31% of total gross income. However, it is possible to be approved with a 40% ratio. Additionally, a borrower's back end ratio which is of the total monthly mortgage payment and all other monthly consumer debts –  is required to be less than 43% of total gross income. However, it is possible to be approved with a ratio as high as 56%.  The back end ratio is the total of debts plus the house payment. Using the same example, if the borrowers other outstanding debt required monthly payments of $1,000 per month, we would add that to the house payment.  $1000 + $2000=$3000. In this example the back end ratio would be 30%. $3,000/$10,000=30%

The new home must be owner occupied by the borrower(s).  Fha does not finance 2nd homes or investment properties

An appraisal is the way lenders determine the value of a property. An appraisal done by an FHA approved appraiser is required for all purchase transactions. FHA bases the value on the lower of the sales price or the appraisal. Your lender will order the appraisal.