FHA Requirements
Debt-to-Income Ratio Guidelines
In order to prevent homebuyers from getting into a home they cannot afford, FHA requirements and guidelines have been set in place requiring borrowers and/or their spouse to qualify according to set debt to income ratios. These ratios are used to calculate whether or not the potential borrower is in a financial position that would allow them to meet the demands that are often included in owning a home.
![Debt Ratio Guidelines](/assets/images/animation/debt-01.png)
The two ratios are as follows:
1) Mortgage Payment Expense to Effective Income
Add up the total mortgage payment (principal and interest, escrow deposits for taxes, hazard insurance, mortgage insurance premium, homeowners' dues, etc.). Then, take that amount and divide it by the gross monthly income. The maximum ratio to qualify is 31%.
See the following example:
![](/assets/images/dashes.png)
![](/assets/images/dashes.png)
![](/assets/images/dashes.png)
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2) Total Fixed Payment to Effective Income
Add up the total mortgage payment (principal and interest, escrow deposits for taxes, hazard insurance, mortgage insurance premium, homeowners' dues, etc.) and all recurring monthly revolving and installment debt (car loans, personal loans, student loans, credit cards, etc.). Then, take that amount and divide it by the gross monthly income. The maximum ratio to qualify is 43%.
See the following example:
![](/assets/images/dashes.png)
![](/assets/images/dashes.png)
![](/assets/images/dashes.png)
![](/assets/images/dashes.png)
![](/assets/images/dashes.png)
![](/assets/images/dashes.png)
Please note that the above indicators do not exclusively determine whether or not a candidate will qualify for an FHA loan. Other factors will be considered, including credit history and job stability.
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FHA Loan Requirements
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FHA Loan Articles and Mortgage News
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July 25, 2024 - The U.S. Department of Housing and Urban Development issued a proposed new rule in July 2024 that is intended to be a permanent policy regarding the sale of delinquent FHA single-family mortgage loans.
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July 21, 2024 - FHA refinancing is worth considering if you want a government-backed loan insured by the Federal Housing Administration (FHA) that can refinance you out of a conventional adjustable rate mortgage or get you cash back at closing.