As of 2015, FHA loan requirements include stable employment, a valid Social Security number, a 3.5-percent minimum down payment and a property appraisal by a FHA-approved appraiser, according to Zillow. An applicant must also meet the required credit score as well as front-end and back-end ratios.
FHA loan applicants should be of legal age to take out a mortgage in their particular states and must be lawful residents of the United States, says Zillow. Calculating the front-end ratio involves adding the mortgage payment to mortgage and home insurance, property taxes and Homeowners Association fees. The FHA usually requires a front-end ratio no more than 31 percent of an individual’s gross income. The sum of a person’s mortgage payment and total monthly debt refers to the back-end ratio. The FHA usually approves applicants with a back-end ratio not exceeding 43 percent of their gross income.
The required minimum credit score for maximum financing is 580, and the minimum down payment is 3.5 percent, states Zillow. For maximum loan-to-value of 90 percent, a person should have a minimum credit score ranging from 500 to 579. In this case, a 10-percent down payment is necessary. Applicants must be out of bankruptcy for at least two years and must have good credit. Another requirement is to be out of foreclosure for at least three years and to have maintained good credit since foreclosure.