You will need to fulfill a number of prerequisites to be eligible for an FHA mortgage. It’s important to know that these are the FHA’s minimum requirements, and creditors might have additional stipulations. To ensure you get the perfect FHA loan, shop at least 5 FHA approved lenders and compare their offers. Further facts about Phoenix, AZ can be found here.
The least credit score for the FHA mortgage is 500. If you have a credit score that is 500-579, you can be eligible for the FHA mortgage. However, you’ll have to make a large down payment. Note that these are FHA requirements, and the lenders can decide to ask for a higher minimum credit score. Information about FHA Loans VS Conventional Loans can be found here.
Down Payment Money
If your credit score is above 580, you’ll be required to pay a down payment of below 3.5%. In case your credit score is 500-570, you will have to pay 20% of the buying price.
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You need to have a debt-to-income ratio of less than 50. This means that your total monthly debt payment goes beyond 50% of the pretax revenue. This comprises debts that you are not actively paying.