FHA Loan Requirements for 2024: Required Documents, Eligibility Criteria, and More

FHA Loan Requirements for 2024

You are required to know some rules for getting a home loan through the Federal Housing Administration(FHA) in 2024. A credit score is one of the important things if you want to buy a house with an FHA loan. If it's 580 or higher, you can put down as small as 3.5% of the home's worth.

But if your score is between 500 and 579, you'll be required to put down 10%. The FHA also looks at how much money you owe compared to how much you make. You shouldn't owe more than half of what you earn each month.

When you're applying for an FHA loan, you need to show you have a stable income for at least two years. If you haven't had a regular job, you might still qualify if you can show you've been in school or the military. The FHA wants to see that you've paid your bills on time in the past.

And if somebody gives you money to help with the down payment, you are required to prove it's a gift, not a loan you have to pay back. These are some of the rules you need to follow to get an FHA loan in 2024.

FHA Required Documents 

You need to have some essential documents to show the lender when you're applying for an FHA loan. Here are the key documents you'll need:

• A valid ID like a driver's license or passport.
• Proof of your Social Security number.
• Your pay stubs or tax returns for the past two years.
• Letters from anybody giving you cash for the down payment, saying it's a gift.
• Your lender will tell you if there are any other documents you are required to give. Make sure to have all these papers prepared when you're applying for your FHA loan.

FHA Loan Eligibility Criteria

You should meet certain criteria set by the Federal Housing Administration to qualify for an FHA loan. Here's what you require to know:

Credit Score: Your credit score matters. If it's 580 or higher, you can put down as small as 3.5% of the home's price. But if your score is between 500 and 579, you need to put down 10%.

Debt-to-Income Ratio: This is how much you owe compared to how much you earn. You shouldn't owe more than half of what you make each month.

Income History: You need to show you had consistent pay for at least two years, either through a job or other means like school or military service.

Payment History: The FHA needs to see that you've paid your bills on time in the past.

Gift Funds: If somebody gives you cash to offer assistance with the down installment, you are required to prove it's a gift, not a loan you have to pay back. 

These are the eligibility criteria you should meet to be qualified for an FHA loan.

What Are the FHA Loan Limits for Different Areas?

FHA loan limits will vary depending on where you are buying a home. These limits are set by the Federal Housing Administration and may change from year to year. In 2024, the FHA loan limits usually range up to $498,257 for single-family homes in low-cost areas and up to $1,149,825 for high-cost areas.

Some countries have limits between these amounts. You can check the FHA site to find the particular loan limits in your area. These limits will help you decide the maximum amount you can borrow with an FHA loan based on where the property is located. 

Make sure to check the loan limits for your area before applying for an FHA loan.