February 22, 2012
A reader asked us recently whether there were any minimum income requirements for FHA condo loans. While the FHA does not place a dollar amount or set a minimum income, it does have standards for verifiable income which must be met in order to qualify for the FHA mortgage loan.
These standards have more to do with stability of income, and the ratio of monthly financial obligations to that income than the amount itself. The lender is required to determine whether the borrower can realistically afford the FHA monthly mortgage payment when factored in with the rest of the loan applicant’s obligations.
So how does the FHA lender analyze the borrower’s income? FHA rules state clearly, “The lender must analyze the income of each borrower who will be obligated for the mortgage debt to determine whether the borrower
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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