April 2, 2014
A reader asks, “I am on disability and receive a fixed income of 788.00 monthly. I would love to be able to get a loan for a mobile or modular home. Can I be qualified for a low-income loan?”
Single-family FHA loans don’t have income requirements in terms of minimum or maximum incomes per se.
It’s a common misconception that you must earn a minimum amount of money or NOT earn too much money to qualify for an FHA mortgage. But if there are no minimums and no maximums, how do participating FHA lenders determine who qualifies for an FHA single-family home loan?
The borrower’s income and monthly obligations are analyzed to see if the borrower can afford the loan. If a borrower’s debt-to-income ratio is within the right tolerances (calculated with and without the monthly mortgage payment as a factor) it may be possible for a borrower to get approved for an FHA mortgage loan assuming other credit qualifying information is also within lender standards.
Borrowers who need help understanding how the FHA and/or participating lenders define qualifying debt-to-income ratios for the FHA loan program should contact the FHA directly (1-800 CALL FHA) for information and assistance.
But the notion of a specific “low-income loan” for the FHA single-family home loan isn’t really something offered by the FHA, though there may be state or local programs that offer assistance to people in need of such programs.
Borrowers should contact the FHA directly at 1-800 CALL FHA to learn about pre-purchase housing counseling that may be able to offer ar referral to local or state agencies.
Unfortunately, there are few lenders at the time of this writing willing to offer home loans on modular, manufactured, or mobile homes. Borrowers who need such properties may need to shop around more aggressively for a lender that is willing to work with them, but in general, the housing market isn’t favorable for mobile home loans at the time of this blog post.
Do you have questions about FHA home loans? Ask us in the comments section. You can apply or get pre-approved for an FHA loan at FHA.com, a private company and not a government website.
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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