Articles Tagged With: FHA income

April 30, 2021

FHA Home Loan Rules For Income: VA Benefits, Disability

Home loan approval depends on a variety of factors–your credit score, history of on-time payments on your financial obligations, and your income. Where your paycheck is concerned, FHA loan rules say the income must be verifiable and likely to continue in order to be counted for purposes of approving your FHA mortgage. FHA home loan rules in HUD 4000.1 say that certain benefits may be counted as verifiable income–the rules allow the use of disability benefits to financially qualify for the loan. But there are borrowers who worry their disability income won’t be counted for the purposes of the loan. In cases where such income meets FHA standards, the borrower likely has nothing to worry about. Those standards are found in HUD 4000.1 and start with a basic definition of | more...

September 20, 2018

What You Need To Know About FHA Loans And Income Verification

By Bruce Reichstein

What do borrowers need to know about FHA home loans and income verification requirements? The short answer is that it depends on several factors including the nature of the borrower’s job. Why is this true? Why isn’t there a standard answer? Because there are a variety of different employment types and FHA loan rules must address them. Self-employed borrowers are held to a different set of requirements because verifying that income requires a different set of procedures than for “traditional” employment. Those who work in the gig economy as contractors, 1099 workers, etc. are also in a different set of circumstances than a typical 9-5 worker, so those employees need their own procedures, too. FHA Loan Income Verification Rules For more traditional employment, the lender may require pay stubs, tax | more...

November 3, 2017

What Should I Know About FHA Loan Employment And Income Verification?

By Joe Wallace

What should I know about FHA loan employment and income verification? For starters, it is easy to believe that the income and employment verification processes are the same thing-they aren’t. Borrowers should know that the lender will examine both employment history and income history. Depending on circumstances, that data could help a borrower get closer to loan approval. FHA Loan Rules Require Verification Of Both Income And Employment The lender must verify the basic facts of your employment including how long you have worked with the company, the nature of your pay, whether you have had any promotions or raises, etc. The basic rule for employment verification is that the lender must document two years of your most recent job history, or have documentation of your equivalent time spent in | more...

November 2, 2017

Are There Any Income Documentation Rules For FHA Loans?

By Bruce Reichstein

Are there any income documentation rules for FHA loans? That is what some borrowers want to know when they are ready to fill out a mortgage loan application. What does your FHA lender need to know about your income and employment? The FHA Lender Is Required To Document Your Employment And Income In the FHA loan handbook, HUD 4000.1, your FHA loan officer is instructed to document two years of employment, though that two years is not necessarily required to be with the same company or in the same job position. The lender wants to know your income history, whether you have gotten any raises, or whether recent job changes have resulted in a benefit to you income-wise. FHA Loan Rules Require Independent Verification Of Your Income This means that | more...

FHA Home Loans And First Time Home Buyers

October 31, 2017

What Are The Income Requirements For An FHA Loan?

By Bruce Reichstein

What are the income requirements for an FHA loan? Some aren’t sure if they earn enough to qualify for an FHA mortgage, and others are worried that they might earn “too much” to qualify, mistakenly believing that FHA loans are only for people within a certain income bracket. What’s the reality? FHA Loans Are For Anyone Who Qualifies There is no minimum income requirement for an FHA mortgage, and there is no upper limit or income “ceiling”. FHA loans are not targeted for any one income bracket. It is true that FHA loans are designed with more lenient FICO score minimums in mind, but that has nothing to do with the amount of your annual income or how you earn that income. Basic FHA Loan Income Requirements There ARE FHA | more...

What Credit Score Is Needed For An FHA Mortgage?

September 29, 2017

FHA Loans, Income Verification, And Rental Income (Part Two)

By Joe Wallace

In our last blog post, we discussed some basic FHA loan rules about using rental income to qualify for an FHA mortgage loan. Some borrowers are interested in purchasing a multi-unit property that they intend to live in as their primary residence, with the goal of renting out unused living units. FHA loan rules permit this only when the borrower lives in the property; you cannot plan to be an absentee landlord and expect FHA loan approval. In our last blog post, we wrote: “It is reasonable to expect that such a borrower would want to know if she could use projected rental income from that arrangement as ‘verifiable income’ for the purposes of loan approval. Can the borrower reasonably expect a lender to approve of income from this rental | more...