You can not get a FHA loan at all if you have no income. The amount is not really the problem but your ability to pay you bills on time. To qualify for an FHA loan, you’ll need to have reasonable debt to income ratios.

In general, you have to be better than 29/41. In addition, you have to have decent credit. You don’t need wonderful credit to get an FHA loan; it just needs to be decent.

If you file for bankruptcy you would have to wait two years to get a benefit loan. You will have to show a good payment history to establish your credit again.

You may find that FHA loans are not for you. An FHA loan may not offer enough money if you need a large mortgage. In addition, the upfront mortgage insurance premium (and ongoing premiums) can cost more than private mortgage insurance.

In many cases, you can still buy a house with a very little down using a standard loan (not an FHA loan). In particular, home buyers with good credit can find competitive offers that beat FHA loans.

Benefit of a FHA loan

You don’t need perfect credit to get it. What it does care about is a record of paying your bills, and paying them on time, for at least the past two years. It will overlook minor lapses on your credit history if there’s a reasonable excuse such as losing a job or serious illness.

But your bill-paying prowess is a critical factor for every application. In the end, the FHA does not have a strict set of rules that determine who gets a mortgage and who doesn’t. An underwriter at the bank, who knows all of the federal rules and regulations governing the FHA program, uses a computer program to analyze your finances and make the call.

You do need at least good credit and no foreclosures, they take three years before FHA will even look at you application. So remember it is all payment history not credit score.

Second Benefit of an FHA Loan

You don’t need a huge down payment to get a FHA loan. You only need a 3% down payment to get the loan. You could even get a private lender to help you with that.

You can get help from these private lenders all so known as DAP’s. They helped millions of people to get a down payment for there FHA loan.

There is a down side to getting a FHA loan. The Mortgage insurance is a lot higher then a regular mortgage. You have to use there insurance to get their loan.

Lets recap, you need to have ok credit not perfect credit to get the loan. You don’t need a large down payment. FHA does have strict rule that you need to follow but they can overlook a few things.

You got expensive insurance at least until you own 20% of the home. You need to have a good payment history to apply.