Can You Make Too Much Money For A Fha Loan

FHA Loan Rules For Income: Is There A Maximum Circumscribe?

A reader asks, "I was prequalified for an FHA loan and during escrow, my agent said I made too much money to be in line for the loanword. Does that score sense?"

The simple answer to this query is no, the whimsey that a borrower makes too much money to condition for an FHA mortgage loanword does non make sense. But let's quizzer what prescribed FHA and HUD documents say around the single-phratr FHA loan program:

"If you are buying a home, refinancing a mortgage for a home you already own, or making home improvements, you whitethorn qualify for an FHA-insured mortgage.

In fact, almost anyone who has a satisfactory credit record, adequate Cash to close the lend, and sufficient steady income to make monthly mortgage payments can be approved for an FHA-insurable mortgage. There is no top age limit and no destined income level mandatory, although individual mortgage amounts are limited by law. Generally, homebuyers must inhabit in the home in order to get an FHA-insured real estate loan. The program is not open to investors."

That is from the HUD issue titled, "The Guide to Single Kinsperson Home Mortgage Policy", which can be downloaded from the Federal Housing Administration/Housing and Urban Development official site at http://portal.hud.gov/hudportal/documents/huddoc?id=1235h.pdf.

Note that the quote provided to a higher place mentions that there is "no income level required". That would include a maximum trammel on income. Those who employ for FHA base loans bequeath have their debt-to-income ratios and FICO stacks reviewed and in that respect are definite limits to the amount of a real estate loan that sack be guaranteed by the FHA. Merely to the best of our knowledge no borrower has ever been denied on the basis of earning besides much money.

Borrowers should eff that FHA home loans are not specifically studied for a certain category of borrower–piece it's genuine that an FHA loan buns indeed be a big help to people with low to moderate incomes (thanks in part to lower berth down payments and more competitory mortgage loan rates than received loans), those people are non the only ones who are competent to apply for an FHA mortgage.

Arrange you have questions about FHA loans? Expect us in the comments section.