The main FHA loan requirements are a credit score of generally 580 or higher for the 3.5% minimum down payment (500–579 generally needs 10% down), documented and reasonably stable income, a debt-to-income ratio within FHA guidelines, a primary residence you'll move into within about 60 days, a loan within the county FHA limit, and a home that meets HUD's Minimum Property Standards. Lenders may add stricter overlays.
Borrower requirements
- Valid Social Security number, and U.S. citizenship or lawful permanent residency (green card). HUD ended FHA eligibility for non-permanent residents in 2025.
- Legal age to sign a mortgage in your state.
- Credit history that meets FHA's score tiers — see FHA credit score requirements. Borrowers with no score may be evaluated using non-traditional credit.
- No delinquent federal debt. FHA checks CAIVRS, a federal database of defaulted government-backed loans and debts. Defaulted student loans, SBA loans, or prior FHA claims generally must be resolved before approval.
- Waiting periods satisfied after a bankruptcy, foreclosure, or short sale. The waiting period guide covers the timelines.
FHA readiness check
Seven questions to see how close you are to starting an FHA purchase.
Do you plan to live in the home as your primary residence within about 60 days of closing?
Is your credit score 580 or higher, to the best of your knowledge?
Can you document two years of work or school history?
Do you have funds for the down payment and closing costs, or a gift or assistance lined up?
Are your monthly debts manageable compared with your income?
Are you past any required waiting period after bankruptcy, foreclosure, or short sale (or have none)?
Are you current on all federal debts, such as student loans and taxes?
Your answers stay in your browser — nothing is saved or sent. This is a quick orientation, not a loan decision.
Income and employment
FHA doesn't require a specific job or a minimum salary. It requires income that's verifiable and likely to continue. Underwriters generally review two years of employment history, though school, military service, or a recent career change in the same field can fill part of that window.
- W-2 employees: recent pay stubs, W-2s, and a verification of employment.
- Self-employed borrowers: generally two years of personal and business tax returns; income is averaged, and a declining trend gets extra scrutiny.
- Overtime, bonus, and commission: usually need a history of receipt before they count.
- Other income: Social Security, pensions, disability, alimony, and child support can count when documented and expected to continue.
Gaps in employment aren't automatic deal-breakers. A letter explaining the gap and evidence you're back at work often resolves the question.
Want a straight answer for your situation? Skip the call center — Matthew will review your credit, budget, and FHA options himself.
Talk with MatthewDebt ratios and money to close
Your monthly debts, including the new house payment, are compared with gross monthly income. FHA's standard benchmark is 31% for housing and 43% overall, and automated underwriting can approve higher ratios when the file has strengths. The DTI guide explains how each type of debt is counted.
You'll also need to show where your down payment and closing funds come from. Large deposits in your bank statements need a paper trail. Gifts are fine from approved sources with a gift letter — details on the FHA down payment page.
Occupancy and property rules
- Primary residence only. At least one borrower generally must move in within 60 days of closing and plan to live there for at least a year.
- 1–4 units. Single-family homes, townhomes, eligible condos, manufactured homes on permanent foundations, and 2–4 unit buildings where you occupy a unit.
- One FHA loan at a time, generally. Exceptions include relocating for work beyond a reasonable commute, a growing household that has outgrown the current home, or a co-borrower moving out of a home that remains with the other borrower.
- Within the FHA limit for the county — see FHA loan limits.
- Passes the FHA appraisal and Minimum Property Standards — see appraisal and property requirements.
Documents to gather
Identity and income
Photo ID, Social Security number, 30 days of pay stubs, two years of W-2s (or tax returns if self-employed), and award letters for benefit income.
Assets
Two months of bank and investment statements, explanations for large deposits, and gift letters with donor documentation if a gift is involved.
Housing and credit history
Current landlord or mortgage contact, explanation letters for past credit events, and bankruptcy or divorce paperwork when applicable.
The property
The signed purchase contract, HOA details for condos or planned communities, and any repair addenda negotiated with the seller.
Situations that need a closer look
Plenty of FHA files have a wrinkle. None of these are automatic disqualifiers, but each one adds documentation:
- Recent divorce: the final decree and settlement show which debts and support obligations are yours, and whether any former home still counts against you.
- New job or recent raise: an offer letter and first pay stub may be enough if you're starting a salaried position in the same field.
- Part-time or gig income: generally needs a two-year history to count, averaged over that period.
- Non-occupant co-borrower: a relative who won't live in the home can add income, with limits on the loan-to-value and property type.
- Buying from a relative: allowed, but identity-of-interest rules may affect the minimum down payment in some cases.
HUD rules vs. lender overlays
HUD sets the floor. Many lenders then add their own tighter standards — a higher minimum score, a lower maximum DTI, or extra reserves. That's why one lender can decline a file another lender approves under the same FHA program.
The Express Check above gives you a starting point. From there, a real review of your credit report and documents is what turns a guess into an answer. HUD updates its handbook regularly and lenders can add their own overlays, so Matthew will confirm the current guidelines for your file.
Frequently asked questions
What is the minimum credit score for an FHA loan?
HUD's guideline is generally 580 for the 3.5% minimum down payment and 500 with 10% down. Many lenders set higher minimums, so shopping through a broker can matter.
Do I need two years at the same job?
No. FHA looks at two years of employment history overall, not necessarily one employer. Job changes in the same line of work are common and usually fine.
Can a family member co-sign an FHA loan?
Yes. FHA allows non-occupant co-borrowers who are relatives, subject to limits. Their income and debts are included in the review.
Are there FHA income limits?
No. FHA has no maximum income, though some down payment assistance programs paired with FHA do.
Can I buy a fixer-upper with FHA?
The standard FHA loan needs a home that meets Minimum Property Standards. For homes that need more work, the 203(k) renovation loan may fit — see FHA203kInfo.com.
Ask Matthew about your FHA home loan
Tell Matthew a little about the property and your plans. He'll follow up by phone or email — no obligation.
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