FHA Loan Requirements

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The FHA loan is still one of the best options for buyers when purchasing a home.  You should contact a reputable loan officer for specifics on your personal situation, but the following are guidelines for FHA loan qualification when making less than a 10% down payment. 

  • Maximum loan amount in Atlanta is $346,250.
  • All properties are eligible if they meet FHA appraisal standards.
  • 3.5% down payment – Family gift, bond program, or 401(k) liquidation are acceptable forms of down payment.
  • Upfront Mortgage Insurance of 1% can be financed and annual MI of 1.15% can be paid monthly.
  • Minimum 620 credit score.
  • No late payments in the last 12 month – exceptions may be made for extenuating circumstances.
  • Bankrupty wait time is 2 years from discharge for a Chapter 7 and 12 months from filing with good payment history and permission of Trustee if filed Chapter 13.
  • Foreclosure/Short Sale wait time is 3 years from deed transfer date.
  • Maximum Debt Ratios – 31/43 for manual underwrites, but higher ratios may be available with direct underwriting approval.
  • Cannot have another FHA loan unless you meet exception criteria.
  • Maximum Seller Contribution:  6% of Purchase Price.
  • No reserves are required at the day of closing.
  • Gifts are allowed for down payment, closing costs, and prepaids.
  • A Non-Occupant may be a Co-Signer.
  • Fixed Rate and Adjustable Rate Programs are available.
  • Student Loans are not counted in debt ratios if deferred for a t least 12 months.

Contact Mark Lackey today (404-886-8789) with Atlanta Housing Source to find out more about the loan process and how he and his team can assist you with all of your real estate needs – whether buying or selling in DeKalb, Gwinnett, Cobb, Forsyth, North Fulton, or Henry.

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