After purposefully rebuilding your life and finances, all lenders will evaluate your credit risk and determine if you are eligible for credit cards and ultimately a car or home loan. Be sure that you are ready for home ownership and that you have made the changes in your life to prevent history from repeating itself. If you have adopted money discipline in your life, and your credit history reflects this, you will most likely be eligible for an FHA home loan. Below are the FHA loan requirements. Be sure to review and understand them so you can be eligible in the least amount of time possible.

Basic FHA Home Loan Requirements

The FHA loan guidelines for qualification are the most flexible of all mortgage loans currently available. These loans also require less than 5% down payment. If you answer YES to the following statements, you can qualify for an FHA loan. However, these are some of the most basic loan requirements for qualifying. Please consult with a reputable home loan consultant for a more specific assessment as these lending guidelines change frequently.

• Two years of steady employment, preferably with the same employer.
• Last two years of income should be the same or increasing.
• Credit report should typically have less than two thirty-day late payments in the last two years with a minimum credit score of 600 or higher.
• Bankruptcy must be at least two years old with perfect credit since discharge.
• Foreclosures must be at least three years old with perfect credit since.
• Short sale that had multiple late payments prior to the closing must be at least three years old.
• Debt to income ratio should be no more than about 47%. (Total debt is no more than 47% of gross income.)

Take the First Step!

Rebuilding your life starts by simply taking the first step. Doing nothing and thinking it will just fix itself doesn’t work. This isn’t as hard as many people would lead you to believe. It’s a willingness to look at your past failures and make an effort to correct them. With your hard work all of this can be behind you in as little as two years. However, it requires you to be purposeful. Take the first step and rebuild today. Remember, it’s your life!