I have a couple of questions concerning FHA loans: 1. Are there limits on how much one can earn and still qualify for a FHA loan? 2. I have heard that the house must meet a ridiculous inspection to be approved for FHA. Is this true? 3. Are there limits on house price and FHA loans? 4. What is the advantage of FHA v. traditional mortgage? Any help would be greatly appreciated. Illini
1) Yes, but programs vary. 2) Not rediculous in my experience. 3) Yes, but programs vary. 4) Advantages may include easier approval, lower fees, lower APR, but this can vary depending on an individual circumstance. (Someone with GREAT credit will not need a FHA to help get lower APR for instance)
On #3 there are limits as to how much they will approve. Here in Texas it's around $156,000. If the house is higher than the limit then you would have to pay the difference out of pocket. FHA does have a rather harsh inspection, but as a buyer you'd want this. I had one and because of it three major problems on a house I'm in contract with will be corrected before closing. If I were a seller, however, I'd hate FHA As far as requirements, they go by past 2 years payment history, can't have any unpaid judgements (Collection, charge-offs, etc.), and if you have a bk it has to have been at least 4 years ago... GT
