Who Qualifies for a HUD Loan?
- To qualify for an FHA-insured HUD loan, you must prove a minimum of two years of steady employment (preferably with the same employer) and a consistent or increasing income, according to FHA.com. An important aspect of your qualifications for HUD is the proof of your ability to afford the monthly mortgage payments.
- Credit requirements for a HUD loan are much more relaxed when compared to conventional home loans, with a minimum credit score of 620 required or no credit score at all, in some cases. Any bankruptcies or foreclosures must be at least three years old, with impeccable credit in the last two years or more.
- The FHA requires your mortgage payments to be no more than 29 percent of your monthly gross income. Also, non-housing costs and mortgage payments combined may be no more than 41 percent of your income.