NEW FHA Income Requirements 2024 – First Time Home Buyer – FHA Loan 2024

Hey there, Millennial homeowners-in-the-making! 🌆

Are you a hardworking couple with kids, eyeing your first home in the big city? 🏡 I’ve just released a game-changing YouTube video that demystifies the world of FHA loans. Let’s dive into the key takeaways:

1. Why FHA?

Many think FHA is just for first-time buyers, but it’s not true! Anyone can use an FHA loan, and you can use it more than once. It’s an excellent choice because of the minimum down payment – as low as 3.5% with a 580+ credit score. Even if you put 10% down, monthly insurance falls off after year 11. You can refinance into a conventional loan if you qualify.

Tip: Use this flexibility to your advantage, and consider FHA beyond your first home!

2. Credit Scores/Downpayments

Having the right credit score and down payment doesn’t guarantee approval. These are guidelines; keep exploring lenders or brokers. Remember, guidelines vary between institutions.

Tip: Speak with a mortgage professional; use my referral link to find someone you like and trust.

3. Is There a Minimum Income Requirement?

Nope! FHA guidelines are flexible, allowing up to 57% of your income for all expenses. It’s not about a specific income figure but meeting certain guidelines.

Tip: Use the flexibility to tailor your financial plan within FHA limits.

4. Types of Income FHA Uses

FHA considers various income types: W2, overtime, bonuses, part-time jobs, alimony, child support, retirement, disability, rental income, and more. Excitingly, you can use 75% of rental income from other units you’re purchasing.

Example: Planning a 203k with future rental units? FHA lets you use up to 50% of the future rent to qualify.

5. Find Lender

Ensure your lender is updated on these new FHA guidelines. If not, they might not be up to date. Use the referral link below to speak with a knowledgeable professional.

Tip: Keep learning about the latest updates in FHA guidelines.

6. How FHA Calculates Your Income

It can be simple or complex, depending on your income type. Salary/W2 is straightforward, but if you’re a 1099 employee with deductions, it gets more intricate. Consult a professional for accurate calculations.

Tip: If your income is diverse, work closely with a professional to know exactly how much home you can afford.

7. Documents

Prepare key documents, including the last two years of W2s, last two months of bank statements, recent paychecks, and your credit report.

Tip: Be cautious – if you’re not providing necessary documents, you might be pre-qualified, not pre-approved.

Understanding your options is crucial. Ask your lender to show you FHA alongside other loans (conventional, USDA), and compare them to make the right decision.

Happy house hunting! 🏠🔍