FHA loans are open to anyone who can meet the credit requirements, afford the mortgage payment, come up with the FHA required down payment, and plans to use the property as his or her primary residence. A person does not need to have a high-paying job or have perfect credit to qualify for an FHA loan. In fact, FHA will include seasonal jobs, child support, pensions, VA benefits, military pay, Social Security income, spousal support, part-time pay, overtime and bonuses in its calculation of a person’s income. The FHA is also more flexible in what it will accept on a person’s credit history. The FHA is great for the first-time home buyer.
What the FHA is not flexible on is the property that it will extend a mortgage on. The FHA inspects and appraises the property to make sure that it is worth the amount of the loan and that it meets other criteria. Yes, this can prevent a buyer from using FHA for certain properties, but many buyers are happy to rely on this FHA review to keep them from investing in a house that has serious defects and is not worth the loan amount.