There are many differences in FHA vs Conventional loans.
For one, FHA requires a low down payment of just 3.5% with a 580 credit score.
However, it is very difficult to process a loan application with a credit score in this range.
If you have at least a 580 credit score, it is easier to qualify for an FHA mortgage.
How long does it take to get pre approved for FHA loan?
How long does it take to get approved for an FHA-insured mortgage loan? If you’re talking about the entire process — from the initial application to the final approval and closing — it might take anywhere from two weeks to two months.
Can you be denied a FHA loan?
According to the Department of Housing and Urban Development (HUD), you need a credit score of at least 500 to be eligible for an FHA loan. If you fall well below this range, you might be denied for an FHA loan. In fact, bad credit is one of the most common causes of denial — for any type of mortgage loan.
How do I know if I qualify for an FHA loan?
Here are the requirements you’ll need to meet to qualify for an FHA loan.
- Have verifiable income.
- Be able to afford the housing payment AND any existing debt.
- Save at least a 3.5 percent down payment.
- Have an established credit history.
- Have a FICO score of at least 580-640.
How much of an FHA loan can I qualify for?
FHA loan requirements
In general, FHA loans allow you to take on a mortgage payment of up to 31% of your gross income if you have existing debts. Your total debt-to-income (DTI) ratio cannot exceed 43% (in most cases).