If you think you will not qualify for a mortgage, you should ask your lender 
about an FHA loan. When done right, you can have the house you desire.
The Federal Housing Administration or FHA is the insurer rather than the lender. With their assistance, lending companies are more willing to be less strict with their borrower requirements. But, an FHA loan lender will still have a checklist of requirements.
Here are some of them:
Income
You need to have been with an employer or otherwise regular employment for two years. You must also be of legal age and resident of the US with a Social Security number. Your monthly amortization, plus other costs such as insurance, credit cards, student loans, and car payments, should not be more than 43% of your income before taxes. You can probably get away with paying up to 50% if your lender can justify the exception.
Initial capacity
Apart from your regular income, Primary Residential Mortgage, Inc. explains that a borrower needs to pay at least 3.5% of the loan amount plus any closing costs you might incur. You can get this from a family member if you do not have the savings. However, you must have at least a credit score of 580 if you want to avail of the minimum down payment. You can still get an FHA loan with the maximum loan-to-value ratio of 90% if you have a credit score between 500 and 579, but you will have to pay a down payment of 10%.
Other requirements
The FHA requires approved lenders to include the following requirements in addition:
·It is for a primary residence
·The property was appraised by an FHA-approved entity
·The property meets FHA minimum standards, e.g. good repair
·Three years out of foreclosure, with some exceptions
·Two years out of bankruptcy, with some exceptions
If you are hoping to qualify for an FHA loan, you need to get in touch with an FHA-approved lender. While the requirements are not as stringent as a regular mortgage, there are still qualifications. This list is just a few of the requirements.
