Short answer: There’s no single number of late payments that automatically disqualifies you from an FHA loan. But your recent payment history (especially the past 12 months) can affect whether your loan gets approved, requires extra review, or gets denied. For borrowers with a recent mortgage, having one 90-day late payment, three 30-day late payments, or […]
What Counts as a Compensating Factor for an FHA Manual Underwrite?
The Short Answer: For an FHA manual underwrite, acceptable compensating factors include verified cash reserves (3 – 6 months of payments), a minimal housing payment increase (under $100 or 5%), documented residual income meeting VA benchmarks, significant extra uncounted income, or a lack of discretionary debt. These factors allow lenders to approve total debt-to-income (DTI) ratios […]
How FHA Calculates Deferred Student Loan Payments for DTI
If you are planning to buy a home with an FHA loan and carry student loan debt, you might wonder how those student loans affect your mortgage application—especially if your loans are currently deferred, in forbearance, or set to a $0 monthly payment. The short answer: FHA rules require mortgage lenders to count a monthly payment […]
Can I Get an FHA Home Loan with a Credit Score of 500?
Reader question: “Is it possible to get an FHA loan with a credit score of 500?” Answer: Technically, a credit score of 500 will qualify you for the FHA loan program. But most FHA-approved mortgage lenders require higher scores (like 600 and up) to minimize risk. Can I Get an FHA Loan With a Score […]
Can FHA Earnest Money Come From a Gift?
Yes. FHA earnest money can come from gift funds, as long as the money comes from an acceptable source and the lender can properly document it. This means a borrower using an FHA loan may be able to use gifted money for the earnest money deposit, not just for the down payment or closing costs. […]
7 Things to Know About FHA Occupancy Rules in 2026
FHA loans are designed to help people buy a home they plan to live in, not properties they plan to rent out or use as second homes. Because of that, the program includes specific rules about occupancy—where you live, when you move in, and how the home is used. These rules are not complicated, but […]
Rules for Using Rental Income for FHA Mortgage Qualification
Rental income can be a valuable tool when qualifying for an FHA mortgage, potentially strengthening your application by demonstrating additional income streams. But there are certain rules and requirements you need to know about. 5 Key Points Covered in This Guide This guide breaks down the key rules, requirements, and procedures you need to know […]
Using Electronic Signatures With FHA Loans: A Borrower’s Guide
Buying a home with an FHA loan involves signing a large number of documents. In many cases, those documents can be signed electronically instead of on paper. FHA allows this, but only under specific conditions designed to protect borrowers and preserve the integrity of the loan file. Because electronic signatures are governed by both federal […]
How to Request a Seller Concession When Using an FHA Loan
If you’re using an FHA loan to buy a home, you might be able to lower your out-of-pocket costs by asking the seller to help pay some of your expenses. This is known as a seller concession in the real estate world, and it’s a common strategy—especially for first-time buyers working with a tight budget. But how […]
Orange County, California FHA and Conforming Loan Limits 2025
The conforming and FHA loan limits for Orange County, California were increased for 2025 due to home price gains that occurred during the previous year. Here are seven things you should know about these changes: You can learn more about Orange County loan limits below, including the figures for multifamily properties like duplex and triplex. […]