The attraction of the government-backed FHA loans is increasing at a very rapid rate. This has been particularly so after the introduction of stringent restrictions to avail mortgage loans. The FHA loans have been in the operation since 1934. Since then, it has been catering to the homeownership requirements of the people in the country. FHA loans have been more popular because of the comparatively easy terms and conditions associated with these loans. However, in order to get approval for an FHA loan, a home buyer needs to fulfill certain criteria, pertaining to credit, income and property.
One important part of FHA mortgage loan approval is the verification of income and evaluation of the earning capacity of the homeowners. With these, mortgage lenders come to know about the repayment capacity of the home buyers. Though, no credit score requirements have been stipulated, but mortgage lenders look into the credit score of the home buyers before approving a mortgage loan. Generally, the minimum credit score required to obtain an FHA loan is 620. The minimum down payment amount to get approved for a mortgage loan is 3.5% of the sales price of the house. A home must have an FHA appraisal performed by a certified appraiser in order to be an acceptable property for an FHA loan.
However, FHA loan approval requirements may vary from state to state. But, as such, there is no basic difference in the mortgage loans offered by different mortgage lenders.