What the the FHA Requirments

First, let's address that your income level is not an issue with FHA, but your qualifying ratios are. The traditional ratio guidelines have actually been expanded for several years now to 31% housing and 43% overall; the 29/41 ratios are old guidelines. While "payment shock" is a concern, you can typically qualify for higher debt ratios with other compensating factors. Most lenders determine your qualification through the Automated Underwriting Systems LP/DU; they may have additional "overlay" guidelines from there. If you want to be sure to get a loan, then a 640 fico has become the new minimum standard with most lenders; you may still be able to get approved with a lower score, but it has become very difficult in our current lending environment.

FICO needs to be at or above 640....you can qualify with a lower score of 620 or above but you will suffer on the rate. We can work with ay income level but obviously the higher the income the higher priced property you can afford. A good rule of thumb is to figure out what your monthly income is before taxes and your mortgage payment should be no more than 29% of tha number. If you have other obligations like car payments, student loans etc....then add those to the mortgage payment and that number should reflect no more than 41% of your total monthly income.Also make sure that your new mortgage payment is not too much higher than what you currently pay in rent as there is a term called payment shock which banks dont like to see you increasing your monthly housing payment by too much.