What You Need To Know About FHA Loans in Spokane, Washington
Heritage Home Loans
Heritage Home Loans Spokane, WA
Published on October 20, 2022
FHA Loans, FHA Loans Spokane, Washington

What You Need To Know About FHA Loans in Spokane, Washington

FHA Loans are a government-insured mortgage loan program that has helped millions of American families buy homes. In order to qualify for an FHA Loan, you must meet specific credit and income requirements.

FHA Loan Requirements are simple to meet (The 4 C’s Lenders Use To Review Loans)

The FHA loan requirements can be more lenient than other loan programs. If you are trying to use an FHA Loan to purchase a home your lender will use the 4 C’s to review  your loan:

  • Credit score
  • Capacity to repay the loan (Income)
  • Capital for the down payment and closing costs
  • Collateral is based on the property being purchased with FHA Financing

FHA Loan Minimum Credit Score

The minimum credit score for an FHA loan is 500, but it’s best to have at least 580 on your credit report. Those with lower scores may be able to qualify with a down payment of 10%. If you do not meet the minimum credit score requirement

If your credit score is 580 or above, you can get an FHA home loan with as little as a 3.5% down payment.

Also remember that although all applicants must meet the minimum FHA loan requirements, each lender has its own guidelines regarding how much money they require from borrowers and what type of property they allow them to purchase.

Employment and Income Requirements for FHA Loans

FHA Loan Income Requirements

Like other mortgage lenders, FHA requires that you have sufficient income to repay your home loan. In addition to meeting the minimum FICO score requirement, your total debt-to-income ratio must meet certain guidelines. If you are self-employed and use this as part of your income for purposes of qualifying for an FHA loan, there are some additional rules that must be followed.

FHA Loan Employment Requirements

In order to qualify for an FHA loan, applicants must show 24 months of stable employment history. That means all periods of unemployment or underemployment need to be accounted for during the past 24 months before applying. This doesn’t mean that all of the income needs to come from the same employer.

Alternate Types of Income Alternate types of income can include but are not limited to: net rental income; dividends from stocks; Social Security benefits; Supplemental Security Income (SSI); unemployment benefits; veteran’s disability compensation; child support payments received by custodial parent(s); alimony payments received by custodial spouse/partner.

FHA Loan Down Payment Requirements

FHA home loans are an excellent option for first-time home buyers and those who can’t afford a large down payment. According to Federal Housing Administration guidelines, you’ll need at least 3.5% of the purchase price as a down payment on your new house or condo.

FHA loans are also flexible when it comes to the source of your down payment—it can come from savings, gifts from family and friends, or even government programs that help low-income borrowers get into homeownership with little or no money out of pocket.

Most down payment assistance programs are able to be used along with FHA Financing creating an even greater opportunity for potential home buyers.

FHA Mortgage Insurance Requirements

Mortgage insurance is required on all FHA loans. Mortgage insurance protects the lender in case of default, and it’s added to the loan amount and paid by the borrower.

The cost of FHA mortgage insurance varies depending on your down payment amount but that shouldn’t stop you from considering an FHA loan.

If you’re purchasing a home with an FHA loan, it’s important to understand that mortgage insurance is required. Even if you make a 20% down payment on your home purchase, you will still be required to pay for mortgage insurance.

There are two types of FHA mortgage insurance: upfront and annual. The upfront fee is a one-time charge that’s added to your loan amount, while the annual fee is an ongoing monthly payment.

The upfront mortgage insurance premium (UFMIP) is paid at closing and is usually included in the total loan amount. The annual MIP is added to your monthly payment, and it’s based on the percentage of your down payment (loan-to-value.)

FHA Loan Property Requirements

FHA loan properties must be the borrower’s primary residence. This means that you can’t use an FHA loan to purchase a second home or investment property. Your lender will check to make sure that you are using the house as your primary residence before approving your mortgage application and issuing an FHA-insured loan.


FHA loans can be a great option for getting your first home loan. If you’re thinking about buying a house with an FHA loan, contact us today! We’d love to help guide you through the process.

Heritage Home Loans
Heritage Home Loans Spokane, WA
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(509) 991-3493