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TERMINOLOGY
The Federal Housing Administration, or FHA, has jumbo mortgage loans available to qualified borrowers. The interest rate on a jumbo mortgage is usually higher than a conventional mortgage, due to the increased risk incurred by the lender.
FHA Mortgage Loan Qualifications
You must meet certain qualifications in order to obtain any type of mortgage loan from the FHA. These qualifications include the following:
- One to two years of employment in a related field.
- Verifiable income for the past two years that shows a logical progression.
- In the case of bankruptcy you must wait two years from the date of discharge, and any current credit will have to be in good standing.
- If you had a foreclosure, you must wait three years and any current credit will have to be in good standing.
- Your proposed mortgage payment can be no more than 30 percent of your gross monthly income.
FHA will require mortgage insurance. There is both upfront and monthly mortgage insurance required for this program. Also, FHA requires that the property you purchase be your primary residence.
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