❌ What Can Disqualify You from an FHA Loan?
FHA loans are flexible, but there are a few common disqualifiers to be aware of:
1️⃣ Low Credit Score
- Minimum is usually 580 for the 3.5% down payment option.
- Scores 500–579 may still qualify with 10% down.
2️⃣ High Debt-to-Income (DTI) Ratio
- Lenders typically want your DTI below 43%.
- Too much existing debt (credit cards, car loans, student loans) can block approval.
3️⃣ Bankruptcy or Foreclosure
- Chapter 7 bankruptcy: Usually need 2 years since discharge.
- Foreclosure: Usually need 3 years since it was completed.
4️⃣ Unverifiable or Low Income
- FHA requires proof of steady income.
- Self-employed buyers need documentation like tax returns and profit/loss statements.
5️⃣ Property Issues
- FHA inspects the home — if it fails safety or structural standards, the loan may be denied until repaired.
💡 Trealtorr Take
Even if you have past credit issues, bankruptcy, or high DTI, you might still qualify with the right strategy and programs. That’s where Trealtorr comes in — we review your full picture and guide you to approval.
📲 Call or text us at +1 (347) 831-6085 — we’ll check your eligibility and show you the best FHA or other loan options to get into your first home fast.