get approved for a fha home loan step-by-step guide

What lenders look for

Lenders focus on credit history, debt-to-income ratio, and steady earnings. FHA loans are forgiving, but you still need to show you can handle the payment and care for the property you’re buying.

Basic eligibility

Many borrowers qualify with a credit score around 580+ for 3.5% down, though lower scores may require more down. Aim for a DTI near or below 43%, provide two years of employment or income documentation, and plan to occupy the home as your primary residence. The home must pass an FHA appraisal to confirm value and safety.

Steps to improve your chances

Prepare early, fix small issues before applying, and compare offers from multiple FHA-approved lenders to find the best fit.

1. Check your credit and dispute errors.
2. Save for down payment and reserves.
3. Document income, W-2s, and tax returns.
4. Pay down revolving balances to lower DTI.
5. Get preapproved and rate shop within a short window.
6. Avoid new debt and large unexplained deposits.
7. Leverage gift funds or assistance programs if eligible.

Costs to budget for

Expect upfront MIP and annual MIP, closing costs, an FHA appraisal, and a home inspection (optional but wise). Building a cushion helps you close with confidence.