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No minimum credit score –FHA does not have a minimum credit score requirement. The FHA underwriter will evaluate the entire credit profile to determine the borrower’s likelihood of repayment. Past credit issues may be overlooked if new credit has been re-established. Also, other compensating factors may apply.

Bankruptcy okay – Chapter 7 bankruptcies are allowed if discharged over 2 years ago (or 1 year with extenuating circumstances). Chapter 13 bankruptcies are allowed with a minimum of 1 year of on time plan repayment and trustee approval.

Less Money Needed - FHA loans allow the seller to pay up to 6% of the sales price toward the closing costs and only require a 3.5% down payment.

Housing History– FHA does not require a rental or other housing history if it is not available.

Non-occupying co-borrower allowed – FHA allows a non-occupying relative to co-sign the mortgage. The non-occupant’s income and assets can be used for qualification purposes. This is generally used for parents to help their children buy a home.

Property types - 1-4 unit, condos, town homes, modular homes, and manufactured homes .

No cash reserves required –  FHA does not require you to have cash reserves on 1-2 unit properties.