What rules make it easier to qualify for FHA financing?
In recent years FHA has make qualifying easier. Some improved standards include:
- • Allow overtime income if regular and expected to continue.
- • Dump the old five-year test for income stability.
- • Accept part-time income if regular and expected to continue.
- • Child care expenses not counted as a debt
- • It’s okay to use “mattress” cash for closing — that is, accepting cash from individuals who do not have accounts with banks, S&Ls, etc. in certain instances.
- • Allow some flexibility with 31/43 guidelines.
- • Two months of bank statements instead of three.
- • Lower up-front costs for the Mortgage Insurance Premium (MIP).
- • Dump the old five-year test for income stability.
For details, speak with lenders regarding your specific situation.

