Many borrowers wrongly assume that qualifying for a mortgage loan would be difficult if they seek an FHA home loan. This is far from the truth. Federal government loans (FHA and VA) are even easier to qualify since they are insured by the government by means of mortgage insurance premium (MIP).

The Federal Housing Administration (FHA) is part of and controlled by HUD (Department of Housing and Urban Development). FHA mortgage loans are great for borrowers with moderate income and/or first time home buyers who do not have a lot of money for the mortgage down payment and would like to qualify under liberal guidelines. There is no maximum income limit to qualify but there is a maximum on the mortgage loan amount and you should allocate 30% of your gross income for the mortgage payment.