FHA Loans and Maui Limits

FHA loans are a great option for first time home buyers, and home buyers that may have some credit issues, such as previous foreclosures and/or bankruptcy.  The most popular FHA program is the fixed rate loan (203(b)).  This loan allows for financing up to 97% of the home value which keeps the initial costs of obtaining the loan low.  This loan also allows for 100% of the closing costs to be gifted to the home buyer!

It is not necessary to meet a minimum income requirement in order to qualify for a FHA loan but debt ratios have been put into place to prevent borrowers from getting into a home they cannot afford. This is done through a close analysis of income and monthly expenses.

Below is the FHA limits when purchasing a home using this program.


FHA Limits by FHA.com

Before you start the FHA loan process, be prepared to provide some information.

  • Address to your place of residence (past two years)
  • Social Security numbers
  • Names and location of your employers (past two years)
  • Gross monthly salary at your current job(s)
  • Pertinent information for all checking and savings accounts
  • Pertinent information for all open loans
  • Complete information for other real estate you own
  • Approximate value of all personal property
  • Certificate of Eligibility and DD-214 (for veterans only)
  • Current check stubs and your W-2 forms (past two years)
  • Personal tax returns (past two years), current income statement and business balance sheet for self-employed individuals

In addition, you will need to pay for a credit report and appraisal of the property.

If you have had credit issues there may be some waiting periods.  Below are listed the 3 biggest credit issues and the waiting periods; more can be found at www.FHA.com.


FHA will consider approving a borrower who is still paying on a Chapter 13 Bankruptcy if those payments have been satisfactorily made and verified for a period of one year. The court trustee’s written approval will also be needed in order to proceed with the loan. The borrower will have to give a full explanation of the bankruptcy with the loan application and must also have re-established good credit, qualify financially and have good job stability.


At least two years must have elapsed since the discharge date of the borrower and / or spouse’s Chapter 7 Bankruptcy, according to FHA guidelines. This is not to be confused with the bankruptcy filing date. A full explanation will be required with the loan application. In order to qualify for an FHA loan, the borrower must qualify financially, have re-established good credit, and have a stable job.


FHA insured mortgages are generally not available to borrowers whose property was foreclosed on or given a deed-in-lieu of foreclosure within the previous three years. However, if the foreclosure of the borrower’s main residence was the result of extenuating circumstances, an exception may be granted if they have since established good credit. This does not include the inability to sell a home when transferring from one area to another.

If you have further questions regarding obtaining a FHA loan you can visit the official FHA site at: www.FHA.com.  We are also happy to assist you in finding a loan officer that has experience with FHA loans and help you from the beginning to the closing of your new home.  Call us today to start this very important and exciting journey.




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Alfy Sprenger, Principal Broker
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