You were told no on an FHA loan. Let's find your yes.
A no is not the end of the story. Most FHA denials come down to one fixable reason. We show you the real rule, the exact steps, and the timeline to get approved.
Real FHA rules, plain English. Guided by Home Loans Inc: Jason Sharon, Mortgage Broker. No judgment, no jargon, no guarantees - just a clear path.
"Your credit score is too low. You don't qualify for a mortgage."
FHA can go to 580 with 3.5% down, and 500 with 10% down. Here's your path:
- Fix the errors dragging your score down
- Lower your card balances (fast score lift)
- Manual underwriting reads your whole story
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Getting turned down stings. It also might be wrong.
A lot of FHA denials are not really "you cannot buy a home." They are "this lender did not want to do the work." FHA was built for buyers with lower scores, past bumps, thin credit, and higher debt. The rules to say yes are written down. Below, we match your no to the exact reason, then hand you the steps to turn it around.
Why FHA loans get denied - and how to fix each one
Find the reason you were told no. Each one links to the real FHA rule and your step-by-step path to approval.
Your credit score is too low
FHA goes to 580 (3.5% down) and 500 (10% down). Fix errors, cut balances, use manual underwriting.
See the path →Your debt-to-income is too high
FHA allows up to about 50%+ with compensating factors. Trim revolving debt or add a co-borrower.
See the path →Collections or charge-offs
FHA usually does not make you pay them off. Medical is excluded; charge-offs are exempt from the DTI hit.
See the path →A recent bankruptcy
Chapter 7: 2 years from discharge. Chapter 13: 12 months of on-time payments. Sooner with extenuating circumstances.
See the path →A foreclosure or short sale
The FHA waiting period is 3 years from the recorded date - and it can be shorter with a documented hardship.
See the path →You have thin or no credit
FHA accepts non-traditional credit - rent, utilities, phone, insurance - to build an approvable file.
See the path →Student loans blew up your DTI
FHA now uses your real payment; if it shows $0, only 0.5% of the balance counts. We show you how to document it.
See the path →You can't cover the down payment
FHA is 3.5% down, and 100% of it can be a gift. Down-payment assistance may cover the rest.
See the path →The house failed the appraisal
FHA minimum property requirements can be met with repairs, escrow holdbacks, or a re-inspection. Know who fixes what.
See the path →Three steps from "no" to approved
Find your real reason
Pin down exactly why you were told no. It is almost always one specific, fixable thing - not "you cannot own a home."
Work the fix
Follow the step-by-step for your reason: the documents, the credit moves, the waiting period, the timeline to ready.
Get a real answer
When you are ready, Jason reads your whole file with common-sense underwriting - not just a score - and shops 50+ lenders.
Told your file needs "manual underwriting"? That may be your yes.
Manual underwriting is not a punishment. It is a human being reading your whole story instead of a computer score - and for most people told no, it is exactly how the yes happens. In Jason's words:
"Here are the 5 things, that if I have them, I can promise you I can close your loan:"
- No late payments on your credit report in the last 12 months. Zip, zilch, nada, none.
- In the last 24 months, you can have up to 2 thirty-day late payments. Not 3 thirty-day lates, not 1 sixty-day late, only up to 2 thirty-day lates.
- Verifiable on-time rent payments for the last 12 months. An account invoice or ledger from your apartment complex, 12 cleared checks, or something that shows rent paid in the month due for the 12 months prior to closing.
- 2 times the new mortgage payment in savings, above and beyond your down payment and closing costs. This can NOT come as a gift, it has to be money you saved.
- Stable job history. Not a job hopper, no large gaps.
"Got all 5? Let's get you preapproved. If not yet, let's plan to talk soon."
Jason Sharon, NMLS #1281448. Subject to eligibility and lender guidelines.
FHA loans by state
Home Loans Inc is licensed for FHA loans in 10 states today, and expanding. Tap your state to start.
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Jason knows his stuff! We highly recommend him for your mortgage needs! He responds timely, provides information you didn't know you needed, puts the client needs first, and makes common sense adjustments throughout the entire process.
Jason and his team did an amazing job for me. They communicated often and made the entire mortgage process smooth and efficient. I can genuinely say that they are honest, trustworthy and strive to provide the best service possible to their clients.
Jason has been awesome since the beginning. He has been communicative, professional, KNOWLEDGEABLE, and honest. I am very happy with all my services so far, and I recommend UWM!
The questions people ask after a no
What credit score do I really need for an FHA loan?
FHA allows a score as low as 580 with a 3.5% down payment. If your score is between 500 and 579, you can still qualify with a 10% down payment. Below that, or with no score at all, a file can go to manual underwriting where an underwriter reviews your full picture. Lender minimums can be higher than FHA's floor, which is one reason a "no" from one lender is not a no everywhere. Subject to eligibility and lender guidelines.
I filed bankruptcy. How long until I can get an FHA loan?
After a Chapter 7 discharge, the standard FHA waiting period is 2 years, and it can be as short as 12 months with documented extenuating circumstances. In a Chapter 13, you may qualify after 12 months of on-time trustee payments with court or trustee approval. The clock and the paperwork matter, so it is worth mapping your exact date. Subject to eligibility and lender guidelines.
Do I have to pay off my collections and charge-offs first?
Usually not. FHA generally does not require you to pay off collection accounts to qualify. If your non-medical collections add up to more than $2,000, an underwriter typically counts 5% of that balance as a monthly payment, or uses a documented payment plan. Charge-offs are exempt from that calculation, and medical collections are excluded. Judgments generally need to be paid or on a documented plan.
My student loans got me denied. Does FHA count them differently?
Yes. FHA uses the actual monthly payment on your credit report. If that payment shows as $0 - common with deferment or some income-driven plans - the underwriter uses 0.5% of the outstanding balance instead of the old 1% figure. Switching to a documented income-driven payment before you apply can lower the number that counts against your debt-to-income.
I have no money for a down payment. Can FHA still work?
Often, yes. FHA's minimum down payment is 3.5%, and 100% of it can come from a gift from family, an employer, or a down-payment-assistance program, with a proper gift letter. Sellers can also contribute up to 6% toward your closing costs. There are sourcing rules, so plan the funds early. Subject to eligibility and lender guidelines.
Why does one lender say no and another might say yes?
FHA sets the floor, but individual lenders add their own stricter rules called overlays. A lender with high overlays might decline a file that FHA itself would allow. Home Loans Inc reads the whole file with common-sense underwriting and shops more than 50 lenders, so a no in one place is worth a second look. No approval is ever guaranteed.
Ready to turn your no into a yes?
Bring us the reason you were told no. We will read your full story, tell you the truth about where you stand, and lay out the exact steps to get you approved.
Or call (843) 569-7283 / 843.LOW.RATE