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If your FICO score is as low as 500, you may still qualify. It would help if you could show reasons why the lender should look past the score and if you have money in the bank. The required FICO score is 620 but many people qualify with lower scores.

You will be required to have at least 3 active trade lines for 24 months that are currently active. Also, if you are making mortgage payments, none can have been late for 12 months. If there have been any late payments, provide a signed letter stating why.

Proof of income and employment are also requirements. You will be required to submit a copy of the past 2 year's tax returns and a few pay stubs showing the same employer. If you are self employed, you will have to submit your tax returns for the past 2 years and they must show you have been in the same business during that time.

Also to qualify an individual must have a debt to income ratio of no more than 40/50. This means the all revolving debt plus mortgage, property tax and insurance cannot equal more than 50% of an individual's monthly gross income. The lower the ratio the better chance of getting the loan.

A FHA lender will require a minimum of 3.5%, which is much less than conventional lenders. The down payment can be a gift from family or employer. When that is the case, the funds must be verified and have been in a person's bank account for at least 60 days.

Choose a house that does not have any issues such as flooring that is not finished or roofs that leak because the appraisal is stricter. The appraisal must also be completed by a FHA approved company that is also HVCC compliant. Read more about: fha loan requirements