FHA Loan Requirements For Income Documentation

One of the keys to getting a FHA home loan in California is being able to document your income to qualify for a FHA home loan.  Below are some keys to documenting your income:

  • Generally you need to be able to verify two years of employment history to qualify for a FHA loan, but there are MANY exceptions to this:
    • If just out of college you just need to be on the job about a month if you job is in you field of study
    • If just back on the job after being unemployed or for maternity/paternity leave you generally just need to be back on the job 6 mos (in this case you would need to verify two years of employment before your gap in employment
  • Overtime and bonus the last two years must be averaged
  • Part time work, FHA guidelines state you must have had it for two years to count it
  • Commission income must be averaged over the last two years
  • Unreimbursed business income must be subtracted from borrowers income for FHA loan qualification
  • Alimony and child support can be counted as income for FHA loan approval
    • Must continue for three years, need to document with divorce decree
    • Evidence receipt the last 12 mos
  • Self-employed borrowers or 1099 independent contractors
    • Last two years of federal tax returns required and NET income of the last two years will be averaged

So those are some keys related to income to qualify for a FHA home loan in California.  Please give us a call at 858-922-7899 or email at homeloan8@gmail.com if you have any questions about your income or would like to get approved for a FHA loan in California.

Below are some of the very most up-to-date highlights of FHA loan in California:

  • FHA loan interest rates are still near 60 year lows
  • FHA loan limits in many California areas such as Los Angeles, Orange County, San Jose, San Francisco and San Diego go up to $729,750 or close to this.
  • FHA loan requirements allow for higher debt-to-income ratios than conventional loans
  • FHA loan credit score does not have to be perfect and we can assist you with working on raising your score


Rob Chomentowski

Sr. Loan Officer (and FHA, VA, conventional, Homepath specialist)



Leave a Reply