Requirements

What can stop me from getting an FHA loan?

Short answer

Common reasons FHA files don't close: low credit score or recent late payments, DTI too high without compensating factors, unverifiable or unstable income, unsourced or unseasoned large deposits, property failing FHA appraisal (peeling paint, roof, exposed wiring, broken systems), low appraised value, condo project not on FHA's approved list, occupancy intent issues, loan amount over the county limit, and lender overlays tighter than FHA's published rules.

Plain-English explanation

Borrower-side stoppers: credit (recent late payments hurt more than the score itself, fresh collections, recent bankruptcy or foreclosure inside FHA's seasoning window), income (gaps, brand-new self-employment, declining trends), DTI without strong reserves or compensating factors, large deposits without documentation, assets that aren't seasoned. Property-side stoppers: FHA appraisal flags MPR violations the seller won't repair, the appraised value comes in below contract price and the seller won't renegotiate, the property is a condo on a project not approved by FHA, the property type isn't FHA-eligible, or the loan amount exceeds the county FHA limit. Program-side stoppers: ineligible occupancy intent (investment property, second home), unresolved 90-day flip rule issues, identity-of-interest concerns. Lender-side stoppers: overlays above FHA's rules. Subject to FHA/HUD guidelines and lender overlays.

Practical example

A Florida buyer with a 600 credit score and 50% DTI gets a 'no' at one lender — same file at a more flexible wholesale channel may approve. A different buyer with strong credit but a property that fails FHA appraisal (peeling paint pre-1978, aged roof, broken AC) loses the deal unless the seller repairs.