: Most lenders look for a DTI ratio of 43% to 45% or lower.

: You must pay an upfront mortgage insurance premium (MIP) of 1.75% and annual premiums for the life of the loan. Overcoming Property Condition Issues

The biggest hurdle is the , which ensures the home meets HUD's Minimum Property Standards for safety and habitability. Many foreclosures are sold "as-is" and may have major issues that disqualify them from standard financing. The FHA 203(k) Solution FHA loans for foreclosures - Rocket Mortgage

: You typically need a score of 580 to qualify for the 3.5% down payment option. Scores between 500 and 579 may be eligible but usually require a 10% down payment.

To use any FHA product for a foreclosure, you must meet the following baseline criteria: