With so much talk in the news about the ‘credit crisis’ and the mortgage meltdown, I understandably am asked frequently, “How can anyone qualify for a loan nowadays?” And, most folks asking would like to buy a home, but just figure that they cannot qualify.

So, let’s look at what it takes to qualify for a home today. It’s not as daunting as you would think. Oh, and in this case I am going to focus on FHA loans. Much of the same applies to other mortgage types, with some differences.  You will need:

• A minimum 620 credit score.  That is your middle credit score, ignoring both the high and the low scores. Hint:  If you don’t have a 620 currently, raising a credit score is often very quick and painless.
• No unpaid Judgments.  Generally, those need to be paid.
• A relatively clean credit history for the past 12 months.  Few or no late payments, and no collections.  The most common exception to that rule involves medical collections.
• Chapter 7 bankruptcies must be discharged for 2 years, with some very difficult to qualify for exceptions.
• Chapter 13 bankruptcies must have been paid on for at least 1 year, and you will need court approval to buy a home.
• And, three years past a foreclosure.