What does FHA require from borrowers regarding employment?

FHA guidelines emphasize the importance of borrowers demonstrating a reliable and consistent source of income, which is encapsulated in the requirement for a steady income. This criterion ensures that borrowers have the financial stability necessary to meet their mortgage payments over time. A steady income can come from various sources, whether through employment or other consistent forms of income, and helps lenders assess a borrower’s ability to repay the loan.

The need for stability is paramount in the FHA's focus on mitigating risk in lending. Therefore, while having a job for a certain duration or being self-employed for a specified time can be relevant factors in assessing income stability, the overarching requirement is that borrowers should have a steady income to qualify for FHA loans. This provides flexibility in how borrowers can demonstrate their financial viability, without strictly adhering to time-related job requirements.