• HUD loan requirements vary from traditional mortgage requirements.home sweet home image by David Dorner from Fotolia.com
  
  The federal Department of Housing and Urban Development, or HUD, partners with the Federal Housing Administration to provide mortgage insurance to singles and families with special circumstances. The FHA works with approved lenders to provide these loans. The FHA and HUD have developed several qualifications to determine who is eligible to borrow through these programs.
  
  

Employment

• The applicant must have been steadily employed for two years before the loan application. While HUD prefers that employment be with the same employer, that is not mandatory. The lender must be able to verify employment through tax statements, pay stubs or by calling your current and previous employers for confirmation.
  
  

Income

• During the past two years, the applicant's income should be steady or increasing. In all circumstances, monthly net income in the previous two years must exceed the monthly amount due on the requested loan. This income can come from a variety of sources such as employment, alimony and Social Security payments.
  
  

Credit

• HUD requires all applicants to have a credit score of 620 or higher. In addition, the agency will look primarily at the most recent two years of credit history. During that time the applicant can have no more than two 30-day late payments. If the applicant filed for bankruptcy, the file must be at least two years old and the applicant must have maintained perfect credit since that time. In some cases, such as the First Time Homebuyers Program, the applicant may not need a credit score.
  
  

Foreclosure

• Applicants who have previously had a foreclosure may be eligible for the HUD mortgage program. The foreclosure must have occurred at least three years ago, and the applicant must have maintained a perfect credit rating since the foreclosure was filed.
  
  

Payment Eligibility

• To qualify for a HUD-insured mortgage, applicants must prove that the mortgage payment won't be more than 30 percent of their total gross monthly income. This is typically determined through pay stubs.