For anyone looking to understand the official FHA guidelines, the primary resource is:

HUD Handbook 4000.1 - FHA Single Family Housing Policy Handbook

Once on that page, click the “Active Housing Handbooks” dropdown, then locate 4000.1. Under that, you’ll find the FHA Single Family Housing Policy Handbook (PDF), this is the full rulebook covering FHA mortgage programs.

Note: The PDF is 1,800+ pages, so I recommend right-clicking to save it to your computer for easier searching and reference.

What’s Inside?

Inside, the handbook covers:

• Forward mortgages (the most common FHA home loans)
• Reverse mortgages (Home Equity Conversion Mortgages)
• Renovation programs (like FHA 203(k))
• Manufactured housing loans
• Requirements for lenders and institutions working with FHA

For most borrowers and originators, the key section to focus on is:

This section details:

• Maximum loan-to-value (LTV) ratios
• Acceptable property types and standards
• How the TOTAL automated underwriting system works
• Manual underwriting guidelines
• How income is analyzed and calculated (see below for how commission income is treated, for example)
• Acceptable sources for down payment funds
• Minimum credit score requirements
• Everything needed to underwrite an FHA mortgage

FHA guidelines on using commission income to qualify

Why Keep Up With It?

The handbook is updated periodically, usually at least twice a year. While many updates are minor, even small changes can have big impacts if you’re actively working with or applying for an FHA loan.

I’ll be referring back to it in future posts where I break down key sections, explain common questions, and help make FHA guidelines easier to understand.

Feel free to drop questions.