HUD audit for mortgage loan eligibility?

What are the qualifications for this loan?

Generally, your house payment has to be less than 28 percent of your gross monthly income, and the percentage of long term debt shouldn't exceed 35 percent of your income. You must also have an acceptable FICA credit score.

The easiest way to deal with the qualifications is to choose a real estate agent and ask them to pre-qualify you. Based on the financial information you provide them, they can tell you what value home you should look for.