The FHA loan program was created to help increase home ownership. This mortgage program makes qualifying for, buying, and refinancing a home easier and less expensive compared to other home loan programs. The income qualifying guidelines are more flexible than Conventional Home financing…conventional requiring 5% and FHA less than 5% down payment.
FHA Underwriting Guidelines…minimal down payment and closing costs
♦ Down payment 3.5% of Sales Price
♦ 100% financing options available…in certain circumstance
♦ Gift for down payment and closing costs allowed
♦ No reserves required
♦ FHA regulated closing costs
♦ Seller can credit up to 6% of sales price towards buyers costs
FHA Loan Requirements
Bankruptcy’s must be at least two year’s old with NO derogatory marks on credit since the bankruptcy
Our brief YouTube video post on FHA Loan Limits for Frisco and surrounding Dallas areas. Other recent post regarding FHA loan options for buyers, including FHA first time buyers.
[…] FHA is a government loan that allows for the least amount of down payment. In most cases, FHA mortgage rates are a little lower than conventional, but FHA also comes with a monthly mortgage insurance premium. FHA allows for a minimum down payment of 3.5% and allows the seller to pay 6% closing costs. Conventional lending will allow for a minimum down payment of 5%, and if you do not put down 20%, you pay a monthly Private Mortgage Insurance. If you are looking for the lowest payment and can’t put down 20%, FHA will in most cases provide you the lowest payment. If you can put down 5%, the higher payment option, is getting a 80% first conventional lien, and a 15% 2nd lien. Why would you choose the higher payment option? Typically, you can get the 2nd lien in a 15yr fixed, so you can fast forward the knocking down of principle in that second lien, if you are willing to go that route. […]