FHA LOANS
FHA Loans are now the most commonly used loans and have helped many credit challenged, first-time buyers and low-income families. Just about anyone can get an FHA loan. Borrower must intend to live in the home as his or her Primary Residence
Program Features
* Purchase, Refinance, Streamline, 203k
* 580 Minimum credit score for 96.5% Financing
* Max cash out up to 80% LTV
* Some may qualify for $100 Down Program
* The amount borrowed must be within FHA Loan Limits which vary by County and are higher in parts of the Country where real estate is more expensive
* Borrowers with No Credit Score – May utilize Non Traditional Credit
* One to Four Unit Homes, Manufactured, Approved Condos, PUDS
* FHA allows borrowers down to a 500 Credit Score Purchase at 90% LTV
* Terms Available – 30,25,20,15 and 10 Year Fixed Rate
Manufactured Homes are allowed to be purchased using FHA loans. Also able to do 203k as long as it is at least a Double Wide Home
Condominiums are allowed to be purchased using this program as well.
Down Payment Assistance is allowed to be used with FHA Loans
Eligibility Overview
The eligibility of this offered programs differs between each program and feature. For a comprehensive program guideline, see the program guideline link at the bottom of this section.
- 580 minimum FICO score
- Borrower must intend to live in the home as his or her primary residence
- The amount borrowed must be within FHA loan limits which vary by county and are higher in parts of the country where real estate is more expensive
- One to Four Unit Homes, Manufactured, Approved Condos, PUDs
FHA Streamline
Program Features
* Credit Qualifying and Non Credit Qualifying
* Maximum Cash Out of $500
* 10,15,20,25 and 30 Year Fixed Rate Term Options
Eligibility Overview
Here is an overview of the eligibility requirements for this loan program. View the Guidelines for the complete eligibility requirements.
- Minimum FICO of 580
- 1-4 unit primary residence
- FHA Approved Condos, Manufactured Homes, and PUDs
- At least six payments must have been made on the FHA loan that will be refinanced
- Minimum of six full months must have passed since the due date of the first payment on the FHA loan that will be refinanced,
- The FHA loan to be refinanced must have closed at least 210 days earlier, and
- If the Borrower assumed the Mortgage that is being refinanced, they must have made six payments since the time of assumption.
- The borrower cannot be behind on payments on the current loan
- There must be a “net tangible benefit” to the borrower to complete the transaction
Renovation Loan Program
Renovation loans can cover a wide range of projects around the home, from simple repairs and updates to complete remodels or additions. These loans are available to both purchase and renovate a home as well as for refinancing. The loan amount for a renovation loan is based on the “as-completed” value of the home rather than the present value. This factor increases how much homeowners can borrow for their renovation project
Program Features
* 580 Minimum FICO
* Max LTV – Purchase 96.5% Refinance 97.75%
* Primary Residence
* 1-4 Unit
* Manufactured Housing
* FHA Approved Condos
* Site Condo
* PUDs
* HUD REO
* Can be combined with DPA
Section 203(k) insures mortgages that cover both the purchase – or refinance – of a home and the rehabilitation of that home, so long as the home is at least one -year old. A portion of the proceeds from the loan is used to pay the seller – or if a refinance, to pay off the existing mortgage – and remaining funds are placed in an escrow account. Funds are released as rehabilitation is completed.
Eligibility Overview
Here is an overview of the eligibility requirements for this loan program. View the Guidelines for the complete eligibility requirements.
- Min 580 FICO
- Max LTV – Purchase 96.5%, Refinance 97.75%
- Primary Residences:
- 1-4 Unit
- Manufactured housing
- FHA Approved Condos
- Site Condo
- PUDs
- HUD REO
The cost of the rehabilitation must meet the minimum of $5,000, while the total value of the property must still fall within the FHA mortgage limit for the area. Some of the rehabilitation options available with a 203(k) Standard include structural alterations, modernization and improvements to the home;s functionality, elimination or health and safety hazards, eliminate obsolescence, recondition or replacing plumbing, replacing roofing, gutters, downspouts and adding or replacing floors.