• Like
Todays Fha Loan
Upcoming SlideShare
Loading in...5
×
Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
376
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
6
Comments
0
Likes
1

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Today’s FHA Loan This is Not Your Father’s FHA!
  • 2. FHA Lending is Exploding
    • Now represents >30% of loans being written
    • Geared for:
      • First time buyers
      • Borrowers with little to no money
      • Buyers with less than perfect credit
      • Non-occupant co-borrowers
  • 3. Hot Features of FHA
    • 3.500% down payment
    • 6% seller concessions
    • All funds can be gifted
    • No reserve requirements
    • No income limits
    • Very competitive interest rates
  • 4. FHA Highlights
    • Limited to owner-occupied property
    • Available for 1-4 unit properties
    • High LTV available for OO 4 unit
    • No minimum credit score
    • Flexible down payment sources allowed
  • 5. FHA Highlights (cont.)
    • Manual underwriting common/allowed
    • Good documentation is the key
    • Borrowers in active Ch. 13 can buy
    • Manufactured housing allowed
  • 6. FHA Overview
    • Borrower must have 3.500% down payment
    • Pre-paids do NOT count toward 3.500%
    • Seller can pay up to 6% in cc/pp
    • Seller paid costs should always be applied to pre-paids first, then closing costs
  • 7. FHA Overview (cont.)
    • 1-4 unit purchases allowed
    • LTVs as high as 96.5%
    • 2-4 unit properties must be self sufficient
    • Gifts and grants are allowed toward down payment
  • 8. FHA Credit
    • No minimum credit score!
    • Some lenders impose their own min. FICO
    • Last 12 months should show no late pmts.
    • Judgments typically must be paid
    • Collections not required to be paid
    • Letter of explanation should be in the file for all bad credit
    • Non-traditional credit allowed
  • 9. FHA Property
    • Safety – Is the property safe?
    • Sound – Is the property sound?
    • Secure – Does the value support the loan?
    • The days of the VC sheet are gone!
    • FHA appraisals resemble conventional
    • Roofs and lead-based paint still an issue
    • Mfg. homes that have been moved are not eligible
  • 10. Property Flippers Beware!
    • Current owner must be on title 90 days
    • PA for the sale cannot be dated before day 91
    • Some lenders may require 2 appraisals
  • 11. FHA Loan Limits
    • Limits vary by county
    • Our county limit is: $
    • Loan limit is before UFMIP is included
    • Higher loan limits for 2-4 unit properties
    • Increased loan limits good thru 12-31-08
  • 12. Benefits to Using FHA with Your Buyers
    • Increases number of potential buyers
    • Increases traffic
    • Usually maintains sale/list price
    • Reduces time of home on market
    • Reduced cash requirement from buyer
    • One of few remaining ways to achieve $0 out-of-pocket expense to buyers
    • Competitive interest rates
    • No pre-payment penalty
    • Low monthly MI
  • 13. Discussion Time
  • 14. Partnerships are Critical
    • Not the time to refer 3 lenders!
    • You need one “go-to” lender
      • Wide array of lending products
      • Underwriting expertise
      • Credit specialist
      • Local and accountable
  • 15. Contact Screen Contact Jonathan Tafuri to see how FHA can increase your sales 401.440.3374 [email_address]