Today’s       FHA LoanThis is Not Your Father’s FHA!
FHA Lending is Exploding• Now represents >30% of loans  being written• Geared for:  –   First time buyers  –   Borrowers w...
Hot Features of FHA•    3.500% down payment**•    6% seller concessions•    All funds can be gifted•    No reserve require...
FHA Highlights• Limited to owner-occupied  property• Available for 1-4 unit properties• High LTV available for OO 4 unit• ...
FHA Highlights (cont.)• Manual underwriting  common/allowed• Good documentation is the key• Borrowers in active Ch. 13 can...
FHA Overview• Borrower must have 3.500% down  payment**• Pre-paids do NOT count toward  3.500%• Seller can pay up to 6% in...
FHA Overview (cont.)• 1-4 unit purchases allowed• LTVs as high as 96.5%**• 2-4 unit properties must be self  sufficient• G...
FHA Credit• Some lenders impose their own min.  FICO• Last 12 months should show no late  pmts.• Judgments typically must ...
FHA Property• Safety – Is the property safe?• Sound – Is the property sound?• Secure – Does the value support the  loan?• ...
Property Flippers Beware!• Current owner must be on title 90 days• PA for the sale cannot be dated before  day 91• Some le...
FHA Loan Limits• Limits vary by county• Twin City Metro county limit is:  $365,000• Loan limit is before UFMIP is included...
Benefits to Using FHA• Increases number of potential buyers• Increases traffic• Usually maintains sale/list price• Reduces...
FHA Lending is AffordableExperience Matters!Peter Boyle612.701.681620 Yrs Mortgage Experiencewww.PeterBoyleHomeLoans.compb...
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FHA Mortgage Home Loan Benefits!

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FHA low down-payment loans are affordable. Take advantage of this market and speak to an FHA seasoned professional about your FHA options today!

Published in: Economy & Finance, Business
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FHA Mortgage Home Loan Benefits!

  1. 1. Today’s FHA LoanThis is Not Your Father’s FHA!
  2. 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. 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 ** as of the date of publishing, May 16, 2011, the interest rate and APR available for this loan are 4.5% (5.317% APR). Interest rates can change on a daily basis and are affected by numerous factors. Please call your lender for a specific quote
  4. 4. FHA Highlights• Limited to owner-occupied property• Available for 1-4 unit properties• High LTV available for OO 4 unit• Flexible down payment sources allowed
  5. 5. FHA Highlights (cont.)• Manual underwriting common/allowed• Good documentation is the key• Borrowers in active Ch. 13 can buy• 2yrs from Chapter 7 BK• 3yrs from short sale, Deed in Lieu or foreclosure
  6. 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 ** as of the date of publishing, May 16, 2011, the interest rate and APR available for this loan are 4.5% (5.317% APR). Interest rates can change on a daily basis and are affected by numerous factors. Please call your lender for a specific quote
  7. 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 ** as of the date of publishing, May 16, 2011, the interest rate and APR available for this loan are 4.5% (5.317% APR). Interest rates can change on a daily basis and are affected by numerous factors. Please call your lender for a specific quote
  8. 8. FHA Credit• 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• Any account showing “disputed” on credit report must be resolved
  9. 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• Manufactured homes that have been moved are not eligible
  10. 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• Title can not have transferred in last 90 days: Exception 1- Bank foreclosures or non-profit sellers. Exception 2- Private investors who improve the properties (Significant additional restrictions apply)
  11. 11. FHA Loan Limits• Limits vary by county• Twin City Metro county limit is: $365,000• Loan limit is before UFMIP is included• Higher loan limits for 2-4 unit properties
  12. 12. Benefits to Using FHA• 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
  13. 13. FHA Lending is AffordableExperience Matters!Peter Boyle612.701.681620 Yrs Mortgage Experiencewww.PeterBoyleHomeLoans.compboyle@summit-mortgage.comNMLS# 218261Summit Mortgage Corporation

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