Todays Fha Loan

373 views

Published on

Updated FHA loan program 2009

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
373
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Todays Fha Loan

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

×