FHA Presentation
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FHA Presentation



The most popular form of home financing is FHA. Learn the benefits and call me.

The most popular form of home financing is FHA. Learn the benefits and call me.



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    FHA Presentation FHA Presentation Presentation Transcript

    • Welcome Linked In Partners
    • Today’s FHA Loan This is Not Your Father’s FHA!
    • 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
    • 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
    • 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
    • FHA Highlights (cont.)
      • Manual underwriting common/allowed
      • Good documentation is the key
      • Borrowers in active Ch. 13 can buy
      • Manufactured housing allowed
    • 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
    • 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
    • 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
    • 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
    • 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
    • FHA Loan Limits
      • Limits vary by county
      • Our county limit is: *$410,000
      • Loan limit is before UFMIP is included
      • Higher loan limits for 2-4 unit properties
      • *Increased loan limits good thru 12-31-08, after that may go back to previous of $275,200.
    • 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
    • Questions
    • 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
    • My Contact Information Ron Vivoli (630) 514-9655 Office Ron @MortgageConnects.com Two locations: 16 E. Merchants Drive 564 S. Washington Oswego IL 60543 Naperville IL 60540