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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