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

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
** 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. FHA Lending is Affordable
Experience Matters!
Peter Boyle
612.701.6816
20 Yrs Mortgage Experience
www.PeterBoyleHomeLoans.com
pboyle@summit-mortgage.com
NMLS# 218261
Summit Mortgage Corporation