FHA Home Loan
- Down payment 3.5% of purchase price and that money can come from family member, or gift.
- Seller may contribute up to six percent of property purchase price toward closing costs.
- Borrowers pay an up-front insurance premium at the time of purchase, as well as monthly insurance premiums that are not financed, but instead are added to the regular mortgage payment. Up-front mortgage insurance premiums shall be paid or financed into loan.
- FHA generally will not insure more than one mortgage for any borrower.
- Lender will verify income, assets, liabilities, and credit history for all the parties on the loan.
- You must have a valid social security number, and have lawful residing in the united State.
- Lock in a low interest rate. Lower down payment. FHA is insured by the US Government.
- We offer 30 year fixed loan program. Credit scores as low as 640 now qualify for an FHA loan.
- FHA also allows seller concessions up to 6% of your home purchase price.
- FHA is for owner occupied homes only meaning you intend on living in the property. You may own a rental property that is not financed by FHA and still use an FHA loan to purchase a primary residence.
- 1-Single Family Homes 2-Condo’s 3-PUD’S
- The underwriter will review all of the following aspects of the file.
- Income and Debt Ratio-Employment History- Credit History-Saving- Down Payment–Appraisal
When you apply for an FHA home loan, there’s a list of documents and documentation needed to process an FHA loan application. These are the minimum needed to establish an accurate picture of a borrower’s credit and payment history. Your lender will ask for everything from bank account numbers to a list of residences and employers from the last two years. It all goes toward establishing the borrower’s credit, income, and employment with the most up-to-date information available.
When collecting this documentation, the loan officer or underwriter must fulfil bank requirements, federal law and FHA rules that cover the type of loan being applied for; in some cases that means getting official copies of tax returns and other information.
Most applicants are required to furnish copies of their W2s from the last two years; W2s document the borrower’s net and gross income plus applicable taxes and withholding, and serves as a record of actual wages earned (which verifies what the borrower listed as income on the FHA mortgage loan application.)
But self-employed borrowers have additional requirements. Any applicant who owns their own business or works for themselves need to verify their income with the actual tax forms submitted for the last two years.
Borrowers cannot simply hand over copies of their version of the returns–the tax returns must be sent directly from the IRS, just like credit reports must come directly from the credit reporting agencies. Borrowers may be required to sign a release authorizing the underwriter or loan officer to request IRS forms on your behalf.
Those who are not self-employed are often able to furnish the W2s with no additional paperwork needed except for that which may be required by the FHA or banking regulations, but release forms may still be required so the lender can obtain credit reports and related information.
Borrowers wishing to purchase a home with an FHA loan may need some help with the down payment. There are rules that permit a borrower to receive such outside help, but the source and purpose of these funds are carefully regulated under FHA mortgage loan rules.
Credit issues worry some FHA loan applicants. Not knowing how the lender will interpret some kinds of negative credit information causes a lot of anxiety for new borrowers. However, having a collection account on your record may not be an automatic barrier to getting an FHA mortgage.
FHA Lowers Mortgage Insurance Premiums for 2017
The Federal Housing Administration is lowering mortgage insurance premiums on FHA mortgage loans in 2017. When you purchase a home with an FHA mortgage, part of your mortgage payment includes a required annual mortgage insurance premium (MIP).
FHA Loan Debt to Income Ratio Rules for 2017
Your FHA loan options in 2017 include new purchase loans, reverse mortgages, cash-out FHA refinance loans, and much more. Borrowers should take some time to review their last 12 months of credit and loan repayment history in preparation for the new loan.
Income and Debt Ratios for FHA Mortgages
What does a borrower needs to know when preparing to apply for an FHA mortgage? There is a list of items to pay attention to that does include FICO scores; you may find that lenders are looking for FICO scores averaging between 620 and 640.