FHA Loan Programs
The Federal Housing Administration offers a number of loan programs that are perfect for first time home buyers. You do not have to be a first time home buyer to qualify. The low minimum down payment of 3.5% and Debt to Income levels make FHA loan programs some of the easiest program to qualify for. FHA offers refinances that can lower payments, lower rate, take cash out, make repairs and renovations. Home Purchases from houses in good shape to houses that need a little TLC.
FHA Loan Overview
- 580 Or Higher FICO Score (but can go as low as 500)
- No Installment Late Payments In Last 12 months
- No Bankruptcy In Last 2 Years
- No Foreclosures In Last 2 Years
- 2 Years Of Employment History In Same Field Of Work
- Self Employed Allowed
- Social Security Income Allowed
- Long Term Disability Income Extending At Least 3-Years Allowed
- Debt To Income Ratio Under 45%(Up To 59% DTI under Certain Situations
- Home Purchase Needs Funds To Cover The Down Payment
- Funds To Cover Closing Costs
- Funds To Cover Reserves If Required By Underwriter
- Down Payment Can Be Gift Gunds
- Final Loan Amount Needs To Be Under FHA County Loan Limit
- Property Types allowed are Single Family Residences, Multi-Family, Condo, & Manufactured Homes
- Only Primary Residence Allowed
- Property Appraisal Must Meet FHA Guidelines
Program Information
FHA Purchase
- FICO as low as 500 (580 preferred*)
- 3.5% minimum down payment
- 1.75% Upfront Mortgage Insurance Premium Financeable
- 30YR, 25, 20YR, 15YR, and 10YR Fixed Term
- ARM options available
- Renovation Purchases available
- HUD Rehab Purchases available
- Debt To Income Ratio up to 45% (up to 59% under certain situations)
- Only Primary Residence Allowed
- Seller Credit up to 6 % Allowed
FHA Refinance
- FICO as low as 500 (580 preferred*)
- 3.5% equity required
- 1.75% Upfront Mortgage Insurance Premium Financeable
- 30YR, 25, 20YR, 15YR, and 10YR Fixed Term
- ARM options available
- Streamline refinances available
- Renovation 203(ks) refinances available
- Cash Out refinances available
- Debt To Income Ratio up to 45% (up to 59% under certain situations)
- Only Primary Residence Allowed
*If FICO is less than 580, then the maximum loan-to-value (LTV) eligible is 90%.
FHA Loan Programs
The FHA 203(b) loan program is the most common FHA loan program used for home purchases. Requires 3.5% down. Has a 1.75% upfront Mortgage Insurance Premium that can be included in the loan.
The FHA 203(b) Rate Term Refinance is a loan program that lets you lower your rate, change your loan terms and the ability to take out a small amount cash.
The FHA 203(b) Cash Out Refinance is a loan program that allows you to take out cash from the equity in your home. You can also lower your rate and change your terms. Or you can use the equity in the house to pay off debt by including the debts in the loan. The debts will be paid off when the loan closes.
The FHA 203(K) Renovation Purchase Program allows homebuyers to purchase a home along with the cost of repairs, changes or upgrades to the house . The house will be be repaired or upgraded before you move in and the cost of the home changes are just included in your loan. There are a small number of limitations to what you can include in the loan.
The FHA 203(b) Streamline loan program allows Home owners with a FHA loan to refinance quickly and with no appraisal. Your Credit Score is checked to make sure all your mortgage payments were made on time. This program has the quickest closing time and with little to no cost. You can lower your rate and change terms.
The FHA 203(K) Renovation Refinance Program allows qualified home owners to add the cost of home repairs, changes or upgrades into a new loan. Your house is appraised before the changes. Then it is appraised after the changes. You can also lower your rate and change your loan terms at the same time.
The FHA 203(KS) Streamline Renovation Refinance Program allows qualified home owners to add the cost of small home repairs, changes or upgrades into a new loan. The Streamline Renovation Program limits what repairs can be done and is best for small changes to your home. Your house is appraised before the changes. Then it is appraised after the changes. You can also lower your rate and change your loan terms at the same time.
The FHA 203(B) $100 Down HUD REO Loan Program allows borrowers to purchase homes that are in need of repairs and are approved by HUD. This allows you to buy the house with a low down payment and then you use your own funds and time to repair the house. This helps the community and your home value will go up. Once the house is repaired to FHA standards you will have the ability to refinance using one of the FHA refinance Programs.
FHA Tools
FHA Low-Cost Area Loan Limits
The FHA national low-cost area mortgage limits, which are set at 65 percent of the national conforming limit of $766,550 for a one-unit Property, are, by property unit number, as follows:
• One-unit: $498,257
• Two-unit: $637,950
• Three-unit: $771,125
• Four-unit: $958,350
FHA High-Cost Area Loan Limits
The FHA national high-cost area mortgage limits, which are set at 150 percent of the national conforming limit of $766,550 for a one-unit Property, are, by property unit number, as follows:
• One-unit: $1,149,825
• Two-unit: $1,472,250
• Three-unit: $1,779,525
• Four-unit: $2,211,600
