Current Mortage NEWS

FHA Loans …….An Update.

  • FHA loans offer more mortgage solutions for people with credit limitations, limited income and limited funds to close.
  • The minimum investment into the transaction is just 3%. This means that if a customer is paying closing costs, the minimum down payment can be less than 3%.
  • Customers can use (verified) gift funds to close. The gift may also be used for the customer’s minimum cash investment requirement.
  • Seller’s can pay up to 6% of the sales price towards the customer’s closing costs, discount points and pre-paids.
  • Seller’s can pay an additional 6% of the sales price towards a gift swap program (Nehemiah, AmeriDream, Genesis). This money can be used to pay the customer’s down payment, closing costs and escrows.
  • Non-occupant co-borrowers allowed-
    • his feature allows customers with limited income to purchase a home using a non-occupant co-borrower’s income. This is especially helpful for parents who wish to help children in school or recently graduated, purchase a home.
  • Single-wide manufactured homes allowed.  Single-wide manufactured homes are an affordable entry point for many prospective home buyers. FHA allows you to offer financing to these customers.
  • No reserves are required for 1 and 2 unit properties.
  • Up to 4 unit property financing allowed- Great alternative to conventional financing.
  • FHA has strict guidelines to prevent property flipping. For example, any resale of a property may not occur 90 or fewer days from the last sale to be eligible for FHA financing. Recent Change: Bank owned properties don’t apply.