Is An FHA Loan For Me?*
If you have mild credit issues, recent short-sales/ bankruptcies/or foreclosures, or you want a loan with a smaller down payment than other popular programs, an FHA Loan may be a good choice to buy your next home.
- Less cash up front.
- No income restrictions.
- Minimum Down Payment: 3.50% which can come from Immediate Family, Labor Union, Employer Group, Non Profit 501C3 and other approved sources.
- No minimum FICO requirements but most investors are holding to their own established minimum credit score corporate overlays.
- Can utilize other state, county and city programs, and Energy Efficient Mortgage options.
- Both Fixed-Rate and Adjustable-Rate loans permitted.
- Refinancing is allowed, at high loan to value ratios.
- No requirement for reserves.
- Maximum Seller Concession: 6%.
- Borrower can now pay previously non-allowable fees “processing, doc prep, underwriting, lender fees” *Except Tax Service fee.
- Non-Occupying co-borrowers allowed.
- FHA Loans are assumable.
MORE FHA LOAN FACTS*
- Up Front MI of: 1.75%, added to Loan.
- Monthly MI of: 1.25%.
- Maximum Loan Amount SFR: Loan amounts are set by counties. In many Northern California counties, the limit is $580,000. Loan amounts above $417,000 have additional costs and or rate increases. In the San Francisco Bay Area, FHA loan limits are as high as $729,750.
- Declining market is not observed by FHA.
- Roof & Pest inspections not mandatory unless noted by appraiser or called for in contract.
- Do not have to be a first-time buyer.
- Must be owner occupied.
- Non-traditional credit “telephone, PG&E, etc” allowed if there is no FICO available. Rates and fees are adjusted higher for these loans.
- FHA requires 90 days from date of trustee sale before purchase contract can be written unless REO is a federally chartered bank.
Let's get started! *For loan examples and more information please visit www.apmortgage.com/disclosures.