Choosing FHA financing for your home loan is a wise decision. The costs associated with the loan program differ from other type of financing including smaller down payment, attractive interest rates, allowance of gift funds, 6% seller contributions and usually require less closing costs. The benefit to you, as the borrower, means less money at closing.
VITEK Mortgage offers various types of housing loans. These include:
- Adjustable Rate Mortgages
- Fixed Rate Mortgage loans
- Energy Efficient Mortgages
- Graduated Payment Mortgages
- Mortgages for Condominium Units
In order to qualify for an FHA housing loan, applicants must meet certain criteria, including employment, credit ratings and income levels. The specific requirements are:
- Steady employment history, at least two years in the same field.
- Consistent or increasing income over the past two years
- Credit report should be in good standing with less than two thirty day late payments in the past two years
- Any bankruptcy on record must be at least two years old with good credit for the two consecutive years.
- Any foreclosure must be at least three years old
- Mortgage payment qualified for must be approximately thirty percent of your total monthly gross income but even that requirement is flexible.
Competitive Rates & Terms
Today's terms are pretty straightforward. In fact, in many markets the rates and terms are better than Conventional FNMA or FHLMC loans.
Mortgage insurance is funded into the loan, meaning a premium of 1.0% is added to the loan balance instead of being paid out-of-pocket. In addition, a small portion for the mortgage insurance premium is added to the monthly payment, but it is far less than private mortgage insurance premiums on conventional loan programs.
Borrowers can finance 96.5% of the purchase price and put down 3.5 percent. In some instances, when combined with other types of loans, down payment assistance programs or grants from allowable sources, the down payment can be zero.
Allowable debt ratios are higher than the debt-ratio limits imposed for most conventional loan programs.
Fewer Required Repairs
In the past, FHA repair demands were so excessive that sellers would discount the list price to buyers who would agree to obtain conventional loans over FHA loans. Today the requirements appear more reasonable.
Defective roofs that leak still need to be replaced but an older roof does not require replacement if it passes a roof inspection by a licensed roofing contractor. Pest Control clearances are not always required but health and safety requirements must be met.
As for appraisals, a lender making an FHA-insured loan must use an FHA-certified appraiser who will walk through the house, taking notes and measurements, before estimating its value. On the bright side, the FHA doesn't discount the value the appraiser comes up with to account for a declining price environment, as many other lenders are now doing.
What is the new FHA loan limit for your area? In high-cost areas such as Los Angeles, and San Francisco Bay Area, the maximum FHA loan amount is $729,750. The maximum is lower in less expensive areas. To find the limit in your area, go back to my home page and click on the link: New FNMA/FHLMC Loan Limits. That will take you to the loan limit page for FHA and Conventional loans. Type in your state and county and it will provide you with the maximum loan amount limits for your area. The loan limits are the same for conventional and FHA loan programs.
For More Information on FHA and other loan programs, please contact Doug Bullwinkel at (800) 636-8910 or email at: Doug@LenderSolutions.com
Choosing FHA financing for your home loan is a wise decision. The costs associated with the loan program differ from other type of financing including smaller down payment, attractive interest rates, allowance of gift funds, 6% seller contributions and usually require less closing costs. The benefit to you, as the borrower, means less money at closing.
VITEK Mortgage offers various types of housing loans. These include:
- Adjustable Rate Mortgages
- Fixed Rate Mortgage loans
- Energy Efficient Mortgages
- Graduated Payment Mortgages
- Mortgages for Condominium Units
In order to qualify for an FHA housing loan, applicants must meet certain criteria, including employment, credit ratings and income levels. The specific requirements are:
- Steady employment history, at least two years in the same field.
- Consistent or increasing income over the past two years
- Credit report should be in good standing with less than two thirty day late payments in the past two years
- Any bankruptcy on record must be at least two years old with good credit for the two consecutive years.
- Any foreclosure must be at least three years old
- Mortgage payment qualified for must be approximately thirty percent of your total monthly gross income but even that requirement is flexible.
Competitive Rates & Terms
Today's terms are pretty straightforward. In fact, in many markets the rates and terms are better than Conventional FNMA or FHLMC loans.
Mortgage insurance is funded into the loan, meaning a premium of 1.0% is added to the loan balance instead of being paid out-of-pocket. In addition, a small portion for the mortgage insurance premium is added to the monthly payment, but it is far less than private mortgage insurance premiums on conventional loan programs.
Borrowers can finance 96.5% of the purchase price and put down 3.5 percent. In some instances, when combined with other types of loans, down payment assistance programs or grants from allowable sources, the down payment can be zero.
Allowable debt ratios are higher than the debt-ratio limits imposed for most conventional loan programs.
Fewer Required Repairs
In the past, FHA repair demands were so excessive that sellers would discount the list price to buyers who would agree to obtain conventional loans over FHA loans. Today the requirements appear more reasonable.
Defective roofs that leak still need to be replaced but an older roof does not require replacement if it passes a roof inspection by a licensed roofing contractor. Pest Control clearances are not always required but health and safety requirements must be met.
As for appraisals, a lender making an FHA-insured loan must use an FHA-certified appraiser who will walk through the house, taking notes and measurements, before estimating its value. On the bright side, the FHA doesn't discount the value the appraiser comes up with to account for a declining price environment, as many other lenders are now doing.
What is the new FHA loan limit for your area? In high-cost areas such as Los Angeles, and San Francisco Bay Area, the maximum FHA loan amount is $729,750. The maximum is lower in less expensive areas. To find the limit in your area, go back to my home page and click on the link: New FNMA/FHLMC Loan Limits. That will take you to the loan limit page for FHA and Conventional loans. Type in your state and county and it will provide you with the maximum loan amount limits for your area. The loan limits are the same for conventional and FHA loan programs.
For More Information on FHA and other loan programs, please contact Doug Bullwinkel at (800) 636-8910 or email at: Doug@LenderSolutions.com