Using an FHA loan to Purchase a Home

The FHA loan program was created to help increase home ownership. The FHA program makes buying a home easier and less expensive than many other types of real estate mortgage programs. The FHA loan is a standard 30 year fixed rate mortgage made by a lender that is guaranteed by the Department of Housing and Urban Development (HUD).  In exchange for HUD's guaranteeing the lender against loss, HUD charges the borrower a 1% Up-Front Mortgage Insurance Premium which is financed into the loan and an annual mortgage insurance premium of 1.15%.  

Highlights:

• Down Payment and Closing Costs:

• Maximum loan amount is $276,000.00.
• The minimum down payment is 3.5% of Sales Price.
• Gift funds can be used for down payment and closing costs allowed.
• Seller can credit up to 6% of sales price towards buyers closing costs.

• Credit Qualifying Guidelines:

• No minimum FICO score or credit score requirements.*
• FHA will allow a home purchase two years after a Bankruptcy.
• FHA will allow a home purchase  three years after a Foreclosure. 

• Less restrictive underwriting Guidelines than conventional loans:

• Higher debt-to-income ratio's than other home loan programs.
• Less than two years on the job is allowed.
• Self Employment is acceptable.
• Eligible for most properties

*Restrictions apply