FHA Loans
FHA Loan Program Property Requirements
- Types Of Properties That Are Eligible
- Single Family Residence
- Town Homes, Multi Family Units up to 4 units.
- Warrantable Condos
- Manufactured and Modular Housing
- FHA Loan Limits
- The Federal Housing Administration (FHA) increased its single-family home mortgage limits by more than 15 percent in 2006
- Each county and property type are different
- Harris, Montgomery, & Fort Bend Counties - $200,160 SFR - $384,936 4-plex
- Appraisals & Inspections
- NO MORE FHA appraisal forms… Standard Fannie Mae appraisal form now utilized
- Revised repair and inspection standards- minor defects no longer have to be repaired in advance of mortgage closing
- No termite or other insect damage inspections unless there is “evidence of active infestation”
- Inspections are encouraged not required
FHA Loan Program Borrower Requirements
- Documentation Requirements (Full Documentation Loan)
The applicant must provide Income Documentation
- Most recent two years complete tax returns with all schedules.
- Most recent two years W-2's, 1099's, etc.
- Most recent pay stubs covering one month period.
- If Applicable: Self-Employed will need Three years Tax Returns and YTD Profit & Loss Statement.
- No income limitations or credit scoring enable more people to qualify for an FHA loan because they can afford the monthly mortgage payments and have reasonable credit.
The applicant must provide asset documentation
- Most recent three months complete bank statements for any and all accounts with all pages.
- Most recent statement from retirement, 401k, mutual funds, money market, stocks, etc.
The applicant must provide personal information
- Copy of Drivers License.
- Copy of Social Security Card.
- If Applicable: Copy of complete Divorce, Palimony, Alimony Papers.
- If Applicable: Copy of Green Card or Work Permit.
- If Applicable: If you own another home(s) - see below
The FHA Loan Program Requirements
- Seller is no longer required to pay FHA borrower non-allowable fees (except Tax Service Fee) $95
- No pre-payment penalties
- All cost – including the down payment (3% required) – can be gifted from A down payment assistance program or a gift.
- Gift Funds up to 6% of the sales price to be applied to your down payment and closing costs.
- No repayment of gift funds. That’s right, it is truly a gift.
- No geographical restrictions.
- New or resale homes are eligible.
- First time and repeat home purchases.
How to write the sales contract
** In section 11 write in “Seller will contribute 3% towards down payment of buyer to non-profit down payment assistance program.
** In section 12 seller can pay all of buyers closing costs and escrows. 6%
** Indicate FHA loan in financing addendum.
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