Benefits of FHA

 

•No Prepayment Penalties
 
•FHA loans are assumable
 
•No credit qualifying FHA to FHA refinances
 
•Up Front Mortgage Insurance Premium 1.75 can be financed. MIP will increased by 50 bpd to 2.25
 
•Monthly MIP .55 must be paid for the greater of 5 years or until the loan is paid down to 80% Loan-To-Value (LTV)
 
•No monthly MIP for Mortgage terms 15 years or less and LTVs Below 90%.
 
•Low down Payment of 3.5 % cash investment

 

•Minimum FICO score of 580 to qualify for 3.5 down payments less than 580 FICO will require at least 10% down payment 
 
•Higher Qualifying ratios of 31/43, higher with compensating factors
 
•Automated Underwriting Systems may be used to process FHA loans (using the TOTAL Scorecard)

 

•No credit history required, alternative credit, self employment okay and nontraditional credit history allowed
 
•Collection accounts need not be paid off
 
•Bankruptcy Chapter 7 if more than 24 months, Chapter 13 if Court allows
 
•Reserves are not required

 

•Co-Borrowers and Co-Signers considered in determining creditworthiness
 
•Down Payment Assistance available from Local Government and Family members
 
•Seller paid cost are permitted up to 6%.
 
•Repair escrow financing available
 
•Revised repair and inspection requirements for appraisals

 

•Citizenship is not required
 
•Must be eligible to work in United States
 
•Down Payment is not required for Disaster Victim 203(h) loans.
 
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