FHA Government Mortgage

You do not have to be a first time homebuyer to use a FHA insured loan

FHA insured mortgages are historically the most popular choice for home buyers and home owners without a large down payment or with limited equity in your home. Many people think that you have to be a first time buyer to use a FHA insured mortgage to buy a home, and this is simply not true.  You typically cannot have more than one FHA loan at a time, unless your employment requires that you move 100 miles away, and you must live in the home as your primary residence.

Borrower Requirements

  • Owner Occupied only – borrower must live in the home as a primary residence
  • Credit scores as low as 600 allowed without loan to value and debt to income restrictions
  • Credit scores as low as 580 allowed with loan to value and debt to income restrictions
  • Full income / asset documentation only – W2 and/or tax returns
  • 3.5% minimum down payment
  • No minimum borrower contribution required – 100% down payment can be gift
  • Approved buyer assistance can be used up to 100% combined loan to value
  • Maximum 46.99% front end, 56.99 back end debt to income ratio with automated underwriting approval

Loan Terms

  • 30 Year Fixed
  • 15 Year Fixed
  • 5/1 ARM – Adjustable Rate Mortgage
  • Upfront Mortgage Insurance Premium can be financed into loan amount
  • Annual Mortgage Insurance Premium (paid monthly)

Property Requirements

Properties eligible for FHA finaning include:

  • 1 family residence – single family residence (SFR)
  • 2 family residence – duplex (owner must occupy one unit)
  • 3 family residence – triplex (owner must occupy one unit)
  • 4 family residence – fourplex (owner must occupy one unit)
  • Single family Condominium – with HOA approval
  • Single family Townhouse – with HOA approval

Loan Limits

The maximum loan amount allowed when using an FHA insured mortgage is determined by the County you live in.  Loan amounts can also vary based on the number of units in the property.

Search FHA Loan Limits in your State and County Here

Waiting Periods after Credit Hardship

  • 2 Years from Discharge of Chapter 7 Bankruptcy
  • 1 Year from Discharge of Chapter 13 Bankruptcy
  • 3 Years from Foreclosure, Short Sale or Deed in Lieu of Foreclosure

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