FHA Loan Overview

The FHA Loan is probably the most popular loan program these days with the low down payment, deductibility of M.I. for tax purposes, and the deflated market conditions, many homes in the Southern California area have fallen back under the conforming loan limits.  The following information gives the basic guidelines of the FHA Loan Program.

Thanks again to Eddie Khatchatourian for the following information on the FHA Loan Program.

FHA

Federal Housing Administration

    

FHA Features:

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1.      Up to 96.5% financing is available. 100% of the down payment and closing cost can be a gift.

2.      No prior credit history is required. Alternative credit references can be used (I.e. telephone bills, utility bills, canceled rent checks, etc.)

3.      Debt ratios up to 48% of gross income.

4.      Flexible underwriting with some derogatory credit is O.K.

5.      Very little cash reserves required.

6.      Seller can pay all closing costs, or certain required closing costs.

7.      The maximum loan limit for FHA loan is currently $417,000 and up to $729,750 in

         high cost areas.

8.      One-time up front MIP (Mortgage Insurance Premium) is charged to the borrower. The MIP equals 1.75% of the loan amount and is generally included in the loan.

9.      MMI (Monthly Mortgage Insurance) at approximately 1.35% of the loan amount is assessed monthly to the borrower up to eleven years.

10. Fixed and adjustable rate loans are currently available for FHA loans. The rate of the interest on adjustable can change by no more than 1% per year.

 

Why FHA ???

1.     Low down payment 3.5%

2.     Liberal qualifying ratios

3.     100% gift funds allowed from family member

4.     Multiple Co-borrowers allowed

5.     Choice of programs and interest rates

6.     Only minor seller participation required

 

For More Details or Free Pre-qualifying             For Professional Real Estate Service

                        Please Call                                                             Please Call       

  Eddie Khatchatourian                        Brett Bystrom

      Senior Loan Consultant  Since 1990                                Cell: 805- 338-6560

Cell: 805/444-4619  Office 805/ 413-8404                          BBystrom@troop.com     

        CFC Mortgage Bankers                                             DRE # 01759918                               

      License # 01096950   NMLS # 303892                                       Troop Real Estate Inc.