FHA Government Insured Loans 3.5% Down Payment
A 3.5% down payment will get you a FHA Government Insured Loan !
(Owner Occupied Only)
(Effective Jan 1, 2009)
Condos & Townhouses $729,750
Single Family Houses $729,750 / Two Family Houses $934,200
Three Family Houses $1,129,250 / Four Family Houses $1,403,400
Employment:
Must be employed for the past 24 months in the same field (different jobs and self employed are acceptable)
Down payment:
You must have a minimum of 3.5% of the mortgage amount. (Gifts are acceptable) Ex. $400,000 loan = $14,000 down payment.
Credit Score:
Minimum credit score of 580-620
Closing Cost:
Your Closing cost will be approximately 5-6% of the mortgage amount. They may included the following: (All of these costs up to 6% of the purchase price may be paid by the seller as a contribution including the down payment)
FHA mortgage insurance premium 1.75% of Loan(this is the only cost that can be financed into the loan)
Title Search and Insurance
Hazard Insurance Escrow
Property Tax Escrow
Attorney Fees
Appraisal Fees
Mortgage Tax
Filing Fees
Reserves:
To qualify, you will need to have at least two months of reserves: (Mortgage principal & interest, tax and insurance escrow. PITI ). Reserves may include, Mutual Funds, 401K, IRA's, retirement accounts.
FAQ regarding this type of Loan!
Q. Who can apply?
A. First time buyers, Repeat buyers, Owner occupied only!
Q. How much of my income should go to mortgage payments (PITI) and debts?
A. No more than 40% of your monthly income.
Q. What if I have had a bankruptcy?
A. If it has been discharged over 24 months and you have reestablished credit and are current it will be considered.
Q. Why are they lending to people with lower credit scores and so little down payment.
A. Unlike a no documentation loan and a no down payment loan, these borrowers have to be able to repay the loan and EVERYTHING is verified!
Q. How much will my interest rate be?
A. Competitive with any other conventional 15/30 year fixed mortgage. (This is fixed - NOT adjustable, no surprises, no teasers, no gimmicks, the same payment for the term ! ) It starts low and stays low !
Q. Why is this loan becoming popular in Westchester today?
A. Because up until 2008 there was almost nothing available in the Loan limits. (they were less than half of today's amount) With these new amounts and falling prices there is a HUGE selection of inventory to choose from.
Q. What if the property I am purchasing is in need of repair or a foreclosure and there is no kitchen, working boiler and the roof leaks, Etc....
A. That's OK, you will get the extra money to fix it up based on the new appraised value after repairs. (this is the 203k mortgage program)
Q. What if I have more questions?
A. Call us, we are specialists in FHA loans or go to www.FHA.gov