New 2019 FHA Mortgage Guide

New 2019 FHA Loan Limits. FHA mortgage requirements and tips on qualifying. In the video we cover regular FHA Purchase Loans, FHA 203K, FHA Streamline and Cash Out refinance.

Welcome fha loans remain one of the most popular mortgage programs available today for first-time homebuyers and move up buyers alike today we’re going to discuss the latest requirements for fha loans homebuyers that have questions be sure to reach out to us by visiting fha mortgage source com or simply call 1-877-675-3354 throughout the country there are select

High-cost locations that permit higher loan amounts and we’re going to look at that in more detail in some slides coming up the minimum downpayment is currently 3.5% for the down payment fha comes in a standard 30-year fixed and 15-year fixed terms it is of course a government-backed mortgage program there is no early payoff penalties with the program the program

With most lenders and banks required generally a 580 to a 620 credit score for the maximum financing of 96.5% three and a half percent down payment fico scores lower down to in some cases to a 500 can be approved for homebuyers that have a larger down payment of 10% down payment the credit score requirement says they do change depending on the down payment that

The home buyer has the homebuyers closing costs can be paid by the seller up to six percent which is generally more than enough to cover the homebuyers closing cost and prepaid escrows for taxes and homeowners insurance fha mortgage insurance premium fha does require like really most government loans out there va loans usda loans fha loans they have a one time

Premium that is rolled into the balance of the loan fha is for any single-family home town home or approved fha condo as long as it meets the basic fha requirements i a couple of notes here is for the down payment gift funds are permitted for the down payment the borrower home buyer can receive a gift from really a variety of eligible sources like the employer are

Approved downpayment assistance programs there’s many sources but it three and a half percent the minimum downpayment and the expenses the the money needed for closing costs these things can come from eligible sources fha also permits non occupying co borrowers so an example of that would be let’s say a young first-time home buyer wants to purchase their first home

Maybe they need additional income to qualify they can have a parent co-sign with them even though they’re not going to actually occupy the home with them so fha has that advantage there were non occupying a co borrower can cosign and they don’t have to occupy the home the program requires very low cash reserves compared to most conventional loan programs fha is a

Nice option especially for first-time homebuyers that have little money saved this is a chart of the latest fha mortgage insurance cost remember fha does have a one-time fee that is rolled into the loan and then fha has a monthly premium that is added to the borrower’s mortgage payment and that monthly premium is based on really the loan amount and the down payment

But in most cases 80 bits you know for borrowers in most cases are financing over ninety five percent and this chart you can see more details on the chart the mortgage insurance premium all this is detailed with examples on our website at fha mortgage source com the fha loan limits for low cost areas which is most of the u.s. the limit is set to sixty five percent

Of the national conforming loan limit that current conforming loan limit is four hundred and eighty four thousand three hundred and fifty thousand dollars for a one unit property a standard one unit home so fha is going to be sixty five percent of that basically for a one unit home again three hundred and fourteen thousand eight hundred and twenty seven dollars

And then it does increase if it’s a two or three or four unit maybe a duplex and things like that it does go up now again this is for low cost areas most of the locations throughout the country now we’ll look at the high-cost locations for the high-cost locations again these are set to one hundred and fifty percent of the national conforming loan cat and again you

Can see how the the loan limits the caps increase and again this is only for high-cost areas thing of a lot of areas through california maybe south florida the northeast and also parts of colorado as well dc around there so these are you know typical high-cost areas that do permit greater loan limits the fha 203k loan is a special renovation or rehab mortgage that

Provides financing for both the purchase of the home and then also any renovation or repair of the home let’s say the home buyer needs that the home may require a new air conditioning or a new roof or any other thing really to make the home livable there is a cap on the expense for that but buyers can finance again not only the purchase of the property but also roll

In the cost to do these repairs and it’s all based on the appraised value after improve value of the home so this is a good for any home that needs some extra tlc really to make it livable okay and it’s a three point five percent down payment just like the regular fha purchase loan and it’s only for primary residence again fha is like all government loan programs

Reserved for primary owner occupied homes and not investor properties or vacation homes or things like that fha also has a few refinance options there’s the streamline refinance for homebuyers that currently have an fha loan and just simply want to see about reducing their interest rate on their loan this is just what the name applies it’s very streamlined there’s

No new appraisal homeowners can be underwater or upside down on the home value meaning they owe more on the loan than what the home’s worth that is okay streamlined documentation and paperwork very easy a very simple process again this is just for homeowners that simply want to see about reducing their current interest rate on the ones they already have there’s

Also a cash out refinance option for homeowners that may have significant equity in their home and they want to cash out some equity to maybe pay consolidate debt or do some renovations or additions repairs or whatever to their home that’s great for homebuyers that do have equity in their home that is limited to eighty-five percent loan to value this program it

Will require a new appraisal and that will be verified in the process and again for homebuyers that want to consolidate high interest debt or remodel and things like that this is a great program buyers that want to learn more about any of the fha loan programs again please call us at one eight hundred seven four three seven five five six seven days a week or visit

Fha mortgage thank you

Transcribed from video
New 2019 FHA Mortgage Guide By FHA Mortgage Source