Looking for FHA Loans?
We Are FHA Approved!

FHA loans are still some of the best financing options available today.

We have the ability to close loans extremely fast, including low down payment loans backed by the Federal Government.

With a low fixed interest rate, these residential mortgages are FHA insured. Rates are really LOW right now.

Although we have listed many of the specifications of FHA Loans below, we realize that these guidelines may be confusing, so please don't hesitate to contact us with any questions you may have.

Product Benefits
Some of the benefits to the borrower of an FHA loan are as follows:

-Requires a low down payment, yet allows a high loan-to-value ratio
-Loans are DU/DO eligible for underwriting
-100% gift funds are permitted
some restrictions apply-No reserve funds are required of the borrower, unless the property is 3-4 units
-The seller is allowed to pay the borrower's closing costs, up to 6% of the sales price
-Non-occupant co-borrowers are permitted
-A face-to-face interview is no longer required for financing
-Potentially eligible for the HUD Repo Incentive Program

FHA Loan Requirements
All government products with standard loan amounts have the following requirements:

1) Regardless of the AUS decision, a minimum credit score of 600 is required.
2) High-cost loans (formerly called "Jumbo" loans) will require a minimum FICO score of 620 for all borrowers on the loan.

Terms
The maximum term of an FHA loan is 360 months (30 years) and the minimum term is 180 months (15 years).

To determine the exact mortgage limit for the specific state and county of your home, please click here.

In order to obtain your FHA loan approval as quickly and easily as possible, please follow our mortgage loan checklist by clicking here.

Also, as an added feature of our website, we have included the following guidelines and tips to help ensure your home mortgage process goes as smootly as possible:

1) Pitfalls to Avoid When Trying to Obtain a Mortgage.
2) Things NOT to Do When Buying a Home.
3) Home Closing Tips and Reminders.

For those interested in purchasing multi-family homes, here is some additional information for you...

3-4 Family Units
With three and four family properties, regardless of whether or not you plan to occupy the property, the property must be self-sufficient.

This means that the maximum mortgage amount is limited, so that the ratio of the monthly mortgage payment, divided by the monthly net rental income does not exceed 100%.

In other words, the monthly mortgage payment cannot exceed the monthly net rental income.

In addition, the monthly PITI, including mortgage insurance and any homeowner association dues, is computed at the note rate (no consideration is given for buydowns).

Furthermore, the "net rental income" is calculated as the appraisers estimate of fair market rent from all units, including the unit chosen by the borrower for occupancy, less the appraisers estimate for vacancies or the vacancy factor used by the jurisdictional HOC, whichever is greater.

Borrowers must have reserves equivalent to three months of PITI payments after closing on purchase transactions, and the reserves cannot come from a gift.

Purchase Transactions
Effective with FHA case number assignments on or after January 1, 2009, the borrower is required to pay in cash or its equivalents an amount equal to not less than 3 1/2% of the appraised value or the sales price, whichever is less.

Closing costs, prepaid expenses, and discount points may not be used to meet the 3 1/2% requirement.

FHA will permit the down payment to come from a gift from acceptable sources. Gift funds may not be provided from anyone directly or indirectly involved in the sales transaction.

The loan-to-value ratio may be increased to 100% of the appraised value with the inclusion of the upfront mortgage insurance premium (UFMIP).

Seller real estate tax credits cannot be used to offset minimum investment requirements.

The tax credit, however, may mean that actual cash brought the closing is less, or may even result in cash back.

This is acceptable, but the borrower's minimum investment verification is mandatory, regardless of actual cash brought to or received at closing.

As mentioned previously, many of these guidelines may sound very confusing to the average person, so please don't hesitate to contact your mortgage professional at Cronin Financial Service, LLC with any questions you may have.

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