The FHA 203(b) loan insurance program is for people who want a single-family FHA insured mortgage loan.  FHA Loans offer a less stringent qualification process than the Conventional Loan and are typically used for first time home buyers or those buyers who need a little extra help.  Second homes and rental/investment properties do not qualify for this type of loan.  Condo units that are FHA approved do qualify.  Contact Multiline Mortgage Services and speak to your loan professional.

Typical highlights

◊  FHA loans are for single family primary residences only.  FHA approved condos are allowed.

◊  Available in fixed rates with loan terms at 15 or 30 years.

◊  Down payments are usually 3.5% which the FHA allows to come from an employer, family member or charitable organization in the form of a gift.  Higher down payment amounts are allowed.

◊  An FHA loan is often easier to qualify for because of the more lenient credit requirements.  The FHA is not a lender.  They guarantee the loan thus protecting the lender from situations where the borrower may go into default or foreclosure.

◊  Mortgage insurance is required in two ways.  The upfront Mortgage Insurance Premium (MIP) is the amount of money to be loaned multiplied by 1.75%.  This can be paid with closing costs or financed into your loan.  Then there is the monthly MIP which is calculated by taking your monthly mortgage payment multiplied by .85%.

Asset Documentation

​•  Legible copy of your driver’s license and social security card or passport.

•  All pages of your bank statements for the past two months.

•  Current check stubs and your W-2 forms (past two years).

•  Personal tax returns (past two years), current income statement and business balance sheet for self-  employed individuals.

•  Social security, retirement, and/or pension award letters and 2 years’ 1099s.

•  In addition, you will need to pay for a credit report and appraisal of the property.

Bankruptcy and Foreclosure

​•  Chapter 7 Bankruptcy – Two (2) years after the discharge date.

•  Chapter 13 Bankruptcy – One (1) year after the discharge date with permission from the bankruptcy court to enter into a new mortgage.

•  Short Sale/Deed in Lieu – Three (3) years after the sale date of your foreclosure.

•  Foreclosure – Three (3) years after the sale/deed transfer date.

Call Multiline Mortgage Services for loan pre-qualification in 15 minutes or less.

All consultations are FREE!