The FHA 203(b) Loan programs offer a less stringent qualification process than the Conventional Loan, have better interest rates 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.
◊ FHA loans are for single family primary residences only. FHA approved condos are allowed.
◊ FHA loan limit for 2021 is $356,362 for 1 unit properties.
◊ 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%.
• 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).
• 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!