FHA Mortgage Loan

The FHA Home Mortgage Loan program was created to help boost the housing market after it had suffered through an abundance of foreclosures and defaults in the early 1930’s.

An FHA Home Loan insures the lender against loss in the event of a foreclosure, but if a borrower defaults, FHA will not protect him or her from foreclosure. Since the inception of FHA and HUD, they have been able to help over 4.8 million families achieve their dream of home ownership in the United States.

Requirements for an FHA Mortgage Loan

  • Down Payment: minimum of 3.5%
  • Up to 6% sellers assist of the contract price (If the seller agrees)
  • Gift from family (Allowed)
  • Term of loan: 30 year fixed rate, 20 year fixed rate, 15 year fixed rate
  • Monthly mortgage insurance
  • Up front mortgage insurance (Currently 1.75% of the loan amount)
  • You will have a base loan amount and a combined loan amount (eg. see below)
    • Purchase price: $200,000
    • Base loan amount: 193,000
    • Combined loan amount: 196,377
    • Is property a condo? If so, we will check to see if it is on the FHA approved condo list
  • FHA loans have county limits (Varies per county)

FHA Loan Limits: https://entp.hud.gov/idapp/html/hicostlook.cfm
FHA Approved Condo List: https://entp.hud.gov/idapp/html/condlook.cfm

Home Buying Process for FHA Loans

When it comes to buying a home, the process can be very frustrating for those who have never done this before. If you have questions about anything at any time, please do not hesitate to reach out and contact me.

Step 1

To start the process, you will need to provide me with the following information:

  • Name
  • Current address
    • Rent or own?
    • How many years you have lived at the property?
    • Will need at least two years of history
  • If you own your property
    • Purchase price
    • Year purchased
    • How much you paid
    • How much you owe
  • Contact phone number
  • Date of birth
  • Social security number
  • Name of the company you work for
  • Title
  • Years of experience (Need at least two years of history)
  • How you are paid? (Hourly, salary, bonus, commission)
  • Financial Reserves
    • Checking Account
    • Savings Account
    • Money Market Account
    • Mutual Funds
    • IRA
    • 401k
  • Do you own any other property? If so, please provide the following:
    • Primary residence
    • Second home
    • Investment property

Step 2

Next, I would need your permission to pull and review your credit report. We will go over your credit report in detail before proceeding to the next step.

Also, during this call I will explore the different scenarios regarding down payment, monthly payments, and the term of the loan. There are also closing costs, prepaid items, and other inspections that we will discuss as well. I will make sure to explain everything thoroughly so you can understand the full extent of the process and are comfortable moving forward.

Step 3

Once I complete filling out the necessary paperwork, I will send a pre-qualification letter to you and/or your realtor to make an offer on the home you are looking to purchase.

Required Documents for Purchasing a Home

Please make copies of the following items:

  • W-2s for the last two years
  • One month most recent pay stubs
  • Two months most recent bank statements (All pages included)
  • Color copy of driver’s license
  • Copy of social security card, or valid passport
  • Most recent statements for other reserves

Please make copies of the following if you own any property:

  • Current mortgage statement
  • Current tax bill
  • Current homeowner’s policy (Declarations pages)
  • Flood insurance policy (If applicable)
  • Self-Employed and/or Ownership of Investment Properties: Full Tax Returns for 2 years

Inspections

  • Home Inspection
  • Termite Certification
  • Survey (If applicable)
  • Appraisal

Contact Me Now & Lets Get Started On Making Your Dream A Reality

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