FHA Mortgage Loan

The FHA 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 1930s.

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 homeownership 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 Mortgage 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

Contact Me Now