FHA Loans: The First-Time Home Buyers Loan of Choice!

FHA (Federal Housing Authority) Loans.  Remember the New Temporary Mortgage Limits:

The number of FHA borrowers has grown substantially in the last year.  FHA only requires a 3% down payment.  The down payment can be a gift from friends or family or can be seller credits through several down-payment-assistance programs for first-time home buyers like the Nehemiah Down Payment Assistance Program.  FHA also loan has eligibility limits.  

OFHEO has announced the new conforming and FHA loan limits.  The maximum temporary loan limit is calculated as 1.25 times the median house price for the highest priced county in the property's metropolitan or micropolitan area.  FHA has indicated that there will be no premium charged for the higher-than-normal FHA loan limits, but Freddie Mac has already declared that the new conforming loans will be segregated into different pools based on the increased risk of early payoffs. Please follow this link to learn more about FHA loans.   Below are several highlights for FHA loans: 

FHA Mortgage Highlights:

• 97.15 % LTV for properties w/sales price greater than $125,000 in CA
• DAP allowed and gift funds acceptable
• Up to 95% Cash out Refinance
• Max Loan Limit - see FHA Income Reference Guide.
• Only allowed one FHA-insured Mortgage at a time and this must be for a primary resisidence.
• Maximum Seller Contributions up to 6%
• Debt-to-Income (DTI) Ratios 31/43; this is flexible with compensating factors
• Mortgage Insurance (MI) @ 0.50% of Base Loan and Upfront MIP @ 1.50%
• Not required to payoff collections (see FHA Reference Guide)

Eligible Products:

• 1 Yr ARM
• 3 Yr, 5 Yr, 7 Yr and 10 Yr Hybrid ARM, Principle and Interest
• 15 and 30 Year Fixed Term

For specific information on the FHA Program, please phone or Email me. 

Also Read:   Mortgage Programs for First Time Home Buyers
Also Read:   The ACORN Program - Not Just for Fisrt-Time Home Buyers
Also Read:   CalHFA: A California First TIME Home Buyer's Prgram With Up to 100% Financing
Also Read:   FHA and the Nehemiah Down Payment Assistance Program!

You can find AJ Nisen on Active Rain at Contra Costa California Mortgages or at Bank of America Mortgage .  Call AJ to talk about your Mortgage, Mortgage Rates, Free Credit Report or visit AJ's website to use his mortgage calculator. 

Alan 'AJ' Nisen
Mortgage Loan Officer
Email: aj.nisen@bankofamerica.com
http://mortgage.bankofamerica.com/ajnisen 
http://www.activerain.com/ajn