FHA Updates- Good news for buyers

FHA updates supplied by Chris Guilmett of Laconia Savings Bank

3.5% down payment

• Can be all gift money. Sources: Relative, Applicant's employer, Close Friend, Charitable organizationg, government Agency
• Musts how transfer of funds to borrower either prior to closing or at closing.
• 1 - 4 Family Owner Occupied
• Seller contributions: Up to 6% of sales price
• Can only go towards prepaids & closing costs, not down payment or concessions
• Qualifying ratios: 31/43
• More liberal with past credit problems, beyond control, not neglect
• No minimum credit score--Judgments must be paid
• No income limits
• Appraisals
• Safety soundness issues Testing requirements (water/termite) only required if appraiser comments that there is a current problem.
• On single family homes (only) a non-occupying co-borrower can be added to a borrower with weak income.

Check out hud.gov for more info.