FHA Loans

FHA 100% Financing

DPA Terms = Down payment assistance

DPA is a second mortgage on the home

DPA amount is for either 3.5% or 5% of the lesser of the sales price or appraised value
- Pricing on the first mortgage differs based on the amount of DPA (3.5% or 5%)
- Pricing on the first mortgage differs based on forgivable or repayable options

Forgivable Option for the 2^nd Mortgage

5% DPA
2% higher rate for the first mortgage vs the repayable option
Fully forgiven after 5 years if the borrower meets the criteria of paying their payments on time
0% interest and zero payment
30 years fixed only
Purchase only
Owner occupies only and must remain the primary residence throughout the term of the 2^nd loan
Minimum credit score is 620
Double wide manufactured home minimum credit score is 660
Does not have to be a first-time homebuyer

Repayable Option For 2^nd Mortgage

10-year repayable loan

Rate on the second mortgage is currently 8.99% fully amortized over 10 years
Can do 3.5% or 5% but the rate is higher .375% to .5% higher than the 5%
The borrower will make monthly payments on the repayable DPA loan
May be applied to closing costs, down payment, prepaids, or other related program and mortgage loan fees and expenses
Must be repaid in full if the borrower:
- Sells or transfers the property
- Refinances the first mortgage; or
- No longer uses the property as their principal residence
Loan cannot be resubordinated if first mortgage is refinanced
Minimum credit score is 660

Product Highlights:

30-year fixed rate first mortgage loan
Primary residence only
1–2-unit properties
- Single family attached and detached
- Condominiums
- PUDS
- Manufactured homes (double-wide or larger)
Purchase transactions only
Borrowers must generate at least 2 credit scores
LTV
- Maximum LTV – standard FHA LTV
- Minimum LTV – 90%
Loan must have AUS approval – NO exceptions and no manual underwriting
Maximum DTI is determined by AUS
Borrower(s) DO NOT have to be first time homebuyers
Purchase price limits DO NOT apply
Income limits DO NOT apply
No homebuyer education required
Standard guidelines apply for Tax Return and Tax Transcript documentation
Cash back is allowed for the binder deposit and other 3^rd party costs

FHA Loan Limits