FHA Loan Programs

FHA MIP Just Reduced by .50% ↓

Streamline

2017 FHA MIP Matrix

The following table shows the existing and the new annual MIP rates by amortization term, base loan amount and Loan to Value (LTV) ratio. All New MIP amounts set forth in this table are effective for case numbers assigned on or after January 26, 2015.

2017 FHA County Loan Limits

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FHA Loan Programs


Whether you’re a first time homebuyer, moving to a new home, or want to refinance your existing conventional or FHA mortgage, an FHA loan program will let you purchase a home with a low down payment and flexible guidelines, refinance and renovate an existing FHA loan at the same time, even build a brand new home and close the construction & permanent portions within the same transaction. A variety of FHA loan programs are backed by HUD and are available to home owners. Choose between adjustable and fixed rate mortgages, energy efficient mortgages, graduated payment loans, and much more.

FHA MIP — Streamline Refinance
No FICO Score Needed!      No Appraisal or AVM required!      No Income Documentation!

You won’t believe how quick and painless it is to save money.  But it’s true – as evidenced by thousands of families who have benefited from lower interest rates, payments, and long-term financial security due to this program.

Because FHA loans are designed to promote home ownership with easier qualification terms, their interest rates are often slightly higher than conventional loans.  This means you may be paying more than necessary if you haven’t refinanced your FHA loan.

That’s where ‘Streamline Refinancing’ comes into play.  With an FHA loan, you may qualify for a ‘Streamline Refinance’ where your old FHA loan is converted into a new FHA loan with a lower interest rate – often at little to no cost to you, the homeowner.

  • Available for properties currently in an FHA Loan
  • No walk-through or drive-by appraisal required
  • No income documentation required
  • Save money with a lower rate and payment
  • Possibility to pay your home off faster
  • Flexible credit requirements
In order to qualify for an FHA Streamline Loan
  • The existing mortgage to be refinanced must already be FHA insured.
  • The mortgage to be refinanced should be current (not delinquent).
  • The refinance results in lowering the borrower’s monthly principal & interest payments, or, under certain circumstances, the conversion of an adjustable rate mortgage (ARM) to a fixed rate.
  • No cash may be taken out on mortgages refinanced using the streamline refinance process.
Refinance Your FHA Mortgage with the New Streamline Process and Save Hundreds of Dollars
  • Have you heard? FHA recently reduced the statutory annual Mortgage Insurance Premium (MIP) rates on all Title II forward mortgages by .50% with terms greater than 15 years.
  • This revision is effective for all FHA case numbers assigned on or after January 26, 2015 and excludes streamline refinance transactions that are refinancing existing FHA loans endorsed on or before May 31, 2009 and Section 247 mortgages (Hawaiian Homelands).
  • New FHA Streamline Refinance Program has significantly lower insurance premiums and fees, may not require an appraisal and requires limited documentation.
  • Even “underwater” homeowners who are current on their FHA mortgage payments may be able to refinance and get rates that are at near record lows.
  • Call us at 1-888-501-5969 or submit an inquiry and one of our loan tailors will be glad to assist you.
FHA 203 (b) — Fixed-Rate
The Popular 203(b) Federally Guaranteed Mortgage

Home ownership rates in America continue to increase at a steady rate due in a large part to the implementation of FHA home loans more than seventy years ago. Over the years, FHA has helped Americans gain the financial independence that comes with owning a home. By creating jobs and reasonable mortgage rates for the middle class, financing military housing, and producing housing for the low income and the elderly, FHA has helped Americans become some of the best housed people in the world with over 73 million Americans currently owning their own homes.

How it Works

By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA’s mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines.

FHA loans benefit those who would like to purchase a home but haven’t been able to put money away for the purchase, like recent college graduates, newlyweds, or people who are still trying to complete their education. It also allows individuals to qualify for a FHA loan whose credit has been marred by bankruptcy or foreclosure.

Overview

The most popular FHA home loan is the 203(b). This fixed-rate loan often works well for first time home buyers because it allows individuals to finance up to 97 percent of their home loan which helps to keep down payments and closing costs at a minimum. The 203(b) home loan is also the only loan in which 100 percent of the closing costs can be a gift from a relative, non-profit, or government agency.

Insurance on FHA mortgages are often rolled into the total monthly payment at 0.5 percent of the total loan amount which is roughly half of the price of mortgage insurance on a conventional loan. After five years or when the loan balance reaches 78 percent, the additional mortgage insurance is typically met and therefore drops off the total monthly payment.

Guidelines

It is not necessary to meet a minimum income requirement in order to qualify for a FHA loan but debt ratios specific to the state in which the home will be purchased have been put into place to prevent borrowers from getting into a home they cannot afford. This is done through a close analysis of income and monthly expenses.

FHA 203 (h) — Mortgage Program for Disaster Victims
Overview

The Section 203(h) program allows LOANLYNX to provide mortgages to victims of a major disaster who have had their homes substantially damaged (even if they were renting it) and would like to purchase a different home to occupy.

The program helps victims in Presidentially designated disaster areas recover by making it easier for them to purchase a new home to occupy if their existing home is affected by the disaster. The new mortgages may be used to finance the purchase of a one-family home that will be the principal residence of the applicant.

Eligibility

The applicant is eligible for 100% financing. Therefore, no down payment is required. Closing costs and prepaid expenses must be paid by the applicant, paid through premium pricing or by the seller, subject to a 6% limitation on seller concessions.

  • Purchase transactions ONLY
  • No minimum loan amount
  • 10, 15, 20, 25 and 30 year fixed ONLY
  • No down payment is required
  • One-unit homes only.
  • 600 minimum qualifying credit score
  • Fully Amortizing
  • Qualifying income ratios 31/43. (The existing housing payment may be ignored with acceptable documentation.)

The application must be dated within one (1) year of the President’s declaration of the disaster.

The program is available to applicants once the President declares the disaster, and remains available to applicants for one year from the date of the declaration.

Is your property listed in a presidentially-declared disaster area? The FEMA information can be found here (click here).

The Federal Emergency Management Agency (FEMA) provides listings of the:

  • Specific affected counties and cities, and
  • Corresponding disaster declaration dates

If rehabilitation of a damaged property is required, please review our 203(k) loan program features/guidelines.

FHA 203 (k) — Rehabilitation Mortgage
Instant Equity. Lasting Gratification.

The Federal Housing Administration’s FHA Standard 203(k) Rehabilitation Mortgage is an easy to use mortgage program specifically designed for those who wish to make improvements on an owner occupied home they own, or would like to buy.

Rather than having to obtain a separate loan to finance the cost of repairs (or walking away from a home they love because they don’t have the cash for home improvements), the FHA Standard 203(k) Rehabilitation Mortgage allows you to finance the rehab costs within the first mortgage loan.

LOANLYNX is now offering two (2) different 203(k) loans:
1. FHA Standard 203(k) Rehabilitation Mortgage:

is used to purchase or refinance a home that needs major rehabilitation, or when the repairs are structural in nature. The standard 203(k) loan is also used when the total renovation costs exceed the $35,000 limit of the 203(k) streamline loan. Also, the borrowers will receive an added layer of protection from the use of a 203(k) consultant. 203(k) Consultants are experts in their field and are used to safeguard against under or over estimating the cost of the repairs.

The FHA lists several repair types which require the standard 203k:
  • Relocation of loan-bearing walls
  • Adding new rooms to a home
  • Landscaping of a property
  • Repairing structural damage to a home
  • Total repairs exceeding $35,000
2. FHA Limited/Streamlined 203(k) Rehabilitation Mortgage:

is an all-in-one loan used for homes that need minor repairs. It allows borrowers to finance the purchase of an existing home or refinance a home they currently occupy and make improvements or upgrades of up to $35,000. There are no minimum repair costs with the FHA Limited 203(k) Rehabilitation Mortgage.

A partial list of projects well-suited for the Limited/Streamlined 203k program include:
  • HVAC repair or replacement
  • Roof repair or replacement
  • Home accessibility improvements for disabled persons
  • Minor remodeling, which does not require structural repair
  • Basement finishing, which does not require structural repair
  • Exterior patio or porch addition, repair or replacement

*Luxury items are not permitted to be included in the financing.

Eligible properties are:
  • Attached/Detached 1-2 unit primary residences — completed for at least one year
  • Manufactured homes
  • FHA approved condominiums
Ineligible properties are:
  • Demolished homes
  • Razed homes
  • A structured relocated to another location
  • Mixed-use properties
  • Co-ops
  • Investment properties
  • Mobile homes
  • 3-4 unit properties
FHA 243 (c) — Condominium Loan
FHA Loans for Condominium Units

FHA Condominium Loans are specifically geared toward those who purchase housing units in a condominium building. Condominium ownership, in which separate owners of individual units jointly own the development’s common areas and facilities, is for some a very popular alternative to home ownership. Insurance for this type of housing is provided through FHA Section 234(c). This FHA insurance is very important for low and moderate-income renters who wish to avoid the risk of being displaced when their apartments are converted into condominiums.

How it Works

Of the many types of mortgage insurance offered by FHA.com, FHA Condominium Loans are designed to encourage lenders to extend affordable mortgage credit to those who have non-conventional forms of ownership. The Section 234(c) program insures a loan for 30 years to purchase a unit in a condominium building. The building must contain at least four dwelling units and can be comprised of detached and semidetached units, row houses, walkups, or an elevator structure.

Through this and other types of mortgage insurance programs, FHA.com helps low and moderate-income families purchase homes with FHA loans by keeping the initial costs down. By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA loan insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines.

Available Assistance

Many of the features of Section 234(c) mortgage insurance are similar to those of FHA Section 203(b) for one to four-family homes. Down payment requirements are low because these FHA loans allow borrowers to finance up to 97 percent of their home loan and some of the closing costs can also be financed, further reducing up front costs. On a Section 234(c) loan, FHA sets limits on the size of the loan which vary with location and the number of units being purchased.

Restrictions

If the apartment is in a building that was converted from rental housing, insurance may not be provided under Section 234(c) unless:

  • the conversion occurred more than one year prior to the application for insurance.
  • the potential buyer or co-buyer was a tenant of that rental housing.
  • the conversion of the property is sponsored by a tenant’s organization that represents a majority of the households in the project.
  • Eighty percent of FHA mortgages in the project must be made to owner-occupants.
Eligibility

Any creditworthy persons who meet FHA underwriting criteria and are intending to occupy the condominium unit as their principal residence are eligible to apply.

FHA 245 — Graduated Payment Mortgage
Keeping Initial Loan Costs Down

Graduated Payment Mortgages are FHA loans for home buyers who currently have low to moderate incomes but expect them to increase substantially over the next 5 to 10 years. Through this FHA loan program, also referred to as Section 245, those who have limited incomes are able to purchase a home and make mortgage payments that will grow along with their earning potential.

Those who are considering using a Graduated Payment Mortgage to purchase a home should keep in mind that while their monthly payments to principal and interest will start small, they will increase substantially each year for up to ten years, depending upon the payment plan selected.

How it Works

Through this and other types of FHA loan programs, the lender helps low and moderate-income families purchase homes by keeping the initial costs down. By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines.

It also protects lenders against loan default on mortgages for properties that include manufactured homes, single-family and multifamily properties, and some health-related facilities. Through the Graduated Payment Mortgage program first time homebuyers and others with limited incomes can tailor their monthly mortgage payments to fit their expanding incomes therefore allowing them to purchase a home sooner than they would be able to through conventional financing programs.

Available Assistance

Of the five FHA Graduated Payment Mortgage plans, three of them allow mortgage payments to increase at a rate of 2.5 percent, 5 percent, or 7.5 percent in the first 5 years of the loan. Through the other two plans, payments increase at a rate of 2 to 3 percent annually over 10 years. Beginning in the sixth year of the 5 year plans and in the eleventh year of the 10 year plans, payments stay the same for the remaining years of the mortgage. FHA mortgages that start with a greater rate of increase over a longer period will have lower payments in the early years.

It is important that while considering this method of financing, home buyers take the time to critically assess their potential for increased income to offset the rising mortgage payments. They also need to recognize that over the life of the mortgage, they will pay more in interest than they would have had they chosen a mortgage with payments that remained the same over the life of the loan.

Eligibility

Graduated Payment Mortgages are available to anyone who anticipates their earnings to increase substantially and intends to use the mortgaged property as their primary residence.

Application

Any person who is able to meet the credit requirements, cash investment, and mortgage payment is eligible to apply. However, this FHA loan program is limited to owner occupants.

FHA 245 (a) — Growing Equity Mortgages
Loans for Borrowers with Rising Incomes

FHA Growing Equity Mortgages are home loans that are tailored for first time home buyers or young families. These likely homebuyers are often not in a position that would warrant them being able meet the many upfront and monthly costs that are involved.

FHA’s Section 245(a) enables those who currently have a limited income but expect their monthly earnings to increase, to purchase a home with the help of a Growing Equity Mortgage in which payments start small and increase gradually over time. As the mortgage payments grow the additional payment is applied toward the principal on the loan thus reducing the mortgage term. Growing Equity Mortgages also allow homeowners who are interested in further reducing the term of their mortgage to apply scheduled increases in their monthly payments to the outstanding principal balance.

How it Works

Through this and other types of mortgage insurance programs, the lender helps low and moderate-income families purchase homes by keeping the initial costs down. By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA’s mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines. It also protects lenders against loan default on mortgages for properties that include manufactured homes, single-family and multifamily properties, and some health-related facilities.

Through the Growing Equity Mortgage program first-time home buyers and others with limited incomes can start out with a low monthly mortgage payment that will increase gradually over time therefore allowing them to purchase a home sooner than they would be able to through conventional financing programs.

Available Assistance

Growing Equity Mortgages are eligible for insurance under Section 203(b) for one to four family homes; Section 203(k) for home purchase, refinancing, or rehabilitation; Section 203(n) for shares in cooperative housing; and Section 234(c) for units in condominiums. Growing Equity Mortgages must meet the requirements of the section under which they are insured but certain exceptions are available.

Each of the five Growing Equity Mortgage plans provides for monthly payments to be increased by a fixed percentage during each year of the loan. The initial year’s payments to principal and interest are based on a 30 year level payment schedule. Thereafter the amount of the monthly payments for the next 12 months will increase each year by between 1 and 5 percent depending on the plan selected. The actual term of the mortgage will not exceed 22 years and may be less depending on the specific Growing Equity Mortgage plan and interest rate selected.

Eligibility

Most lenders who use this mortgage insurance product make their requests through a provision known as “direct endorsement,” which authorizes them to consider applications without submitting paperwork to HUD.

Application

Growing Equity Mortgages are available to anyone who anticipates their earnings to increase appreciably and intends to use the mortgaged property as their primary residence.

FHA 251 (ARM) — Adjustable Rate Mortgage
ARMs Help Homeowners When Rates are High

The FHA ARM is a HUD mortgage specifically designed for low and moderate-income families who are trying to make the transition into home ownership. This program, used in conjunction with other FHA programs, can help keep initial interest rates and mortgage payments to a minimum. Also referred to as Section 251, FHA’s Adjustable Rate Mortgage Program insures home purchases or loan refinances on loans with interest rates that may increase or decrease over time.

How it Works

Through this and other types of mortgage insurance programs, the lender helps low and moderate-income families purchase homes by keeping the initial costs down. By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA’s mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines. It also protects lenders against loan default on mortgages for properties that include manufactured homes, single-family and multifamily properties, and some health-related facilities.

Available Assistance

FHA’s most popular home loan is the Fixed-Rate 203(b) loan but there are also many other programs available based on the 203(b) that have additional features. One of these is the Section 251 Adjustable Rate Mortgage program which provides insurance for Adjustable Rate Mortgages. When interest rates are high, Adjustable Rate Mortgages keep the initial interest rate on a mortgage low which allows borrowers to qualify for the financing they need.

The beauty of the Section 251 program is that it goes hand-in-hand with other widely used FHA single family products such as:

  • Mortgage Insurance for One to Four Family Homes (Section 203(b))
  • Single-Family Rehabilitation Mortgage Insurance (Section 203(k))
  • Single-Family Mortgage Insurance for Condominium Units (Section 234(c))

While the Section 251 program helps to keep mortgage interest rates and payments low they may change over the life of the loan. The maximum amount of fluctuation in your interest rate in any given year cannot exceed 1 percentage point. And over the life of your loan, the interest rate cannot increase more than 5 percent from your initial rate.

The terms of the Adjustable Rate Mortgage will be disclosed when you apply for your mortgage loan. And should your interest rate increase, you will be informed at least 25 days before any changes are made to your total monthly payment. As an additional benefit of the Section 251 program, if you ever consider refinancing your Adjustable Rate Mortgage you can easily streamline refinance to a Fixed Rate Mortgage at any time.

Aside from the adjustable rate aspect of the Section 251 loan it is very similar to a FHA insured single family loan. Because FHA insurance allows borrowers to finance up to 97 percent of the value of their home through their mortgage, down payments can be as little as 3 percent of the total value of the home.

FHA allows for many of the closing costs involved in purchasing a home to be financed and the same rules apply for an Adjustable Rate Mortgage loan. The Section 251 program also helps to reduce the initial expenses that are involved in purchasing a home by allowing you to finance many of these charges or roll them into the cost of the mortgage.

The costs you, as the potential homeowner, are responsible for are the down payment, appraisal and title search, any up front charges associated with your mortgage insurance premium? which may also be financed, and the subsequent monthly premiums that are added into your mortgage payment.

To better serve you, FHA has set rules in place that limit the amount lenders can charge in making a loan. We ensure that the loan origination fees charged by the lender do not exceed one percent of the amount of your mortgage minus the mortgage insurance premium, if it is being financed. As our goal is to best serve low and moderate-income people, we also set limits on the total dollar value of the mortgage loan. View the current established FHA loan limits. Please keep in mind that these figures vary over time and by place, depending on the cost of living and other factors. Higher mortgage limits also exist for two to four family properties.

Application

Any person who is able to meet the cash investment, credit requirements, and mortgage payment is eligible to apply however the program is limited to owner occupants.

Eligibility

All persons intending to occupy the property as their principal residence are eligible to apply. All FHA-approved lenders are qualified to make Adjustable Rate Mortgages and creditworthy applicants may qualify for such loans.

FHA (EEM) — Energy Efficient Mortgage
Incorporate Improvements Into Your Loan

These loans are available to assist home owners and home buyers with energy upgrades that are financed into their mortgage loan. The FHA EEM Program will add value to your home while reducing utility expenses without effecting qualification or having to provide an additional down payment. This program is available for FHA Purchase and for FHA Refinance loans.

The Energy Efficient Mortgage Loan program helps current or potential homeowners significantly lower their monthly utility bills by enabling them to incorporate the cost of adding energy efficient improvements into their new home or existing housing. This FHA program eliminates the need for homeowners who are interested in making their home more energy efficient to take out an additional mortgage loan to cover the cost of the improvements they intend to make to their property. The program is available as part of a FHA insured home purchase or by refinancing your current mortgage loan.

It is our government’s goal to make energy efficiency and conservation a way of life. The FHA Energy Efficient Mortgage Loan program contributes to these efforts by providing better housing and creating a way for homeowners to make valuable improvements to their homes at a relatively low cost. The Joint Center for Housing Studies has reported that by considering the amount of monthly savings on utility bills when determining the amount of the mortgage, over 250 thousand more homeowners could feasibly qualify for a home loan.

How it Works

Through this and other types of mortgage insurance programs, the lender helps low and moderate-income families purchase homes by keeping the initial costs down. By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines. It also protects lenders against loan default on mortgages for properties that include manufactured homes, single-family and multifamily properties, and some health-related facilities.

Available Assistance

The Energy Efficient Mortgage Loan program is one of many FHA programs that insures mortgage loans. Borrowers who qualify for FHA’s popular Section 203(b) fixed-rate mortgage loan may finance up to 97 percent of their home loan. They are also able to fold their closing costs and the up-front mortgage insurance premium into the total cost of the loan. Energy Efficient Mortgages can also be used with FHA Section 203(k) rehabilitation program; in this case the Energy Efficient Mortgage generally follows the Section 203(k) rehabilitation program’s financing guidelines.

Eligibility

The Energy Efficient Mortgage Loan program is available to anyone who meets the income requirements for FHA’s Section 203(b) and is able to make the monthly mortgage payments. The cost involved in adding energy efficient features to the home and an estimate of the energy savings must be determined by a home energy rating system or a qualified energy consultant. Up to $200 of the cost of the energy inspection report may be included in the mortgage. Cooperative units are not eligible. Individual condominium units may be insured if they are not in projects that have been approved by FHA or the Department of Veterans Affairs, or they meet certain Fannie Mae guidelines.

Eligible Energy Efficient Activities

Energy Efficient Mortgages can be used to make energy-efficient improvements in one- or two-unit existing and new homes. The improvements can be included in a borrower’s mortgage only if their total cost is less than the total dollar value of the energy that will be saved during their useful life. The cost of the improvements that may be eligible for financing as part of the mortgage is either 5 percent of the property’s value (not to exceed $8,000) or $4,000, whichever is greater. View the current FHA loan limits.

FHA Secure Refinance — Second Chance Mortgage
Borrowers Benefit By Avoiding Foreclosure

Many homeowners with adjustable rate mortgages find themselves in financial trouble because of current interest rate increases. Foreclosure is a bigger threat than ever, but fortunately the FHA has stepped in to help with FHASecure Refinancing. Starting July 14, an expanded FHASecure refinancing plan allows homeowners who have missed up to three mortgage payments in the last 12 months under certain circumstances to avoid foreclosure with FHASecure.

You don’t need an existing FHA home loan to qualify for an FHASecure refinance loan – the program is designed to specifically to help those without FHA loans to get lower payments, prevent default and foreclosure, and protect their investment.

  • Homeowners with current or delinquent non-FHA adjustable rate mortgages are eligible.
  • You are not automatically disqualified based on delinquency on your current loan.
  • You must have a dependable income and be able to make your mortgage payment.
  • If you are in default, you must show delinquency or default is the result of increased interest rates and the resulting higher mortgage payments.
  • If you are current on your mortgage payments, any type of conventional loan is eligible for FHASecure refinancing.
In addition to these specifications;
  • “Those who are current on mortgage payments can refinance non-FHA fixed rate or adjustable rate mortgages. Those who are behind on their mortgage payments may only refinance adjustable rate mortgages.
  • “Borrowers may be required to verify their mortgage payment history through the mortgage servicer or with cancelled mortgage payment checks.
  • “Cash out refinancing” is not eligible under FHASecure.

FHASecure refinancing is available for single-family or multi-family homes and manufactured homes. A new FHA premium pricing plan goes into effect on the same date the expanded FHASecure refinancing program begins, July 14 2008. Borrowers should know this “second chance” refinancing does not indicate relaxed requirements for credit. Borrowers applying for FHASecure are subject to the same requirements as any other applicant for an FHA loan. Delinquency issues for mortgage payments aside, loan officers still require proof you are a good credit risk. Borrowers should;

  • Have steady income from a dependable source.
  • Show a reliable payment history on other debts.
  • Have a debt-to-income ratio below 41%.
  • Have a credit score appropriate for any home loan.

If you need further explanation of the terms & conditions of FHASecure, be sure to ask your loan tailor for clarification before you sign.

FHA HAWK — Homeowner's Armed With Knowledge

 

FHA (BTW) — Back To Work Program
FHA Back To Work Program Waives Foreclosure, Bankruptcy, And Short Sale Waiting Periods

The FHA has waived its 3-year foreclosure waiting period.

Effective for FHA Case Numbers assigned on, or after, August 15, 2013, borrowers with a recent history of bankruptcy, foreclosure, judgment, short sale, loan modification or deed-in-lieu can apply for an FHA loan and get approved without hassle.

The FHA “Back to Work” Program is Official

On August 15, 2013, though, the Federal Housing Administration moved to relax its guidelines for borrowers who “experienced periods of financial difficulty due to extenuating circumstances”.

Dubbed the “Back To Work – Extenuating Circumstances Program”, the FHA removed the familiar waiting periods that typically followed a derogatory credit event.

If you’ve experienced any of the following financial difficulties, you may be program-eligible :

  • Pre-foreclosure sales
  • Short sales
  • Deed-in-lieu
  • Foreclosure
  • Chapter 7 bankruptcy
  • Chapter 13 bankruptcy
  • Loan modification
  • Forbearance agreements

The FHA realizes that, sometimes, credit events may be beyond your control, and that credit histories don’t always reflect a person’s true ability or willingness to pay on a mortgage.

FHA (GNND) — Good Neighbor Next Door Program
Help Strengthen Your Local Community

The FHA Good Neighbor Next Door program (GNND) is a special FHA program for teachers, law enforcement officers, firefighters and emergency medical technicians.

Via the Good Neighbor Next Door program, eligible buyers can purchase HUD homes at a 50% discount from the list price, and with a downpayment of just $100. You must only occupy the home as your principal residence for three years. There are no other “catches”.

This program is designed to help make the American community stronger and help build safer communities and promote homeownership. The goal of this program is to encourage persons whose daily professional responsibilities are in the community, to live and stay in the community. HUD has developed this program to help these professionals to purchase homes located in revitalization areas at significant discount.

The Good Neighbor Next Door (GNND) program helps make this goal a reality by encouraging law enforcement officers, pre-K through 12th grade teachers and firefighters/emergency medical technicians to become homeowners in revitalization areas.

If your client meets the eligibility criteria, this program may help them purchase a home in a U.S. Department of Housing and Urban Development (HUD) revitalization area by offering qualified purchasers a 50% discount off the list price of homes available from HUD’s inventory. They must agree to live in the home for three years and it must be their sole residence.

All participants must be employed full time by a federal, state, county, municipal government, Indian tribal government, division of local government, or public/private school. Current homeowners cannot participate. (It must be for a “New” Home Purchase)

Eligible participants include:
  • Law Enforcement Officers
  • Pre-kindergarten – 12th grade teachers
  • Firefighters
  • Emergency Medical Technicians (EMTs)

HUD requires that they sign a second mortgage and note for the discount amount. No interest or payments are required on this “silent second” provided that they fulfill the three-year occupancy requirement.

For your convenience, we’ve provided the link to the list of properties available. The number of properties available is limited and the list of available properties changes weekly so please check often. (click here)

Available for:

Purchase

Terms:
  • 10, 15, 20, 25, 30 year fully amortizing fixed
  • 5/1 Hybrid ARM
Residence Types:
  • Primary residence only
  • 1 unit single family
  • Townhomes
  • FHA Approved condos and PUDs
  • Manufactured

Note: If the property is listed on HUD’s Home Store link it is considered eligible.

Ineligible Property:
  • Investment properties
  • Multi-Unit Housing
  • Second homes
  • Non-Approved Condos
  • New Construction (never been occupied)
Loan Amount:

FHA’s Max County limit up to the High Balance amount

Down Payment:

$100 minimum borrower contribution

Minimum Qualifying Credit Score:

600 +

Eligible Transactions:
  • 203(b)
  • 203(b) Repair Escrow
  • 203(k) Rehabilitation Loan
  • 203(k) Streamlined Rehabilitation Loan
FHA (HHL) — Hawaiian Homeland Loans
Insured Mortgages on Hawaiian Home Lands!

The State of Hawaii, through the Department of Hawaiian Home Lands (DHHL), offers a mortgage program specifically designed for customers who are certified native Hawaiian.

FHA insures loans made to native Hawaiians to purchase dwellings located on Hawaiian home lands. Any Native Hawaiian wishing to live on Hawaiian home land and intending to use the mortgaged property as their primary residence are eligible to apply for mortgage insurance. All FHA 203(b) guidelines must be met.

Available for:
  • Purchase
  • Refinance – Rate and Term / Streamline
  • Refinance – Cash Out
Terms:

15, 30 year fixed

Eligible Borrowers:

Limited to owner occupants who are certified as native Hawaiians. No non-occupying co-borrowers permitted

Residence Types:
  • 1-2 Unit Primary Residence
  • FHA Approved Condos
  • Manufactured Homes
  • PUDs
Loan Amount:

Up to $938,250 1 unit, , $1,201,150 2 unit

LTV:
  • 97.75% for Purchase
  • 97.5% for Rate / Term refinance
  • 75% for Cash Out refinance
Minimum Qualifying Credit Score:

620 +

*Note: CDE loans have a 580 minimum qualifying credit score.

MMI:

One-time up front MIP

FHA (OTC) — One-Time Close
A TRUE One-Time Close Construction/Perm Loan

LOANLYNX is now offering Construction to Permanent loans for for new manufactured, stick built properties and modular homes. Our One-Time Close program provides construction financing, lot purchase and Permanent loan, all wrapped up in one loan. Why worry about re-qualifying, re-appraisals or incurring additional costs?

Our innovative lending partners provide the interim financing and administration for true one-time close staged funded construction-to-permanent loans. Designed for manufactured, stick built and modular housing, this program allows us to offer this unique loan product to clients in that market segment.

LOANLYNX pre-underwrites and secures an approval for the permanent portion of the loan before the construction begins. The construction portion of the loan is also underwritten and approved. When all conditions for closing are cleared, other than the final construction related conditions, the closing will be coordinated. Once closed, construction can begin.

Because the permanent loan is closed before construction begins, there is no “re-qualifying” the borrower. This is a true one-time close; therefore, the borrowers will not need to return to the settlement agent for a second closing once construction is complete.

FHA $100 Down Program
Finance A Home With Only $100 Down!

HUD (the US Department of Housing and Urban Development) has announced a limited-time sales incentive program which allows qualified buyers to buy HUD homes with a down payment of only $100, as long as: The buyer will live in the property for at least one year (investors do not qualify for this incentive) The buyer offers the full asking price for the home, and The buyer uses an FHA loan for the purchase.  The $100 Down Program from HUD is designed to attract buyers to the market to move the overstock inventory.

Some Additional Eligibility Requirements:
  • The home purchased must be a HUD owned home.
  • Buyers must use a HUD-registered real estate broker or agent in order to get the incentive.
  • The property must be purchased “as-is.”
  • The subject property must be located in an eligible area only.
  • HUD determines which areas are eligible.
  • Contract of Sale must acknowledge the $100 down program.
  • LTV is based on the borrower contributing $100 of sales price (appraised value must support sales price or higher).
  • If the appraised value is less than the sales price, the borrower will need to add the difference of the appraised value and the sales price to the original $100.00 to meet the required down payment.

For a list of HUD owned homes visit www.hudhomestore.com. You will need to contact a local HUD Asset Management Contractor to determine if a property on the list is eligible for the program. The Asset Manager contact information will appear once you enter in a property address.

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FHA Loan Programs

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