Loan Reqirements FHA

 

   FHA – no income restrictions,   Loan size restrictions by county (Citrus & Marion $271,050).  FHA requires only 2.25% down if the buyer pays their own closing costs.  3% down if seller participates in any way.

 Nehemiah and Ameridream are non profit companies that filter seller paid down payment assistance of 3% back to the buyer.  This is not a loan and never needs to be repaid.  This can only be used with FHA products.  The seller simply pays a small processing fee of $499 and the 3% down amount to Either Nehemiah or Ameridream.  They in turn wire money to the closing table as a “gift” to the buyer.   The seller can also pay Closing costs and Prepaids and Escrow reserves up  to 6% of the loan  amount.  There are no homebuyer classes required.  Buyer can come to the table with ZERO cash out of their pocket.    This is great for nurses, teachers, firefighters, county workers, any union member. Since there are no income limits,  anyone can use FHA.  Particularly working families have a hard time saving the down payment.  FHA also allows all closing costs, down payment, prepaids/escrows to be a gift from  a family member.  FHA also allows state and county subsidies.    In addition, Chase will offer reduced closing costs to any union member.    FHA will use  “alternative credit” if the credit bureau report shows no score or insufficient credit.  This means, the borrower must show ability to repay debt.  Such as cell phone, car insurance, gym membership, room & board, rent.     If these can be verified in some way, we can use it as “credit”.     New employment is not a problem. Don’t have to be in the same line of work or on the job for any length of time.  Cosigners are allowed for debt ratio issues only.  Must be a relative.

 FHA has reduced monthly PMI payments.  Much lower than conventional PMI.    This is a government insured loan (Dept of Housing & Urban Dev.)

 

All lenders are differnt and have different programs available.  That is a good thing because everyone needs different ways of financing.  Call Rhonda to find out who the best lenders are in Ocala, Florida. and to find you the perfect home in Ocala  352-266-2637