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First Time Home Buyers “No Money Down”

Post author:Doug Thaler
Post published:January 19, 2019
Post category:First Time Home Buyer / Types of Home Loans
Post comments:0 Comments

First time Home Buyers 96.5 percent LTV Loan and no money down

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.

800-826-5077

NUTS AND BOLTS

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 96.5 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.

Standard Loan Limits

This is a listing of the FHA single family mortgage limits. This listing was downloaded from the Department’s Computerized Home Underwriting Management System. Since mortgage limits are updated constantly, please contact us for the latest home loan limits.

Loan Limits in the areas we serve can be found HERE

Insurance on FHA mortgages are often rolled into the total monthly payment at 0.55 percent of the total loan amount which is roughly half of the price of mortgage insurance on a conventional loan. FHA will collect the annual MIP, which is the time on which you will pay for FHA Mortgage Insurance Premiums on your FHA loan.

Cancellation of the premiums are as follows:

o No more than 15 year term. Loan to value at closing up to 90% 11 year termination

o No more than 15 year term. Loan to value at closing greater than 90%
No cancellation until loan paid off

o Greater than 15 year term. Loan to value at closing up to 90%. 11 year termination

o Greater than 15 year term. Loan to value at closing greater than 90%
No cancellation until loan paid off

https://www.youtube.com/watch?v=6DmpUT0g1-M

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.

NUTS AND BOLTS

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.

Fill out the form to the right to qualify now or call 800-826-5077 with any questions.