| If you are thinking about buying a home or refinancing | | | | score, which is a minimum of 580. A previous |
| your mortgage, you may be wondering if an FHA | | | | bankruptcy only needs to be discharged for two |
| mortgage has something good to offer, but unless you | | | | years, and only three years after a foreclosure. Good |
| happen to be a loan underwriter who needs to digest | | | | credit explanations will be required.o Flexible Qualifying |
| a full course of FHA guidelines, you may just want the | | | | Debt Ratios |
| meat and potatoes of the program, so here are some | | | | The total mortgage payment including property taxes |
| of the main menu highlights:o Low Down Payment | | | | and insurance should be a maximum of 29% of gross |
| Purchase | | | | income before deducting taxes, and a maximum of |
| An FHA mortgage can provide financing to buy a | | | | 41% of gross income for the mortgage payment plus |
| home with a down payment as low as 3.5%. If | | | | all other monthly debt payments. These FHA |
| necessary, FHA will allow certain down payment | | | | mortgage debt ratios can be higher with compensating |
| assistance, such as gift funds from a relative.o Cash | | | | factors, such as, good cash reserves, job stability, or a |
| Out on a Refinance Mortgage | | | | good credit history. If necessary, a non-occupant |
| FHA mortgages allow up to 85% loan to value on a | | | | co-borrower can be added to the mortgage to help |
| cash out refinance, which is substantially more than | | | | qualify. |
| conventional refinancing, and more than most home | | | | One other point to keep in mind, an FHA mortgage |
| equity loan programs. There are some restrictions | | | | requires an insurance premium of 1.5% at closing, which |
| regarding the seasoning time of ownership and the | | | | can be added onto the loan amount, plus, a monthly |
| home valuation.o Flexible Credit Guidelines | | | | insurance premium of .5% added onto the payment. |
| FHA mortgage guidelines take into consideration a | | | | Condos do not require the up-front premium, only the |
| borrower's overall credit history, not just the credit | | | | monthly amount. |