Is FHA Misunderstood?
FHA insured mortgages are historically the most popular choice for home buyers and home owners without a large down payment or with limited equity in your home. Many people think that you have to be a first time buyer to use a FHA insured mortgage to buy a home, and this is simply not true.
- Owner Occupied only – borrower must live in the home as a primary residence
- Minimum 620 Credit Score
- Full income / asset documentation only – W2 and/or tax returns
- 3.5% minimum down payment
- No minimum borrower contribution required – 100% down payment can be gift
- 30 Year Fixed
- 15 Year Fixed
- 5/1 ARM – Adjustable Rate Mortgage
- Upfront Mortgage Insurance Premium can be financed into loan amount
- Annual Mortgage Insurance Premium (paid monthly)
Properties eligible for FHA finaning include:
- 1 family residence – single family residence (SFR)
- 2 family residence – duplex (owner must occupy one unit)
- 3 family residence – triplex (owner must occupy one unit)
- 4 family residence – fourplex (owner must occupy one unit)
- Single family Condominium – with FHA approval
- Single family Townhouse – with FHA approval
The maximum loan amount allowed when using an FHA insured mortgage is determined by the County you live in. Loan amounts can also vary based on the number of units in the property.
Example 1: FHA Loan Limits for Hilo, Hawaii.
- 1 family residence – $618,750*
- 2 family residence – $792,100*
- 3 family residence – $957,500*
- 4 family residence – $1,189,900*
Example 1: FHA Loan Limits for Honolulu, Hawaii
- 1 family residence – $793,750*
- 2 family residence – $1,016,150*
- 3 family residence – $1,228,300*
- 4 family residence – $1,526,450*
* FHA Mortgage Maximum Limits as of Nov. 2012.
Waiting Periods after Credit Hardship
- 2 Years from Discharge of Chapter 7 Bankruptcy
- 1 Year from Discharge of Chapter 13 Bankruptcy
- 3 Years from Foreclosure, Short Sale or Deed in Lieu of Foreclosure