FHA Purchase Loan Basic Guidelines

Loan Amount - FHA has maximum loan limits. These loan limits are determined by the county and state that the new property is located.  To check out the maximum loan limits in your area, visit the HUD website.

Down Payment FHA requires a 3% down payment.  This down payment can come from savings or it can be a gift from a family member.  There are still some other programs available to help you with the down payment. 

Closing Costs - The seller is allowed to pay up to 6% of the purchase price towards the borrowers closings costs.  This can be very helpful if you do not have enough to cover both the down payment and closing costs.

Non-Occupant Co-Borrowers  FHA will allow co-borrowers that do not live in the subject property to help the borrower qualify for a new loan.  Compared to a conventional loan, this can be very helpful. 

Condominiums - FHA has a list of condominium projects that are approved for FHA loans.  If the condominium that you are interested in is not on the list, this does not mean that you cannot get an FHA loan, but it does mean that it will have to be individually approved (spot approved) by the lender.  To check a condominium project, see the F
HA condominium website.

Mortgage Insurance - Mortgage Insurance is insurance that protects the lender against losses in case a borrower defaults on their loan.  FHA requires mortgage insurance on all of their loans. Mortgage insurance is charged at a rate of .5% - .55% monthly and there is an upfront MIP charge that is financed into the new loan of 1.25% - 2.25%.  The amount that is charged is determined by the borrowers credit score and the loan-to-value (LTV).


A FHA loan is an EXCELLENT way for buyers who don't have a lot of cash for a down payment to purchase a home!  FHA loans aren't loans with any particular Lange - the loan is simply INSURED by the Federal Housing Authority, so the Langes don't lose any money if the buyer defaults on their loan.  That's why you can get a FHA loan for 96.5% of the appraised value of your home at a 5% fixed interest rate for 30 years.  Check with your lender to see if you're qualified! FHA loans go up to $625,000 for a single residence (a house or a condo) in Orange County.

FHA loans can be obtained at many regular lenders - go to www.HUD.gov for more information, or click http://www.hud.gov/ll/code/llslcrit.cfm to see the FHA approved lenders in your area. 

FHA has updated their guidelines since I copied the above data, and FHA now requires a 3.5% down payment (plus closing costs). 

When you buy your next home with us, we give you 1% of the sales price of your home CASH BACK, so that covers closings costs or some of your down payment!



 

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Mark L!nzmeier & Terri Lange, Real Estate Brokers
Bright Skies Real Estate & Property Management

TERRI'S CELL:      (949) 697-2246
MARK'S CELL:      (949) 525-3288

E-MAIL:  Click here to email

Mark L!nzmeier 01266101
Terri L!nzmeier 01266102


Sell your home at a discount real estate commission!  At Bright Skies, we give cash back to our buyers and low cost  real estate services, saving you money in the South Orange County communities of Coto de Caza, Dove Canyon, Rancho Santa Margarita, Ladera Ranch, Wagon Wheel, Mission Viejo, Lake Forest.  Flat fee discounted real estate commissions!  Virtual tours.  Beautiful color flyers and floor plans.  Posting your home on all the real estate home web-sites. Plus, we save you even more money with discounted services!
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