The FHA loan program offers many advantages including a low 3% down payment – if you are curious just what it all means here is an example if you were to purchase a home and take advantage of the new loan limit of $697,500 – which would allow a purchase price of $719,000.
Here is an example, please contact a lender for an exact estimate:
Jumbo Conforming Loan ~ 30 Year Fixed
Sales Price $719,000
Down payment % 3%
Down Payment $ $21,500
Loan Amount $697,500
Interest Rate 6.375%
Term of Loan 360 Months
Monthly Principal
& Interest Payment $4,351
Mortgage Insurance $290
Hazard Insurance $70
Property Taxes $749
Total Payment $5,460
Possible Tax Benefit $1,661
Net Payment $3,799
What would you need in order to qualify for an FHA approved loan?
Below are a few of 
the common conditions:
• Not FICO driven, but requires clean credit in last 12 months
• BK in last 2 yrs ok, Foreclosure in last 3 yrs ok
• Full income documentation
• No seasoning of downpayment required, can be a gift from friend or relative
• Max of 97% for loan to value (usually the purchase price)
• Mortgage Insurance will be required, sometimes the premium of 1.5% of the loan can be applied to the loan
• Condition of home must meet HUD regulations
• No “flipping” allowed
Should you like to learn more we would be happy to put you in touch with our affiliate lender, Home Services Lending.
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Another point to mention…upon talking to our affilitate Lender, Home Services Lending, we found out that it is possible to prove credit worthiness by way of showing that you have made responsible payments to things other than a loan. For example, you can get a letter from your insurance provider stating how long you have been a member and the length of time that you have made timely payments to them. Of course this may not be something that is approved for all to use, but its good to know that there are things other than loans that can be reviewed to prove to a lender that you are responsible with your payments.
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