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FHA Mortgage Insurance Program

VIEWS: 13 PAGES: 2

  • pg 1
									AT-A-GLANCE



FHA Mortgage Insurance
Program
OVERVIEW
FHA loans provide flexible lending solutions that can help expand your market reach by offering loans
to qualified customers who have low-to-moderate income, past credit issues, high debt-to-income
ratios and who require low down payments. FHA loans are an attractive option for borrowers who are
first-time buyers and are looking to refinance nonprime loans into a better loan option.

The FHA programs highlighted include:
  203(b) for 1-4 unit family homes
  234(c) for FHA-approved condominium housing
  203(k) for remodeling and rehabilitation of homes
  203(h) for disaster victims


Other HUD/FHA programs* include:
  203(k) streamline provides financing for a purchase or refinance with up to a maximum of
  $35,000 — the additional proceeds must be applied toward repair and rehabilitation of the property.
  FHA Section 247 provides financing for eligible primary residences in Hawaii that are under a
  homestead lease on Hawaiian Home Lands.
  FHA Section 251 provides financing for an eligible primary residence financed with an
  adjustable-rate mortgage (ARM).
  FHA Good Neighbor Next Door provides financing to help revitalize neighborhoods by encouraging
  qualified customers in selected professions to purchase and live in HUD-acquired single family property.
  FHA Energy Efficient Mortgages provide financing for the purchase or refinance of a primary
  residence to incorporate the cost of energy efficient improvements into the mortgage.


TARGET MARKET
An attractive option for customers who:
  May not qualify for conventional financing
  Require more flexibility in calculating household income and payment ratios
  Are first-time homebuyers
  Have low-to-moderate income
  Live in a disadvantaged neighborhood
  Have credit blemishes
  Have a home or are interested in purchasing a property that needs repairs
  Lost their home in a federally declared disaster
  Want to make energy-efficient improvements to their home



For more information contact:


Agent Name
Title / Position
Office: 000-000-0000
Mobile: 000-000-0000
Fax: 000-000-000
Email: name@directorsfc.com




Maximum loan amounts may apply.

* Ask for more details on the HUD/FHA programs not highlighted in this At-A-Glance.


   Equal Housing Lender. Provided to mortgage and real estate professionals only and not intended or authorized for
public distribution. This is not a commitment to lend. Prices and guidelines are subject to change without notice. Some products
may not be available in all states. Restrictions apply.




                                                                                             DirectorsFinancial
                                                                                               C   O   R   P   O   R   A   T   I   O   N




                                                                             087-1
PROGRAM HIGHLIGHTS

                                                                                FHA 234(c)                             FHA 203(k)
                                         FHA 203(b)                                                                                                            FHA 203(h)
                                                                               FHA-Approved
                                    1-4 Unit Family Homes                                                           Remodel and Rehab                        Disaster Victims
                                                                            Condominium Housing

                                Mortgages for customers                Mortgages for customers                Enables the customer to finance        Mortgages to victims of major
                                purchasing or refinancing 1-4 unit     purchasing or refinancing a unit in    both the purchase value and the        disasters who have lost their
                                family homes                           an FHA-approved condo                  cost of rehabilitation through a       homes and are rebuilding or
                                                                                                              single mortgage; it also enables       buying another home; it provides
                DEFINITION                                                                                    the homeowner to finance the           relief to customers whose previous
                                                                                                              rehabilitation of an existing home     residences were destroyed by
                                                                                                                                                     flood, fire, storms, hurricanes,
                                                                                                                                                     earthquakes or other natural
                                                                                                                                                     federally declared disasters

                                1-4 units, modular or prefabricated    1-unit, FHA-approved condos            1-4 units, FHA-approved condos,        1-unit, single-family detached
           PROPERTY TYPE        homes (with restrictions), existing                                           and REO properties with                homes or unit in an FHA-approved
                                properties or new properties                                                  restrictions                           condo

                                Set by HUD and variable by area;       Set by HUD and variable by area;       Set by HUD and variable by area;       Set by HUD and variable by area;
           MAXIMUM LOAN         refer to local FHA guidelines for      refer to local FHA guidelines for      refer to local FHA guidelines for      refer to local FHA guidelines for
                AMOUNT          details                                details                                details                                details

                                Purchase maximum 96.50% LTV            Purchase maximum 96.50% LTV            Purchase maximum 96.50% LTV            Purchase maximum 96.50% LTV
                                and refinance maximum 97.75% LTV;      and refinance maximum 97.75% LTV;      and refinance maximum 97.75% LTV;      and refinance maximum 97.75% LTV;
                                cash-out refinance on properties       cash-out refinance on properties       cash-out refinance on properties       cash-out refinance on properties
                                owned less than 12 months or loan      owned less than 12 months or loan      owned less than 12 months or loan      owned less than 12 months or loan
     MAXIMUM LTV RATIOS         amount > $417,000 maximum 85%          amount > $417,000 maximum 85%          amount > $417,000 maximum 85%          amount > $417,000 maximum 85%
                                LTV; on properties owned greater       LTV; on properties owned greater       LTV; on properties owned greater       LTV; on properties owned greater
                                than 12 months and loan amount         than 12 months and loan amount         than 12 months and loan amount         than 12 months and loan amount
                                < $417,000, maximum 95% LTV            < $417,000, maximum 95% LTV            < $417,000, maximum 95% LTV            < $417,000, maximum 95% LTV
                                with restrictions                      with restrictions                      with restrictions                      with restrictions

                                Loan amounts > $362,790                Loan amounts > $362,790                Loan amounts > $362,790                Loan amounts > $362,790
                                minimum 620 credit score required**    minimum 620 credit score required**    minimum 620 credit score required**    minimum 620 credit score required**
                                Loan amounts < $362,790 minimum        Loan amounts < $362,790 minimum        Loan amounts < $362,790 minimum        Loan amounts < $362,790 minimum
                                580 credit score; minimum 600 credit   580 credit score; minimum 600 credit   580 credit score; minimum 600 credit   580 credit score; minimum 600 credit
            CREDIT SCORE        score on manually underwritten loans   score on manually underwritten loans   score on manually underwritten loans   score on manually underwritten loans

                                (Requirements vary for 2-4 units)      (Requirements vary for 2-4 units)      (Requirements vary for 2-4 units)
                                                                                                                                                     (Requirements vary for 2-4 units)

              OCCUPANCY         Owner-occupied primary residence       Owner-occupied primary residence       Owner-occupied primary residence       Owner-occupied primary residence

                                Purchase, rate/term refinance,         Purchase, rate/term refinance,         Purchase and rate/term refinance       Purchase replacement of a home
           LOAN PURPOSE         cash-out refinance or streamline       cash-out refinance or streamline                                              or rebuild destroyed home
                                refinance                              refinance

                                10-, 15-, 20-, 25- and 30-year         10-, 15-, 20-, 25- and 30-year         15-, 20-, 25- and 30-year              10-, 15-, 20-, 25- and 30-year
                                fixed-rate mortgages (FRM); 3/1        fixed-rate mortgages (FRM); 3/1        fixed-rate mortgages (FRM);            fixed-rate mortgages (FRM); 3/1
                                and 5/1 adjustable-rate mortgages      and 5/1 adjustable-rate mortgages      1-year adjustable-rate mortgages       and 5/1 adjustable-rate mortgages
     ELIGIBLE MORTGAGES
                                (ARM) with 30-year term                (ARM) with 30-year term                (ARM) with 30-year term (not           (ARM) with 30-year term
                                                                                                              allowed in high-cost areas)

   SECONDARY FINANCING          Allowed                                Allowed                                Allowed                                Allowed

                                The minimum down payment               The minimum down payment               The minimum down payment               The minimum down payment
                                requirement on purchase                requirement on purchase                requirement on purchase                requirement on purchase
                                transactions is 3.5%                   transactions is 3.5%                   transactions is 3.5%                   transactions is 3.5%
             BORROWER           (previously 3%); refinances            (previously 3%); refinances            (previously 3%); refinances            (previously 3%); refinances
          CONTRIBUTION /        may not require a down                 may not require a down                 may not require a down                 may not require a down
          DOWN PAYMENT          payment if the borrower has            payment if the borrower has            payment if the borrower has            payment if the borrower has
                                substantial equity in his or           substantial equity in his or           substantial equity in his or           substantial equity in his or
                                her home                               her home                               her home                               her home

                                Borrower’s own funds; proceeds         Borrower’s own funds; proceeds         Borrower’s own funds; proceeds         Borrower’s own funds; proceeds
                                from 401(k); gifts from relatives,     from 401(k); gifts from relatives,     from 401(k); gifts from relatives,     from 401(k); gifts from relatives,
        SOURCE OF FUNDS         fiancé/fiancée or domestic             fiancé/fiancée or domestic             fiancé/fiancée or domestic             fiancé/fiancée or domestic
                                partner; or cash-on-hand               partner; or cash-on-hand               partner; or cash-on-hand               partner; or cash-on-hand

                                Up to 6% allowed to cover closing      Up to 6% allowed to cover closing      Up to 6% allowed to cover closing      Up to 6% allowed to cover closing
       INTERESTED PARTY         costs, prepaids, expenses,             costs, prepaids, expenses,             costs, prepaids, expenses,             costs, prepaids, expenses,
          CONTRIBUTIONS         discount points and other              discount points and other              discount points and other              discount points and other
                                financing concessions                  financing concessions                  financing concessions                  financing concessions

                                Direct Endorsement (DE)                Direct Endorsement (DE)                Direct Endorsement (DE)                Direct Endorsement (DE)
                                underwriters are qualified to          underwriters are qualified to          underwriters are qualified to          underwriters are qualified to
           UNDERWRITING
                                underwrite FHA loans; loans            underwrite FHA loans; loans            underwrite FHA loans; loans            underwrite FHA loans; loans
                METHOD          may be manually underwritten           may be manually underwritten           may be manually underwritten           may be manually underwritten
                                or submitted to AUS                    or submitted to AUS                    or submitted to AUS                    or submitted to AUS

                                Maximum qualifying ratios are          Maximum qualifying ratios are          Maximum qualifying ratios are          Maximum qualifying ratios are
                                determined by the AUS; for             determined by the AUS; for             determined by the AUS; for             determined by the AUS; for
                                manually underwritten loans a          manually underwritten loans a          manually underwritten loans a          manually underwritten loans a
                                maximum qualifying ratio of            maximum qualifying ratio of            maximum qualifying ratio of            maximum qualifying ratio of
       QUALIFYING RATIOS        31/43%, which may be                   31/43%, which may be                   31/43%, which may be                   31/43%, which may be
                                exceeded only when significant         exceeded only when significant         exceeded only when significant         exceeded only when significant
                                compensating factors are               compensating factors are               compensating factors are               compensating factors are
                                present and approved by a DE           present and approved by a DE           present and approved by a DE           present and approved by a DE
                                Underwriter                            Underwriter                            Underwriter                            Underwriter

                                Temporary buydowns are                 Temporary buydowns are                 Temporary buydowns are                 Temporary buydowns are
                                permitted on fixed-rate,               permitted on fixed-rate,               permitted on fixed-rate,               permitted on fixed-rate,
              TEMPORARY         purchase transactions;                 purchase transactions;                 purchase transactions;                 purchase transactions;
               BUYDOWNS         customer must qualify at               customer must qualify at               customer must qualify at               customer must qualify at
                                the note rate                          the note rate                          the note rate                          the note rate

                                None required on 1-2 units; 3-4        None required on 1-2 units; 3-4        None required on 1-2 units; 3-4        None required on 1-2 units; 3-4
                RESERVES        units require 3-months                 units require 3-months                 units require 3-months                 units require 3-months

                                Up-Front Mortgage Insurance            Up-Front Mortgage Insurance            Up-Front Mortgage Insurance            Up-Front Mortgage Insurance
                                Premium (UFMIP) and                    Premium (UFMIP) and                    Premium (UFMIP) and                    Premium (UFMIP) and
                                Mortgage Insurance Premium             Mortgage Insurance Premium             Mortgage Insurance Premium             Mortgage Insurance Premium
                                (MIP), paid monthly, required          (MIP), paid monthly, required          (MIP), paid monthly, required          (MIP), paid monthly, required
                                (MIP not required with LTV             (MIP not required with LTV             (MIP not required with LTV             (MIP not required with LTV
                                < 90% with a mortgage term             < 90% with a mortgage term             < 90% with a mortgage term             < 90% with a mortgage term
                                of 15 years or less)                   of 15 years or less)                   of 15 years or less)                   of 15 years or less)

               MORTGAGE         Once the annual premium term           Once the annual premium term           Once the annual premium term           Once the annual premium term
               INSURANCE        has been fulfilled, the monthly        has been fulfilled, the monthly        has been fulfilled, the monthly        has been fulfilled, the monthly
                                MIP will be canceled, provided         MIP will be canceled, provided         MIP will be canceled, provided         MIP will be canceled, provided
                                that the borrower has paid the         that the borrower has paid the         that the borrower has paid the         that the borrower has paid the
                                annual MIP for at least 5 years        annual MIP for at least 5 years        annual MIP for at least 5 years        annual MIP for at least 5 years
                                (scheduled or actual); the value       (scheduled or actual); the value       (scheduled or actual); the value       (scheduled or actual); the value
                                will be based on the lower of          will be based on the lower of          will be based on the lower of          will be based on the lower of
                                the initial sales price or the         the initial sales price or the         the initial sales price or the         the initial sales price or the
                                appraised value based on the           appraised value based on the           appraised value based on the           appraised value based on the
                                initial amortization schedule          initial amortization schedule          initial amortization schedule          initial amortization schedule


** Varies by number of units.


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