| FHA
Loan Program
The FHA Loan Program is 3% down (0% down to approved
buyers) with NO minimum credit score requirement and a minimum 5 year
MI/MIP. What this means to you as the home buyer is:
3% Down - Minimum down payment required is 3% of Sale Price
1) Any Earnest Money that you are required
to give to your realtor at the time of an accepted purchase contract will
count towards your 3% down payment.
2) Appraisal Fee (Fixed fee of $300.00)
collected at the time of your application will also count towards your
3% down payment.
If, for example, you are purchasing a $100,000 house, your minimum down
payment required would be $3,000.00. If your seller/realtor
required you to put down $500.00 in earnest money on top of the $300.00
for your appraisal, your down payment would be lowered to $2,200.00.
Any cash payments you make that are included in you loan program will
count towards your 3% down payment.
No Minimum Credit Score-
FHA 203(b) pre-qualifications are NOT based upon
Credit Score. If you have been turned down by a conventional bank
because of your credit, credit score, or slow repayment history, the
FHA 203(b) program may be the answer to your home buying needs.
The Federal Housing Administration is aware that people have had difficulties
in the past due to layoffs, job changes, and changes in living arrangements.
IF you have had problems in the past that have affected your ability to
pay your bills on time but have made an earnest effort within the last
6-12 months to correct this, we can help you get a home loan!
MI/MIP - Mortgage Insurance
MI stands for Mortgage Insurance. MIP stands
for Mortgage Insurance Premium. This is an insurance policy that
is required by the government for any loan program that has a down payment
of less than 20% of the sale price. Because the down payment requirement
on the FHA 203(b) program is only 3%, there is a Mortgage Isurance requirement.
The up front Mortgage Insurance Premium is financed into your loan with
no cash requirement from you the home buyer. The Mortgage Insurance
Permium is included in your monthly payment for a minimum of 5 years.
0% Down - For Qualified Borrowers
The FHA 203(b) program can also be offered with
the Ameridream Downpayment Gift Program as well as the Liberty Gold Downpayment
Assistance Program. If you would like more information on these
programs please don't hesitate to contact us. If you would like
to see if you can qualify for the FHA 203(b) program with the Ameridream
or Liberty Gold 0% down plans, please fill out our Pre-qualification application.
If you have any additional questions,
don't hesitate to call us Toll Free at: 1-877-721-8895 |
