FHA Facts you Should Know

1. FHA loan CAN be closed in 30 days from origination!

2. No Credit Score Required.

3. 95% Cash out Refi on 1-2 units and 85% Cash out on 3-4 units.

4. 96.5% Purchase, 3.5% Down Payment.

5. 100% Gift Funds allowed.

6. BK ok, after 2 years, Foreclosures 3 years.

7. Reserves Not Required.

8. Cash on hand allowed (no seasoning) if buyer fits profile.

9. No prepayment Penalty.

10. Manual Underwriting acceptable and allowed on all programs.

11. Seller Concessions up to 6% regardless of LTV/CLTV.

12. Qualifying ratios 31%/43% (may be higher with compensation factors or Du/Lp Eligible.

13. Appraisal VC Sheets, homebuyer summary and most repairs requirements eliminated.

14. No Credit Qualifying streamline refinance (FHA loan to FHA loan).

15. Loss Mitigation/foreclosure prevention on every FHA loan insured.

16. No Fico Ok! Just add non-traditional lines of credit. (i.e., SCE, The Gas Co, Verizon, Cell phone, etc).

17. Buyer in Chapter 13 ok! (see 4155.1 for guidelines).

18. Non-Occupant Co-Borrower ok! (i.e., buying in Ca and non occupant Co-Borr in NY Ok!).

19. Condo, SFR, 1-4 Units ok!

20. No termite needed.

21. 12 months seasoning on new appraised value. MIP now required 1.75% MIP and MI .55.

22. Flipping over 3 months.

23. Adding people to title only when they occupy property (No non-occupants on refi's to qualify).

24. 401k's is 60% of assets.

25. Assets: VOD + 1 month bank statement or 2 months bank statements.

26. Need SS# or SS verification.

27. Gifts require cashiers check & donors ability (bank statements).

28. No Purchasing Spouse: Need to hit borrower with debt (spouses credit needed).