FHA Loan:

FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.

FHA loans are an attractive option, especially for first-time homeowners:

  • Generally easier to qualify for than conventional loans.
  • Lower down payment requirements.
  • Cannot exceed statutory loan limits.
  • 15 & 30 year fixed rate programs available.
FHA requires an Up Front Mortgage Insurance Premium as well as a monthly mortgage insurance premium

FHA 203(k) Rehabilitation Loan

The standard FHA 203(k) loan is used to purchase or refinance a home that needs major rehabilitation, or when the repairs are structural in nature. The standard 203(k) loan is also used when the total renovation costs exceed the $35,000 limit of the 203(k) streamline loan. Also, the borrowers will receive an added layer of protection from the use of a 203(k) consultant. 203(k) Consultants are experts in their field and are used to safeguard against under or over estimating the cost of the repairs.

FHA Streamlined 203(k):

The FHA Streamline 203(k) is an all-in-one loan used for homes that need minor repairs. It allows borrowers to finance the purchase of an existing home or refinance a home they currently occupy and make improvements or upgrades of up to $35,000. There are no minimum repair costs with the FHA Streamlined 203(k) loan.

Structural alterations and additions (with upfront approval)

  • Upgrade central air/heat, and electrical systems
  • Repair termite or moisture damage
  • Remodeled kitchen and baths, modernize plumbing
  • Install or repair well or septic systems
  • Roofing, gutters, downspouts
  • Flooring, tiling and carpeting, interior / exterior painting
  • Energy conservation improvements
  • Major landscaping
  • Improvements for disability accessibility
  • New free standing appliances
  • Foundation repair
  • Other improvements that are a PERMANENT part of the real estate*
*Luxury items are not permitted to be included in the financing

FHA Manufactured Housing

Appraisals are $600 and all properties must be inspected by a foundation engineer and receive a certificate. If any repairs to the foundation are needed they must be completed prior to closing.

FHA Repair Escrow

FHA 203(b) with Repair Escrow is intended to facilitate uncomplicated rehabilitation to a home being purchased from HUD. To qualify, HUD must agree to allow a Repair Escrow per the purchase contract and the appraisal must be marked as "Insurable with Repair Escrows". The funds for the repairs and reserve contingency are borrowed and cannot be more than $5,000 combined. The repair items cannot require plans, consultants, engineers

FHA $100 Down

HUD (the US Department of Housing and Urban Development) has announced a limited-time sales incentive program which allows qualified buyers to buy HUD homes with a down payment of only $100, as long as:

  • The buyer will live in the property for at least one year (investors do not qualify for this incentive)
  • The buyer offers the full asking price for the home, and The buyer uses an FHA loan for the purchase. The $100 Down Program from HUD is designed to attract buyers to the market to move the overstock inventory.

Some additional eligibility requirements:
  • The home purchased must be a HUD owned home.
  • Buyers must use a HUD-registered real estate broker or agent in order to get the incentive.
  • The property must be purchased “as-is.”
  • The subject property must be located in an eligible area only.
  • HUD determines which areas are eligible.
  • Contract of Sale must acknowledge the $100 down program.
  • LTV is based on the borrower contributing $100 of sales price (appraised value must support sales price or higher).

If the appraised value is less than the sales price, the borrower will need to add the difference of the appraised value and the sales price to the original $100.00 to meet the required down payment.

FHA Programs Available

  • FHA Streamline Refinances
  • FHA Rehab Loan
--This program allows borrowers to roll in improvements / repairs into their loan

Click below for a list of the items you will need to provide in order to process your mortgage

Click below for a list of the items you will need to provide in order to process your mortgage