Low Down Payment Mortgage Programs

Low Down Payment Mortgage

The mortgage down payment is a barrier faced by first-time home buyers for generations. Even if you have steady employment and good credit scores, a large down payment can be much harder to achieve. Read More

Mortgage Debt-to-Income Ratio – Conventional, FHA, VA, USDA Loan DTI

DTI Ratio

The Debt-to-Income Ratio, also known as “DTI Ratio”, are simply a couple of percentage representing applicant debt compared to their total income. Lenders use mortgage debt-to-income ratio percentages to evaluate a borrowers ability to repay them as agreed. Maximum debt-to-income ratios may vary based upon the mortgage program and the lender. Read More

FHA Loan Requirements Review | 2017

FHA Loan Requirements

FHA loans are a terrific option for home buyers with lower incomes, imperfect credit ratings or limited cash available for a down payment. In fact, FHA loan requirements feature a certain flexibility which makes them the only option available for millions of American mortgage applicants with “average” qualifications. That’s why FHA loans jumped in popularity after the 2008 financial crisis when subprime mortgage options were eliminated. Read More

FHA Mortgage Insurance

FHA Mortgage Insurance

Mortgage insurance is a protecton that guards lenders in case of applicant default.  Mortgage insurance is usually required on mortgages with a down payment that’s 20 percent or less.

Plainly stated, FHA MI is required for all FHA loan programs including FHA purchase loans, FHA refinance loans and FHA Streamline refinance loans. FHA guidelines for it’s insurance programs are what lenders use to determine if applicants are eligible for a loan.  These requirements are usually less demanding than other, non-insured mortgage programs. Read More

Ups and Downs: 6 Years of FHA Mortgage Insurance Volatility

History of FHA Mortgage Insurance

FHA mortgage insurance rates have just been reduced in an unexpected move that offers the housing market a much needed boost. This .5% across the board MIP reduction will help more home shoppers become homeowners in 2015 and also reduce costs for thousands of borrowers looking to refinance. Read More

FHA Approved Condos | 2017

FHA loans are a great way to purchase a new condo with a small down payment, or refinance a condo will a small amount of equity.  FHA approved condos contain a few key characteristics that make FHA condo loans unique to other mortgage programs.

What are FHA approved condo projects?

Federal Housing Authority insures mortgages up to 30 years in length to purchase or refinance a single unit in an FHA-approved condo complex.  For a condo to be approved for an FHA loan, it must first meet guidelines for HUD approved condos.  Once a complex is approved, it’s residential units are available for FHA financing.

What are the FHA condo approval guidelines?

  • Condominium complex must contain 2 units or more
  • Less than 25 percent of the total complex or unit square footage may be used for nonresidential purposes (exceptions up to 50% may be allowed)
  • No more than 10% of condo complex’s units can be owned by one party
  • No more than 15% of condo complex’s combined HOA dues can be delinquent
  • At least 50% of the total complex units must be owner occupied, or under contract to sell to owner occupants
  • Timeshares and condo projects managed as hotels or motels are also ineligible, even if the units are individually owned.
  • Condo building configuration can be detached, semi-detached, row house, mid-rise or high-rise.
  • All condo units must meet state law requirements for liability insurance, hazard insurance, flood insurance, as determined by HUD
  • Condo project finance documents are reviewed including budget, balance sheet, income and expenses.
  • FHA approved condo complexes must be re-certified every two years for HUD compliance

How do you know if a condo is FHA approved?

HUD maintains a list of approved FHA condos around the country. If the subject property isn’t on the HUD FHA approved condo list, it’s still possible to get an mortgage approval if the lender does a little more legwork.  The lender, realtor or HOA can initiate application for FHA condo approval for the entire project through the “HUD Review and Approval Process” (HRAP) or the lender can attempt a “Site Condo” approval through the “Direct Endorsement Lender Review and Approval Process” (DELRAP).

You can lookup HUD approved condos for all 50 states through the links below.

FHA Approved Condos

Alabama FHA Approved CondosAlaska FHA Approved Condos
Arkansas FHA Approved CondosArizona FHA Approved Condos
California FHA Approved CondosColorado FHA Approved Condos
Connecticut FHA Approved CondosDelaware FHA Approved Condos
Florida FHA Approved CondosGeorgia FHA Approved Condos
Hawaii FHA Approved CondosIdaho FHA Approved Condos
Illinois FHA Approved CondosIndiana FHA Approved Condos
Iowa FHA Approved CondosKansas FHA Approved Condos
Kentucky FHA Approved CondosLouisiana FHA Approved Condos
Maine FHA Approved CondosMassachusetts FHA Approved Condos
Maryland FHA Approved CondosMichigan FHA Approved Condos
Minnesota FHA Approved CondosMississippi FHA Approved Condos
Missouri FHA Approved CondosMontana FHA Approved Condos
Nebraska FHA Approved CondosNevada FHA Approved Condos
New Hampshire FHA Approved CondosNew Jersey FHA Approved Condos
New Mexico FHA Approved CondosNew York FHA Approved Condos
North Carolina FHA Approved CondosNorth Dakota FHA Approved Condos
Ohio FHA Approved CondosOklahoma FHA Approved Condos
Oregon FHA Approved CondosPennsylvania FHA Approved Condos
Rhode Island FHA Approved CondosSouth Carolina FHA Approved Condos
South Dakota FHA Approved CondosTennessee FHA Approved Condos
Texas FHA Approved CondosUtah FHA Approved Condos
Vermont FHA Approved CondosVirginia FHA Approved Condos
Washington FHA Approved CondosWest Virginia FHA Approved Condos
Wisconsin FHA Approved CondosWyoming FHA Approved Condos

FHA eases wait period after Bankruptcy and Foreclosure

FHA Loan Back to Work Program

The Federal Housing Administration recently announced that it will soon be easier for borrowers with bankruptcy, foreclosure or a short sale in their past to qualify for an FHA loan. On August 15th, HUD released a mortgagee letter outlining new requirements for applicants who have experienced an “economic event” in their past that they have since recovered from. Read More

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