Loan program cheat sheet

FHA – Federal Housing Administration

• Most commonly used by first time home buyers
• Don’t have to be a first time home buyer to qualify
• Several “move-up” buyers use this loan because it allows for high debt ratios
• Condos need to be FHA approved
• FHA condo approval website: https://entp.hud.gov/idapp/html/condlook.cfm
  • Use this website to see if your condo HOA is FHA approved

Max loan amount
– 420,680

Down Payment

– 3.5% minimum

Credit Score needed

– 600+ (can do a manual underwrite down to 580)

• Rates are much better with a 640+ score

Mortgage insurance

– required at all LTV’s on a 30 year loan

• Payable for 30 years with less than 10% down
• Payable for 11 years with 10% or more down

Occupancy

– primary residence only

Seller paids allowed

– 6%

Conventional

• Typically used by those with more money down and better credit
• Can be used by first time home buyers
• Tighter credit guidelines and debt to income ratios
• More lenient on appraisals
• Minimum credit score is 620

Max loan amount

• 647,200

Down Payment

Primary – minimum is either 3% or 5% down

2^nd home – 10% down

Investment – 15% down (if you have a 740 or higher score)

• 20% down (if your score is 739 or less)
• 25% down (if 2-4 unit)

Credit Score

– 620+ (rates and MI are higher with lower credit scores)

Mortgage insurance

– required on LTV’s greater than 80%

Occupancy

– primary, 2^nd home, investment

Seller paids

Primary and 2^nd home:

• 5% – 9.99% down = 3%
• 10% – 24.99% down = 6%
• 25%+ down = 9%

Investment property

• 2% across the board

VA

• Have to be a vet and have a certificate of eligibility
• Very good program if you can qualify
• Need forms:
  • COE (certificate of eligibility)
  • DD2-14
• Condos have to be VA approved
• Condo approval website: https://vip.vba.va.gov/portal/VBAH/VBAHome/condopudsearch
  • Use this website to see if your condo is VA approved

Down payment

– 0%

Credit Score needed

– 600+ (can do a manual underwrite down to 580)

Mortgage insurance

– none (the government pays for this)

Note – The VA charges a funding fee that can be rolled into the loan

Occupancy

– primary residence only

Seller paids

– 4%

USDA

• Rural development program
• Map to see if your property is eligible for this loan program:
  • https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp
• Good program but have to be buying a house that is in an eligible area
• Can’t finance farms or properties with a high number out-buildings and/or tillable land on the lot
• Must be underwritten twice: lender and USDA office
• Has income limit – check website and look up limit for specific county
• Borrower CANNOT own any other properties when they close on this loan

Down Payment

– 0%

Credit Score Needed

– 620 (can do a manual underwrite down to 580)

Mortgage Insurance

– .35 annually (which is cheap)

• They also charge an upfront funding fee of 1.0% which is rolled into the loan amount

Occupancy

– primary only

Seller paids

– 6%

Specialty Programs

1. MHFA – down payment assistance through the state
   1. Same Guidelines as FHA, Conv, or VA. Max DTI of 45-50%.
   2. Minimum credit score is 640 to 650
   3. Borrower needs at least $1,000 out of their own pocket into the deal
   4. Income limits apply – Varies by county & household size.
   5. Max purchase price limits apply
      1. Start-Up program (First Time Buyers)
         1. 11 County Metro- $340,000
         2. Balance of State- $294.600
      2. Step-Up program
         1. 11 County Metro- $402,500 (1 Unit) $515,250 (2 Unit)
         2. Balance of State- $356,362 (1 Unit) $456,275 (2 Unit)
      3. Down payment assistance available is 5% of the purchase price with a max amount of:
         1. Deferred DPA – Up to – $11,000 or $15,000 with Deferred payment plus program (More restrictions)
         2. Monthly DPA – Up to $17,000 (10 year amortization)
      4. FHA 203k – rehab loan through FHA
      5. Homepath – discontinued as of 11/1/14. Replaced with HomeReady.
      6. FNMA HomeReady – 3.00% down conventional loan (has income limit)
      7. Freddie Home Possible – 3.00% down conventional loan (has income limit)
      8. Fannie Standard 3.0% down – this is the third 3.00% down conventional loan and does not have an income limit, but you have to be a first time home buyer

Loans with Income limits

1. USDA
2. All MHFA loans
3. Two of the three 3% conventional loans have income limits
   1. Home Ready – DU
   2. Home Possible – LP