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    Loan program cheat sheet

    FHA – Federal Housing Administration

    – Most 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
    – FHA condo approval website: https://entp.hud.gov/idapp/html/condlook.cfm
    o Use this website to see if your condo HOA is FHA approved

    Max loan amount

    – 356,362

    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

    – 510,400

    Down Payment

    Primary – minimum is either 3% or 5% down

    2nd home – 10% down

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

    o 20% down (if your score is 739 or less)
    o 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, 2nd home, investment

    Seller paids

    Primary and 2nd 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:
    o COE (certificate of eligibility)
    o DD2-14
    – Condos have to be VA approved
    – Condo approval website: https://vip.vba.va.gov/portal/VBAH/VBAHome/condopudsearch
    o 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:
    o 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)
      6. 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)
    2. FHA 203k – rehab loan through FHA
    3. Homepath – discontinued as of 11/1/14. Replaced with HomeReady.
    4. FNMA HomeReady – 3.00% down conventional loan (has income limit)
    5. Freddie Home Possible – 3.00% down conventional loan (has income limit)
    6. 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

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