FHA Flashcards
What is the maximum LTV for FHA loans?
96.5%
FHA max underwriting ratios?
31% housing
43% total
When is MIP required on a FHA loan?
• For Loans with Less than 10% Down Payment: MIP is required for the life of the loan.
• For Loans with 10% or More Down Payment: MIP is required for at least 11 years.
Unlike conventional loans, FHA loans require MIP even if the borrower puts down a significant amount, and it doesn’t automatically fall off once you reach 20% equity like with Private Mortgage Insurance (PMI).
FHA maximum seller concessions?
Seller concessions is limited to 6%
FHA: all borrowers must be run through CAIVRS which tells the lender what?
If the borrower has an open FHA loan, default on an FHA mortgage, or government insured student loan. The borrower may not be eligible for another FHA loan.
FHA: how soon does occupancy need to occur and how long must it be maintained?
Within 60 days. Must be maintained for a year.
FHA: What is the upfront MIP (mortgage insurance premium)? Can it be added to the loan amount?
1.75%
Yes
FHA: What is the monthly MIP factor?
.85%
FHA ______ mortgage loans made by approved lenders.
Insures
What is the minimum down payment and credit score for FHA?
3.5%
580 credit score
Sellers may contribute up to __% of the LESSER of the sales price or appraised value towards closing costs.
6%
What is an UFMIP and when does it apply?
Up Front Mortgage Insurance Premium
FHA loans. Funding fee that can be financed.
What is the late fee on a FHA loan?
4% of the P&I only
How do you compute the maximum mortgage amount using the front-end DTI for FHA & Conventional?
Monthly Gross Income x Front Ratio = Max PITI
How do you compute the maximum mortgage amount using the back-end DTI for FHA & Conventional?
Monthly Gross Income x Back Ratio - Debt = Max PITI
