FHA Loan Program Flashcards
What is a FHA Loan Program
FHA Loan is Mortgage Loans that are insured by the Federal Goverment Housing Administration (FHA) and issued by the FHAapproved Lenders.
FHA is part of HUD (US Department of Housing and Urban Development)
What is the Qualifying Debit to Income Ratios (DTI) for an FHA Loan?
31%/43%
Qualifying Ratios for a FHA Loan debt-to-Income ratios (DTI) conforming DTI ratios are 31% for housing and 43% for total debt ratio.
31/43
What is the qualifying/down payment minimum Investment for purchase for an FHA Loan?
3.5% 580 Credit Score and up
10% 579-500 Credit Score
What is the seller’s allowable concession on a Conventional Loan?
6%
What is the late fee for an FHA Loan?
4% P&I
How many days must an occupant certify they will occupy the property?
60 Days/Live in property for 1 Year
Does an FHA Loan use an approved appraiser?
YES
What two types of mortgage insurance premiums does the FHA Program Loan use?
Upfront Mortgage Insurance Premiums (UFMIP)
Monthly Mortgage Insurance Premiums (MIP)
How much is the upfront MIP for FHA Loan Program?
1.75% Upfront MIP for a 15- and 30-year purchase and refinance transactions
How much does the FHA Loan Program insure the Mortgage Loan?
100%
How long will MIP last if the LTV is -90% when the loan starts?
For the life of the loan
How long will MIP last if the LTV is +90% when the loan starts?
11 Years
For purchased using a FHA Loan Program what must qulifiacation have?
Must be ownwer occupied
one to four units
residential
Is it ok for down payments to come a gift fund
Yes
Is the FHA Loan assumable?
Yes
