FHA Mortgage programs!
The Federal Housing Administration is the largest mortgage insurer in the world! You get an FHA mortgage through an approved lender. GVC Mortgage is a Direct FHA Mortgage Lender and we are happy to discuss how you can qualify.
The 12 FHA programs that are available to lenders and insured by FHA.
#1. Basic Home Mortgage Loan 203(b)
- This is the most common FHA mortgage loan program as it allows you to purchase or refinance your principal residence. This mortgage is funded by a lender and then insured by HUD. You may be thinking; how do I get this mortgage? To start, there are FHA credit qualification standards. You are eligible for approximately 96.5% financing. And you can finance the upfront mortgage insurance due to FHA. The property you want to purchase must be a 1-4-unit structure. Last, your mortgage must be under a certain FHA loan amount. Now we are happy to guide you through the steps of qualifying for an FHA mortgage. So, call us anytime at (419) 350-8420.
Here are few FHA mortgage thoughts to ponder:
- First, the seller can contribute 6% of the purchase price towards closing costs. These are called seller concessions.
- Second, since a lender will loan 96.5% the down payment the remainder (the down payment) can be gift funds. According to FHA (HUD.gov), “in order for funds to be considered a gift, there must be no expected or implied repayment of the funds to the donor by the borrower.” Who is allowed to give you gift funds by FHA standards?
- The borrower’s relative
- The borrower’s employer or labor union
- A close friend with a clearly defined and documented interest in the borrower
- A charitable organization
- A governmental agency or public entity that has a program providing home ownership assistance to low and moderate income family or first-time homebuyers.
- Who can NOT be a gift donor?
- The seller
- The real estate agent or broker
- The builder or
- An associated entity
- According to HUD section 4155.1 5.B.4.e “as a general rule, FHA is not concerned with how a donor obtains gift funds, provided that the funds are not derived in any manner from a party to the sales transaction. Donors may borrow gift funds from any other acceptable source, provided the mortgage borrowers are not obligors to any note to secure money borrowed to the gift.
- The mortgage underwriter will verify that all gift rules are followed based on HUD section 4155.1.