| FHA Loans
The National Housing Act of 1934 established the Federal Housing Administration (FHA) as a part of the Dept. of Housing & Urban Development. Low down payment requirements and liberal underwriting guidelines have made their loans attractive to many buyers. FHA mortgages have 30 or 15 year terms and are assumable.
MAXIMUM LOAN AMOUNT
| Single Family |
$271,050 |
| Duplex |
$347,000 |
| Triplex |
$419,425 |
| Four Plex |
$521,250 |
QUALIFYING RATIOS
 31% (housing) and 43% (total debt) of gross monthly income
33% (housing) and 45% (total debt) for new homes
Mortgage insurance is financed.
Cash investment from borrower must be 3.5% of sales price but can be a gift from a blood relative.
Seller contribution is limited 6%.
VA Loans
For VA home loan purposes, a veteran is a person who has served in the military on active duty for at least 181 days (90 days wartime) or has six years of service in the reserves/national guard and has not been dishonorably discharged.
VA funding fee is financed
Total debt to income ratio is 41%, however, extenuating circumstances may allow Lender to exceed ratio
Seller contribution is limited to 4%
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