FHA vs USDA & Recent Changes

FHA

• Allows 3.5% Gift Money for Down Payment
• Also allows Family Member Lending – Borrower Must qualify
• Allows up to 6% Seller Concessions
• Rates as Low at 5.25% / 5.638 APR – Depending on Fico and Loan Amount
• 48 Hour Underwriting/24 hour Conditions/24 hour docs – Close in 7 business days – Call for more info
• Monthly and Financed MI
• 2 years after BK 7 Discharge – OK
• Manufactured Homes – Must be FHA approved – 620 Middle Credit Score
• Also NO SCORED BORROWERS – This Program is back again.  No scored borrowers are still acceptable under FHA as long as they have no derogatory accounts on credit report.  Must provide 12 mo verifiable rental history and 3 alternative tradelines open for 12 months. 

FHA HUD Purchase $100 Down Payment

• Loan amount is based on putting just $100 Down.
• Allows up to 6% Seller Concessions (Must be negotiated on the contract)
• 620 Middle Score.

USDA

• 100% Financing – Requires no Down Payment
• No limit on seller Contributions
• 2% Funding Fee may also be financed (max 102% LTV)
• No Monthly MI
• 3 Years required from BK 7 Discharge
• Single Family Homes, town houses and approved Condo’s in eligible rural areas
• No Manufactured Homes Allowed
• Down to 620 Middle Score
• Click here for property & Income eligibility http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Update on Conventional - 5-10 Financed Properties

We now allow borrower’s with 5 to 10 Financed Properties to be able to Purchase a Second Home or Investment Property to 75% LTV and Rate/Term Refinance their already existing Second Home or Investment Property to 70% LTV as long as they have a 720 FICO or better.***

www.ahfmaustin.com

Ph. (512)663.9519