FHA Loans Flashcards
(29 cards)
The Federal Housing Administration (FHA) is a government agency within the ______________________________.
Department of Housing and Urban Development (HUD).
The FHA provides _____% insurance to its approved lenders. The lenders recover any losses experienced during a foreclosure or short sale because the FHA makes up the difference to the lenders.
100%
FHA loans have a required _______________ and a _________________ regardless of the down payment amount.
Up Front Mortgage Insurance Premium (UFMIP) ; Monthly Insurance Premium (MIP)
Who sets the interest rate?
The lenders set the interest rate, not FHA or HUD.
Are FHA loans assumable or unassumable?
FHA loans are assumable; there is no due-on-sale clause.
What is the late fee for an FHA loan?
4% of P & I Only
What must the FHA borrow have?
Valid Social Security number and must be eligible to work in the United States.
What is the minimum down payment with a credit score of 580 or above?
3.5% down payment
If the credit score is between 500-579, the minimum down payment is what?
10%
What kind of appraiser does the FHA require?
FHA loans require the use of an FHA-approved appraiser.
What doesn’t an FHA Streamline Refinance require?
An FHA Streamline Refinance doesn’t require an appraisal, or income and credit verification.
What can the seller contribute with an FHA loan?
In a FHA loan, Sellers may contribute up to 6% of the lesser of the property’s sales price or the appraised value toward closing costs.
What is the FHA Loan Initial Premium amount?
In an FHA loan Initial premium—upfront mortgage insurance premium (UFMIP) for a 15- and 30-year purchase and refinance transactions for cases assigned on or after April 9, 2012 - 1.75% of the loan amount.
Credit Score Requirement - borrowers with a minimum score of ________ are eligible for maximum financing
580 or above
Credit Score Requirement - borrowers with a minimum score of _________ will be eligible for a loan with up to 90% LTV
500 to 579
Credit Score Requirement - borrowers with a minimum score ________ are not eligible for FHA financing.
under 500
The Upfront Mortgage Insurance Premium is charged on all FHA loans and paid to ____ after the _________.
HUD ; loan closing
FHA requires ______ ownership before resale.
three (3) months
FHA loans have a maximum loan amount in each ______, which does not include the __________________.
county; Up-Front Mortgage Insurance Premium.
Borrowers with FHA loans must: Establish occupancy of the property as their principal residence within ___ days of signing a security instrument and live in the house for at least _______.
60; one year.
FHA limits transactions as follows:
- Resales occurring 90 days or less following acquisition will not be eligible for an FHA mortgage.
- Resales occurring 91 to 180 days following acquisition will be eligible for an FHA loan provided an additional independent appraisal is
obtained. - Resales occurring 90 days to one year following acquisition will be subject to additional review to establish value.
What is a 203(b) Home Mortgage?
203(b) Home Mortgages: FHA’s primary program, 203(b) is a fixed-rate program used to purchase or refinance one-to-four-unit family dwellings.
What is a 234(c) Condominium Mortgages?
234(c) Condominium Mortgages: An FHA condo loan, also known as Section 234(c), is a mortgage insured by the FHA, which is designed to assist people who are getting into a new condo.
What is a 203(k) Rehab Mortgage?
203(k) Rehab Mortgage: Section 203(k) insurance enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.
