Should have a history of paying the bills on time and you do not have an FHA mortgage loan.
GRACE PERIOD AFTER A FORECLOSURE
If you have had a foreclosure, you will need to wait a minimum of three years to qualify for a FHA Loan. In addition, your name needs to be removed from the CAVIRS database in order to become eligible.
INCOME CAP AND REQUIREMENTS
There is no income cap for obtaining a FHA loan.
Your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties.
DOWN PAYMENT ASSISTANCE
You can pay 100% of the down payment with grants from family, relatives, or authorized organizations.
The current loan limits for Santa Cruz County, Arizona is $271,050 for single family, $347,000 for a Duplex, $419,425 for a Tri-plex, and $521,250 for a Four-plex. Look up FHA Loan Limits for Arizona.
FHA MORTGAGE INSURANCE PREMIUMS (MIP)
Effective June 2013, new borrowers in the FHA program must pay mortgage insurance throughout the life of their loans, whether it’s a 15-year or 30-year note.
MONTHLY INSURANCE RATE
Effective January 26, 2015, the monthly insurance rate is .85%.
UPFRONT MORTGAGE INSURANCE
The upfront mortgage insurance premium, which is financed as part of the loan, is currently at 1.75%.
LOWER CREDIT SCORES
FHA requires lenders to manually underwrite loans in cases in which borrowers have credit scores lower than 620 and total debt-to-income ratios higher than 43 percent. In these instances, lender must also document any factors that support approving the loan.
The individual obtaining the loan must also have the intent to occupy the single family home. However the following exception may apply with FHA approval, referred to as a kiddie condo in the real estate industry. The parent and the child of age would be able to apply for the FHA loan.