Steve Jacobson

Try Our Property Search

Get Property Alerts

Read Our Blog

What's Your Home's Worth

FHA Quick Reference Guide

fha hud

Need a Quick Reference Guide for FHA Loans?

Here you go!

FHA Down Payment and Seller Concessions

  • 3.5% down

  • A relative can either GIVE the money to the borrower or LEND the money to the borrower

  • 6% seller concessions are allowed

FHA Declining Market Restrictions

  • FHA does NOT have declining market restrictions

FHA Borrower Eligibility

  • NOT limited to first time homebuyers

  • NO income limitations

  • Non-occupying co-borrowers are allowed (occupying borrower does not need any income to qualify)

FHA Occupancy Requirements

  • Primary residences for maximum financing

  • 2, 3, and 4 units properties are allowed, as long as one unit is occupied by the borrower

  • Two FHA loans to the same borrower are OK, but they need 25% equity in the first property

FHA Maximum Loan Size

  • Varies by county

  • The maximum loan size is $406,250 in Metro-Denver counties; Boulder County is $460,000

  • Loan size is higher for 2, 3, and 4 family units

FHA Credit Requirements

  • Each lender has their own minimum credit score – typically 640

  • Non-traditional credit is OK (need 3 trade lines verified for the past 12 months)

  • Bankruptcy – Chapter 7 is 2 years from the discharge date, Chapter 13 is 1 year of timely payments

  • Foreclosure – 3 years from the recording date of the Public Trustee’s Deed

  • Short Sales – no waiting period if the mortgage was not delinquent at the time of the short sale, 3 years if the mortgage was delinquent – (other restrictions may apply – call us for details)

  • Collection accounts do NOT have to be paid

FHA Mortgage Insurance

  • 1% up-front mortgage insurance premium is required, but it can be financed into the loan

  • Monthly mortgage insurance premium is based on a 0.90% annual rate (for most FHA loans)

Appraisals

  • They are NOT any more restrictive than conventional appraisals (safety issues must be addressed)

If you would like to see how this loan program can work for you, please either EMAIL me here or if you just have questions or need more detailed information about the FHA process, please call me at:

303-898-9000