FHA Loan Features

Lake Tahoe - California
  • Down payments as low as 3.5% on 1-2 units.
  • Gift Funds: Family members may pay all of the borrower’s required down payment, closing costs, prepaid expenses and discount points
  • Loan limits in San Diego County: 1 unit $649,750,  2 units $831,800,  3 units $1,005,450,  4 units $$1,249,550  Contact us for your county limit
  • Non-Occupant Co-borrower allowed to assist you in qualifying
  • Fixed and adjustable-rate mortgages available
  • Cash-out up to 85% loan to value

FHA mortgages are a great option for borrowers that need a high loan to value (LTV) loan. FHA also has more relaxed credit guidelines compared to conventional loans with a high ltv. Credit scores down to 640 may work on a FHA loan, where as a 95% ltv conventional loan requires at least a 680 mid score. FHA also has shorter seasoning requirements for borrowers that have had a previous BK, short sale or foreclosure. FHA collects an Up Front Mtg. Ins. Premium of 1.75% of your loan balance, which is normally financed on top of your base loan amount. Additionally, there is a monthly premium charged too.

The good news is, because FHA and VA interest rates are generally better/lower than high ltv conventional loans, your IPM representative will show you that by taking a rate equal to a conventional loan, the lender will give you a rebate/credit that will pay the UFMIP for you and possibly a lot of your closing costs! Not financing the UFMIP helps keep you payment lower. That then leaves only the monthly mortgage insurance premium, which is comparable to 97% ltv conventional PMI cost/monthly expense. On a FHA loan, the monthly MI expense will not go away once the loan is paid down to 80% ltv, as is the case with a conventional loan, so you will have to refinance or sell at some point to get rid of it.

Base Loan Amount LTV Annual MIP
< = $649,750 < = 95.00% 1.30%
< = $649,750 >95.00% 1.35%
Above $649,750 < = 95.00% 1.50%
Above $649,750 >95.00% 1.55%
Monthly MI payment is Loan Amount X Annual MIP and divided by 12 months. E.G., $300k X 1.35% / 12 = $337.50 per month.

Most Condo/PUD projects are not FHA approved. Leaving this financing option best for buyers of a SFR.  Contact IPM with your Condo Project info to verify if it allows FHA financing

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