FHA World - 2016 FHA Seller Concessions
FHA allow 3.50% down payment for a purchase of a home. FHA also allows for a 6% seller's concessions. So, if you want to buy a home for a $100,000.00 you will need $3,500.00 for the down payment. The down payment can be a gift from a family member. Your closing cost can be rolled into your loan. So, the only cash you will need to buy a $100,000.00 is around $3,500.00.
The seller must agree to a seller's concessions and in the above case you are allowed a concession of up to $6,000.00 for closing cost.
FHA World - Seller Concessions in Writing
When you find a property you want to make an offer on you must include the seller's concession in the sales contract. You can write it in two ways as a dollar amount (seller will pay $6,000.00 for closing cost) or you can write it in a percentage amount (seller will pay up to 6% of the purchase price for closing cost).
FHA World - Seller Concessions 2016
Generally, a borrower who has made timely payments for the last 12 months serves as a guide and demonstrates their willingness to repay future credit obligations. New FHA policy changes require minimum FICO credit score to be 580 for 96.5% down payment. These Fico credit score requirements went into effect in the spring 2010. However, most individual lenders will still require credit scores higher than 640.
A perfect credit score is not needed for an FHA loan approval. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for a FHA loan than a for a conventional loan. Sometimes score down to 500 are accepted if there are compensating factors that offset the credit risk.
Credit score below 580 require a larger (10)% down payment on a purchase. On a refinance, the maximum loan-to-value on a rate and term refinance is 80% of the property value. Case by case on a cash-out refinance.
Serving Florida2016 FHA Seller Concessions
FHA loan requirements new borrowers with less than a 580 credit score will be required to put down at least 10%
FHA requires a minimum credit score of 500 to buy a home or refinance
Chapter 7 Bankruptcy at least two years must have elapsed since the discharge date
Foreclosure must have been resolved for at least 3 years
Government loan: Seasoning is determined by the date the claim was paid
Loans other than Government: Seasoning is determined by the date of sale the lender sold the property
FHA guidelines requires three year past from the date of sale of the property
What documentation will I need?