FHA loans 2016

FHA loans 2016

November 25, 2016

buy a house with a FHA loan

FHA announced a set of policy changes to strengthen the FHA. The changes announced are the latest in a series of changes enacted in order to better position the FHA to manage its risk while continuing to support the nation’s housing market recovery.

• 580 credit score to qualify for FHA's 3.5% down payment
• Below 580 credit score 10% down payment
• 500 minimum credit score
• No credit scores are allowed

Borrowers may also be eligible for an FHA insured loan on a purchase transaction after 12 months from the completion, discharge,trustee's sale if the borrower meets the requirements for extenuating circumstances Economic Event.

Borrowers with a prior bankruptcy, foreclosure, deed-in-lieu, or short sale may be eligible for an FHA insured loan if the bankruptcy, foreclosure, deed-in-lieu, short sale was the result of a documented extenuating circumstance.

debt to income ratio to buy a house

Debt to income ratios are the calculations underwriters use to determine whether a borrower can qualify for a mortgage. They are used to determine if you have the capacity to repay your mortgage.

• FHA DTI ratio is 45%/55% with credit score above 620
• FHA DTI ratio is 31%/43% with credit score below 620

There are two calculations. The first or Front Ratio is your housing expense-to-income ratio. This is your proposed mortgage payment (principle, interest, taxes, mortgage insurance, and home owners insurance) divided by your gross monthly income.

The second or Back Ratio is your total monthly obligations-to-income ratio. This is your gross monthly payment including Mortgage PITI divided by your gross monthly income.

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FHA loan requirements - ‎FHA loan limits - ‎FHA loans - ‎FHA Streamline

Mortgage World Home Loans is an online mortgage company specializing in FHA loans for first time home buyers. To buy a house with 3.5% down payment and a minimum credit score of 580 using an FHA loan apply now.

We look forward to working with you.

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