FHA Fixed Rate Loan

Description of Program 
Federal Housing Administration (FHA) 203 (b) Fixed-Rate Loans are administered under government sponsored programs, which allow financing up to 97 percent of the home loan, minimal down payments and lenient qualifying guidelines. The program works well for first time homebuyers -- recent college graduates, newlyweds, or people who are still trying to complete their education. It also allows individuals to qualify for a FHA loan whose credit has been marred by bankruptcy or foreclosure.
 
Down Payment
The minimum down payment is determined by the acquisition price, which is the sum of the sales price plus the closing costs. Your lender can assist you with the calculations. 

Gift Funds
The 203(b) home loan is also the only loan in which 100 percent of the closing costs can be a gift from a relative, non-profit or government agency. Gift funds can be used for down payment, closing costs, prepaids, and/or buydowns. Please note, gift must come from an approved source.
 
Eligible Properties
Must be owner occupied, 1-4 family houses, FHA approved condos, or FHA approved PUDs. 

Lending Limits
    Franklin and Delaware counties - 1 family $233,700, 2 family $263,220, 
                                                    3 family, $319,800, 4 family $369,000 

Underwriting Ratios
 Housing Ratio: 29% of gross monthly income
 Debt Ratio: 41% of gross monthly income (No longer include child care as a debt) 

Credit Counseling - None required. 

Mortgage Insurance
Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. It's required for borrowers making a downpayment of less than 20 percent. FHA mortgage insurance is called MIP and its up-front expense on a house is 1.50 percent of the sale price, which can be financed. There is also a monthly fee of 0.5 percent added to the payment.  

Geographic Restrictions - None

Contact:  FHA.com at 1-866-363-7907, assistance@fha.com or call an FHA mortgage loan expert in your area.