[Greg]

Many brokers are up against Bankers and Some Brokers who offer FHA. This is a brief overview I will continue to expand on. FHA loans are not credit score driven. You can have any score or no score. They accept most all forms of gifts and if no credit exists or no positive credit shows on a borrowers report they accept Alternate Letters Of Credit. (Credit Reference Letters) For example: Utility Bills, Insurance, and Cell Phones

As of today the parameters are 97% LTV on Purchase or Rate and Term Refinances.

95% on Cash Out refinances. - edited late but effective 10/05

They have a streamline refinance where an appraisal may not be required for existing FHA customers.

Product terms are 1 yr arm, 3/1 Arm, 5/1 Arm, 15yr Fixed, and 30 Yr Fixed.
Most offer a 1 yr buy down and a 2/1 buy down. So say your rate is 6.00 and you do a 2/1 buy down then the first year is 4% and second is 5% the next 28 or 13 years is 6% fixed.

FHA allows a seller contribution of 6% towards closing costs.

2 years out of bk and 3 years out of foreclosure. Some cases exceptions are considered.

Typically bills opened >24 months ago and less than $250.00 can be ignored. We ignore any medical in nearly all cases as well.

The 3% down payment can be a non-profit down payment assistance program that could be used as strictly a paper transaction because they wire money to title at closing and retract it after funding.

Now here is an example:

Last Month I had a customer with well over 45 collections and a 465 mid score. I got them 6.25% fixed with 0 down and they walked into closing with only their ids required.

Now for the negatives....

FHA used to be critical about the condition of the home. They have rehab loans (203k) but not many loan officers can do them. 200 amp electric, no peeling paint, handrails on stairways, steps leading off porches just to name a few. - edited read on they are not anymore. use my post to give to a realtor who does not know if needed.


But... In 2006 we expect 100% financing and a standard 1004 effective