FHA Guide

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FHA Mortgage Guidelines Brookstone of America Presents http://www.mtgloanrus.com

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Credit Minimum Credit Score from 600 There are no minimum trade lines requirements. However for less than 3 trade lines the lender may ask for non traditional credits, such as insurance, utilities and or phone company credit reference letter, with no more than one 30 days late payment. All collection account(s) and judgment should be paid or on a payment agreement plan. Student loans should be current or on deferment. Bankruptcy discharge greater than or equal to 4 years FHA Streamline Refinance Credit is not a determining factor http://www.mtgloanrus.com

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Assets All assets can be gifted. All assets must be documented. No Reserves required. Down Payment assistance program accepted. Gift of Equity in Family to Family transaction. IRA or 401K can be used. FHA Streamline Refinance No Assets is documented No Cash Out http://www.mtgloanrus.com

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Income http://www.mtgloanrus.com Gross monthly income is use to qualify borrower. Self-Employed borrower, net income is use, however let your loan officer work out the net income, in most cases it is not the net that is on your tax returns. For 2 – 4 Family units Current Rental Units Lease agreement(s). 85% of gross rental income = net rental income, is added to Borrower’s gross monthly income to qualify. For 3 – 4 Family units Net rental income must equal to or greater than proposed monthly payment. FHA Streamline Refinance No Income is documented

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Down Payment http://www.mtgloanrus.com Purchase 3.5 % of Contract Price or Appraised Value which ever is lower. Refinance Cash Out 85.00% Loan to Value. FHA Streamline Refinance 97.75% Loan to Value Minimum 3.50%

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MORTGAGE INSURANCE http://www.mtgloanrus.com

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WORK SHEET http://www.mtgloanrus.com

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Closing cost http://www.mtgloanrus.com The seller can contribute up to 6% of the purchaser closing cost. Can be a Loan as long as the monthly payment is factored in. Can be a Gift from a family member. Come from IRA or 401K plan. Refinance All of your cost is financed into your loan.

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FHA Loan Limits http://www.mtgloanrus.com Any Loan Amount (LA) above $417,000 will be affected by interest rates ---------------- Mortgage Amount can be higher that these numbers with the UFMIP added to the Loan Amount ---------------- Link below to check your area loan limits. https://entp.hud.gov/idapp/html/hicostlook.cfm