Understanding Your FHA Options

FHA Mortgage

An FHA mortgage provides homeowners with a fixed and adjustable-rate program; the downpayment or closing costs on the property may be a gift or a 401K loan. When applying for an FHA mortgage, there are no income limits, a credit score can be as low as 500, and it is not limited to first-time homebuyers.

Additional details to know about an FHA Mortgage include:

• A 6% Seller Concession is allowed
• Grants are also allowed
• Foreclosure (or short sale) is okay after three years of discharge
• Bankruptcy is okay after two years from the day of the discharge
• 1-4 family properties are okay (condos are okay, too, if approved)
• Flexible ratios are involved
• 203K loans are available

FHA - NHF Sapphire Program

For low-to-moderate income homebuyers, the FHA - NHF Sapphire Program is available. This grant program helps to make a down payment and/or closing costs much easier since it provides 3.00% or 4.50% off the first mortgage total loan amount so that it’s possible to make that payment.

Unlike a standard FHA, some of the program’s basic requirements include but are not limited to:

• 620 minimum FICO, DTI (up to 50%)
• Income limits: 115%of Area Median Income
• The borrower must occupy the property as the primary residence
• A minimum of one borrower must have Homebuyer Counseling, and more

As for some of the benefits of the FHA - NHF Sapphire Program, members can look forward to:

• Seller credit of 6% is allowed
• The borrower(s) is not required to be a first-time homebuyer
• No repayment of the DPA Gran is required
• The grant can be used for the down payment and/or closing costs

FHA Alternative

Another option for those eligible for an FHA loan is the FHA Alternative loan. Thanks to Freddie Mac Home Possible® and Home Possible Advantage Freddie Mac Home Possible and Home Possible Advantage, the FHA Alternative loan offers low-to-moderate-income borrowers and first-time homebuyers a flexible source of funds, as well as low down payments.

Additional details to know about an FHA Alternative loan include:

• The borrow’s funds are not required for the down payment on a 1-unit residence
• The borrowers are not required to be first-time homebuyers
• A homeownership educations course is only necessary for first-time homebuyers
• 1-4 unit primary residence
• As little as 3% down payment for fixed-rate; 1-unit purchase or rate/term refinance
• As little as 5% down payment for ARMs or 2-4 unit purchase or rate/term refinance

Residential and Commercial Loans in New York

Family-owned and operated Superior Mortgage Co., Inc. has been serving the Hudson Valley for over 30 years, specializing in residential and commercial loans. If you’re purchasing a home or refinancing your current home, or you need a home equity loan (even if you have credit problems), call us at (845) 928-2845 — we look forward to helping you!