FHA Temporary New Conforming Loan Limit  $729,750

(Update 3/21/08)

The Federal Housing Administration (FHA) is an agency within the Department of Housing and Urban Development (HUD). The Secretary of HUD is a cabinet-level post. FHA does not lend money nor does the agency construct housing. FHA insures loans that meet specific criteria, thus decreasing the risk for the lender.

Updated Benefits and Guidelines of FHA Loans

• Low Down Payment (3% ).

• No Minimum Reserve requirement.

• 100% Gift Ok.

• Loans are all assumable.

• No minimum FICO up to $417k (>$417k 600 Purchase loan).

• No citizenship required (minimum requirement is work visa).

• Non-occupant co-borrower ok.

• Seller only obligated to pay tax service fee of $115, closing costs can be paid by seller, buyer or lender.

• Seller financing concessions ok to 6% of purchase price.

• No prepayment penalty.

• All Loans require PMI insurance regardless of down payment, except the 15yr fixed,(this can be financed).

• LTV not reduced by "at risk appraisals".

• SFR, Condo, PUD, 1-4 units ok (Condos must be FHA approved).

• 30 & 15 yr fixed rate loans, 1 Yr ARMs,5/1 ,7/1 & 10/1 ARM ok.

• PMI insurance stays on loan for minimum of 5yrs regardless of ltv (thereafter only removed at borrowers request to FHA, not automatic).

• Owner occupied loans only (no second homes or investment loans for fha purchases).

• Maximum one FHA Loan per borrower.

• No Termite,Well,Septic,Roof Inspection required (unless appraisal or contract mentions problem).

• Only 51% minimum owner occupied ratio required on condos (although some require 70%,case by case).

• FHA Loans can be done concurrent with DAPs (Down Payment assistance Programs) (e.g. MCC, Silent Seconds, San Mateo County First Time Buyer Programs,etc.).

Call Roger

Private Mortgage Advisors

 (an affiliate of Wells Fargo Bank ,N.A.)

(650)796-0326      Call today for more info!