FHA (Federal Housing Administration) loans -

FHA (Federal Housing Administration) loans are attractive to home buyers in NH and MA because FHA loans offer flexibility

Limitations

Because FHA loans are not limited to first time home buyers, more people qualify.
Since there are no income limits with FHA loans, more buyers are eligible.
Loan Limits Apply county by county for all States. This link brings you to FHA’s site which shows all loan limits.
See Chart below for NH loan limits.
Credit scores down to 500 can potentially be approved!

Down Payment & Required Cash

Required down payment is 3.5% of the sales price.
Seller can pay all closing costs and prepaid expenses associated with a purchase therefore reducing the buyer’s upfront cash outlay
- Seller paid closing costs are called “seller concessions”
- Seller concessions must be negotiated into the contract
- Seller concessions are limited to the lesser of actual expenses or 6% (whichever is less).
  Note: typical closing costs run about 4% of the sales price
Down Payment Assistance
- FHA does allow for down payment assistance from different entities
- NH Housing has a great down payment assistance program
- Other down payment assistance programs are available. An independent mortgage broker can help you find the program that’s best for you:
  - Rosebud down payment assistance
  - Axis down payment assistance
  - GOAT down payment assistance
  - Empowered down payment assistance

FHA Mortgage Insurance

Upfront MIP (Mortgage Insurance Premium) is based on loan term, case assignment date, loan amount and down payment
- for most 30-year fixed rate loans, the mortgage insurance premium (MIP) is a 1.75% upfront fee (can be financed into the loan)
FHA also has an annual MIP
- for most 30-year fixed rate loans with maximum financing the annual premium is .55%
- for borrowers with a 5% or more down payment the annual premium is reduced to .50%
- the annual premium is paid monthly and calculated as follows:
  base loan amount X the premium (55%) divided by 12 = monthly FHA premium

Qualifying for an FHA loan

Minimum of 500 credit score required for FHA loans
FHA loans are put through automated underwriting.
Automated underwriting will either have an “Accept” or “Refer” finding.
If the loan is approved “Accept” then the automated findings will dictate underwriting requirements
For loans that are Refer through automated underwriting, a manual underwrite is required and you can expect more/additional requirements
Borrowers without a credit score can be approved through a manual underwriting process if the borrowers meet non-traditional credit requirements
FHA can be combined with NH Housing Finance Authority (NHHFA)
- Home First program for borrowers with incomes within income limits get lower rates
- Home Preferred has a higher income limit
FHA loans are available for 1 – 4 unit owner occupied properties
Complete FHA Guidelines Available via this link

FHA loans for condominiums

FHA loans can be used to purchase FHA approved condos
If your condo is not FHA approved, Renee Duval can assist you in submitting your condo to FHA for approval

FHA renovation and using FHA for new construction

renovation funds are available thru the FHA 203K standard programs.
All required docs and more details can be obtained by contacting Renee Duval
click here for more info on FHA renovation/203K loans.
FHA new construction with less than 10% down requires the builder to provide additional documentation

Contact us today for more information about FHA loan programs

Bookend Lending is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency.

FHA Loan Limits in NH

Most Counties in NH the max FHA loan for a single family home is $498,257
For Strafford and Rockingham Counties the max FHA loan is $862,500
Note: 2, 3 and 4-family homes have higher sales price limits

FHA (Federal Housing Administration) loans