A FHA mortgage is a great option for many Central KY area home-buyers. FHA gives many Americans the option to become homeowners due to the fact that they require a minimal down payment, have competitive interest rates and provide flexible underwriting guidelines.
As a result of our in house processing, underwriting and funding we control your FHA loan from start to finish. As a result, we can keep you informed every step of the way.
Benefits of the FHA Mortgage:
Low Down Payment
Flexible Debt to Income Ratio
Flexible Credit Guidelines
Competitive Interest Rate
Co–Borrowers Allowed to Help Qualify
No Pre–Payment Penalty
Basic FHA Mortgage Requirements.
What can an FHA loan be used to buy? Primary residence purchases only.
Maximum Loan Amount: $356,362 (for single family home in Fayette County, KY)
Down Payment Requirement: 3.5% of the purchase price***
Available Loan Terms: 5yr* or 7yr** ARM (Adjustable Rate Mortgage), 15 and 30 year fixed mortgage
Is Mortgage Insurance Required? Yes
Are there property Eligibility Requirements: Yes
Income Eligibility Requirements: No minimum or maximum income limits
Maximum Debt to Income Ratio: Contact us for more information
Minimum Required Credit Score: Contact us for more information
Are Seller Paid Closing Costs allowed: Yes
Are gift funds allowed? Yes
FHA Mortgage Insurance
Every homeowner that utilizes FHA financing pays FHA mortgage insurance. FHA home loans have two types of mortgage insurance.
1. Up-front Mortgage Insurance Premium (“UMIP”)
2. Monthly Mortgage Insurance (“MI”)
Each FHA mortgage has both UMIP and MI. Therefore, the actual amount paid is dependent upon a borrower’s down payment and loan term.
Up-Front Mortgage Insurance Premium (UMIP)
The FHA Up-Front Mortgage Insurance Premium is a one-time charge that is typically “financed” into a borrower’s loan amount. The premium is calculated by multiplying the FHA base loan amount by the appropriate factor. A homeowner can pay for the mortgage insurance premium out of pocket if they choose.
Monthly Mortgage Insurance (MI)
FHA Monthly Mortgage Insurance is calculated by multiplying the appropriate factor by the FHA loan amount. Currently, FHA monthly mortgage insurance payments do not ever go away naturally.
* 5/1 ARM – Has a fixed interest rate for the first 5 years, after which the rate can change once every year for the remaining life of the loan. When the rate changes, your monthly payments will increase if rates go up and decrease if rates fall.
** 7/1 ARM – Has a fixed interest rate for the first 7 years, after which the rate can change once every year for the remaining life of the loan. When the rate changes, your monthly payments will increase if rates go up and decrease if rates fall.
*** Certain restrictions apply. Not available in all areas. Please contact your PrimeLending loan officer for more details.