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Hello thank you for joining us today for this short video brought to you by FHA mortgage source today we're going to talk a little about the latest changes for 2016 we're going to highlight some basic requirements of FHA what homebuyers want to know, and we can highlight some important changes that have happened if you have questions we service buyers in all 50 states you can reach out to us by calling 9302 6/0 6/0 or visiting FHA mortgage source com first just a quick rundown on the basics of the FHA program the program requires a minimum 3.5% down payment is required that's the big draw to the program is many first-time homebuyers especially are looking for home buying solutions that do not require large down payments and FHA certainly meets that need homebuyers are again required to put down a minimum of 3.5% but that can come in the form as a gift from the family member in addition to that buyers are permitted to put down more money if they choose to closing costs for the FHA loans it can be paid by the home seller up to six percent which is generally more than enough to cover all the buyers closing cost and prepaid escrow requirements for taxes and homeowners insurance FHA like all government loan programs it does have a one-time mortgage insurance fee that can be rolled into the loan for FHA for 2016 that's 1.75 percent of the loan amount that one-time, and it's called depending on the program the government program it has different names, but it's basically the same thing it can be called a guarantee fee or a funding fee if you're talking about the USDA or VA program, but it's all basically the same thing it's a one-time fee that is rolled into the borrowers loan they can also pay that out-of-pocket though if they choose FHA of course is government backed government insured program no early payoff penalties or prepayment penalties homebuyers can pay off their loan any time they choose in most cases a 620 credit score will be required for the maximum 96.5% financing borrowers that are putting down 5% or maybe a 10% down payment will have more flexibility in regard to the credit scores those borrowers that do have a 5 or 10% down payment may be able to obtain approval with a 580 or 600 credit score do keep in mind that the credit score requirements alone does not guarantee the loan approval as there will be additional stipulations in place for any applicants that have had a serious financial hardship like a bankruptcy or foreclosure home foreclosure or short sale there will be additional requirements in place in regard to waiting time regardless of how high your credit score may be FHA loans can be used for any single-family hometown home or approved condominium as long as the home meets all the safety standards for HUD the home basically is in a move-in condition does not is the homes are required to be perfect rarely or any homes perfect, but they do need to meet just basic safety standards in order to be able to get financing just a...
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