Federal Housing Administration (FHA)
FEDERAL HOUSING ADMINISTRATION (FHA) MORTGAGE INSURANCE PROGRAM
Brief description: FHA insurance program provides mortgage insurance for homebuyers, allowing an alternative to conventional loan products that often require large down payments. FHA loans have small down payment requirements and partner well with most downpayment assistance, MBOH regular bond and set-aside loan programs.
Borrower Eligibility Criteria:
Income limits
First-time homebuyer(s); waived for targeted areas.
Home must be primary residence for the life of the loan.
No asset limitations.
Property Criteria:
Single family home, townhouse, detitled manufactured home on permanent foundation or FHA-approved condo unit (MBOH will purchase loans on up to 25% of units in a project).
Limit of 15% for business use.
Land limited to 35% of value of property on new construction that has private water or sewer.
Maximum parcel size of 40 acres, with no subdivision of land possible.
Loan Criteria:
30-year fixed rate loan
IRS recapture potential
Buy existing or build new home
Hazard insurance $1,000 deductible all peril; escrow for tax and insurance
Underwriting Criteria:
Per FHA guidelines
Need any multi-lot/repair issues on appraisal addressed before closing
Down Payment Sources:
Must be FHA approved sources only-approved non-profits require at least 3.5% from borrower, local governments and a HUD-approved non-profit instrumentality of government can provide 100% financing
MBOH pays a portion of closing cost for the borrower.
Mortgage Insurance Information:
Requires FHA coverage
Lender Reservation and Loan Info:
MBOH regulates points and fees that can be charged. Consult Board staff with any questions.
Reservations are valid for 60 days for existing homes and 180 days for new construction
A 0.25% fee charged for extensions, 0.50% for cancellation
Need any multi-lot/repair issues on appraisal addressed before closing Single family home, townhouse, detitled manufactured home on permanent foundation or FHA-approved condo unit (MBOH will purchase loans on up to 25% of units in a project).
Reservation Process:
PREFER
Input on Lender On Line web based reservation system
Fax Borrow Stat Sheet and Homebuyer Education Certificate
OR
Fax reservation to MBOH including:
Reservation cover sheet and required documentation listed
This is a summary of the MBOH program only. For a complete copy of the terms and conditions see Mortgage Purchase and Servicing Guide or Terms and Conditions for Whole Loans (December 23, 2009).
