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FHA Loan Requirements in 2023


Important FHA Guidelines for Borrowers


The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes in the United States and its territories. It is the largest insurer of residential mortgages in the world, insuring tens of millions of properties since 1934 when it was created.

  • FICO® score at least 580 = 3.5% down payment.

  • FICO® score between 500 and 579 = 10% down payment.

  • MIP (Mortgage Insurance Premium ) is required.

  • Debt-to-Income Ratio < 43%.

  • The home must be the borrower's primary residence.

  • Borrower must have steady income and proof of employment.

An FHA Loan is a mortgage that's insured by the Federal Housing Administration. They allow borrowers to finance homes with down payments as low as 3.5% and are especially popular with first-time homebuyers.

FHA loans are a good option for first-time homebuyers who may not have saved enough for a large down payment. Even borrowers who have suffered from bankruptcy or foreclosures may qualify for an FHA-backed mortgage.

Quick Update >>>

The Federal Housing Administration (FHA) has just raised its loan limit by 12% to a maximum amount of $472,030 in most areas. In certain high-cost areas, it's $1,089,300. Limits will take effect in 2023.

This means your buyers can take advantage of FHA program benefits, including:

  • Low down payment options

  • Lower total cash-to-close requirements with gift or seller contributions

  • Ability to combine purchase and rehab financing

In some lower-cost areas or those with higher costs of construction, limits will vary.

If you or your clients have any questions about FHA programs or limits in our area, please reach out.We are glad to help!


 

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