Things to consider when buying a home using FHA loans.

Maximum loan amount for Dallas, Kaufman, Collin, Denton, Rockwall and Hunt Counties is $200,160 (Sales price of 204,760 with the 2.25 downpayment)

Minimum Down Payment is 2.250% Buyer must make a 3% investment unless down payment is paid as a Grant/Charity (DAP) contribution.

Seller can contribute up to 6% of the Sales Price without using a Charity (DAP) contribution.

No Termite Inspection Required.

No Non-Allowables required for the seller.

FHA is now using the standard Fannie Mae appraisal form- No more VC sheets!

Any contributions that the seller is contributing should be included in 12A1B on your contract UNLESS they are using a Down Payment Assistance Program (DAP).

If any monies are being paid as a contribution towards buyer’s down payment, DO NOT include those fees in 12A1B . Instead, add that to your “Special Provisions” #11. You will need to verify with your mortgage lender the amount of the contribution to be specified. Special Provisions to read “Seller to contribute $____ towards a Down Payment Assistance Program”.

FHA Mortgage Insurance is paid upfront (1.50%) rolled into the mortgage amount and .5% paid monthly in the payment. The .5% can be cancelled once the buyer has a 78% LTV and a minimum of 5 years (which ever is the later) has been paid towards the mortgage and the mortgage history has been satisfactory.

A 30 year Fixed Rate mortgage for a Single Family Residence is a Section 203B. A Condo has a 234C Section (the section is a part of The Third Party Financing Addendum #C for FHA).

A Condo does not require upfront FHA Insurance added to the mortgage and a survey is not required. A Condo must meet the FHA guidelines of no less than 51% Owner Occupied and be an FHA Approved complex.

Make sure the executed date is on the contract.