FHA MORTGAGE

An FHA Mortgage (Federal Housing Administration) is a loan that is guaranteed by the Federal Government. As of 05/01/2011, the minimum FICO credit score required for an FHA loan with our underwriter’s is 640. This is subject to change (increase or decrease) so please check with us frequently. These loans typically require that your total house payment (PITI) not exceed 30% of your gross income. Your total debt to income ratio (house payment plus your monthly debt payments appearing on your credit report) should not exceed 42% of your gross monthly income. In some instances, depending on investors and variable factors, these ratios can exceed 30/42 but keeping your ratios within these limits makes it easier to grant approval.

FHA loans require a minimum down payment of 3.5% of the loan amount.
FHA loans require an up-front mortgage insurance premium to be paid (can be financed) as an FHA insurance premium. The initial (up-front) mortgage insurance premium is 1% of the base loan amount.
In addition to the up-front mortgage insurance, borrowers will be required to pay monthly mortgage insurance based on the following factors:

Loans amortized > 30 years with an LTV above 95% = loan amt x 1.15% / 12 = monthly amt.
Loans amortized > 30 years with an LTV < 95% = loan amt x 1.10% / 12 = monthly amt.
Loans amortized < 15 years with an LTV > 90% = loan amt x .50% / 12= monthly amt.
Loans amortized < 15 years with an LTV < 90% = loan amt. x .25% /12= monthly amt.

FHA loans also have maximum loan amounts. Currently, the Utah County FHA loan limit is capped at $323,750 for a single family property. For the maximum loan amounts in your county, visit:

https://entp.hud.gov/idapp/html/hicostlook.cfm

*There are many options on interest rates (i.e fixed, arm, buy down, etc.).  Please see additional options or contact your loan officer.   

*Closing Costs will also apply.  Please contact your loan officer for an explanation and estimate.