Buyer Loan Guidelines for 2011

Buyer Loan Guidelines

• Minimum down payment: 5% for Primary Residences/ investors minimum of 15%
• Co-Signers allowed in specific situations
• To avoid mortgage insurance the down payment must be greater or equal to 20% (first and second loan combination can achieve this)
• For optimal interest rate, credit must be at or above 750. Credit rates increase as credit score decreases below 750
• Gift funds allowed after borrower puts down a minimum of 5% of own funds.
• Jumbo Loans = loan amounts above $417,000 (unless in a high cost area) – rates will be higher on jumbo loans

FHA Buyer Loan Guidelines

• Minimum down payment of 3.5%
• No investors
• Co-Signers are allowed
• Gift Money
• Credit must be a minimum of 640 for market rates (options down to 580 credit score)
• Will have mortgage insurance for a minimum of 5 years, despite amount of down payment
• Upfront mortgage insurance premium = 1% (rolled into loan amount). Monthly mortgage insurance = 1.15% x Loan Amount/12
• Lending limits based on county.  Want to look your county of interest up?  http://www.hud.gov
• Anyone can do a FHA loan, no income limits, not necessary to be a first time home buyer and can only have 1 FHA loan at any given time unless you are relocating.
• If you are approved for an FHA loan, you can be eligible for the FHA 203K Loan

Buyer Loan Guidelines in 2011 for a VA Loan 

• Veterans (must be active duty for 180+ days)
• No down payment
• No investors
• No mortgage insurance
• There is a VA funding fee rolled into loan amount. First use of a VA loan = 2.15% of the loan amount. Second use = 3.3%. Do you have at least a 10% disability? Then this fee will be waived.
• Credit must be a minimum of 640
• Can have multiple VA loans based on guidelines concerning specific situations
• Must order appraisal through VA. The appraisal can take up to 10 business days, no way to rush that time frame. Once ordered by the lender, it cannot be cancelled.
• The 2011 Maximum Loan amount = 417,000 (depending on eligibility)
• VA will not allow veteran purchaser to pay certain closing fees which are referred to as “non-allowables” in your contract.

The fees that a veteran borrower can pay:

• Origination fee
• Credit report fee
• Appraisal
• Pre-paids: Proration amounts on loan, HOA, tax and insurance

Buyer loan Guidelines for 2011 Questions?   877-575-7707  or email at: Angel Realty LLC