FHA Loans

What Buyers Need to Know

• Low Down Payment, 3.5% down payment
• First timer status OR Income is not required for FHA 1st mortgage. No seller second or private institutional second is allowed unless the combined loan amounts and total Loan to Value is within FHA loan limits.
• 100% Gift is allowed for down payment and closing costs. 401K loans are not counted in qualifying; up to 50% can be borrowed from your own 401K (depends on your current employers).
• Co-mortgagors can be added for qualifying strength, using blended ratios.
• Automated approval process allows for flexibility in ratios: 31% housing debt, and 43% overall monthly debt to income ratios. However, FHA underwriter has the flexibility in exceeding those ratios.
• Loan Amount Limits in Santa Clara County:
  $625,500 for single resident
  $800,775 for 2 units (duplex)
  $967,950 for 3 units (triplex)
  $1,202,925 for 4 units (four plex)
  • One of the multiple units has to be owner occupied.

Combined with current low interest rates and declined home values, FHA offers an attractive financial tool for you to invest in your future and make your dream a reality. Please contact me at 408.835.7743 or alan@i2realty.com if you have questions regarding FHA loans.