APPRAISALS

FHA appraisers are looking for any hazards within the home and on the property. Most commonly looked for hazards are:

• Any stairway with three or more stairs will usually require a handrail. The same goes for any raised porches, as they will most likely require a barrier to prevent falling. 

• Raised cracks (if there is a rise of 3+ inches) in the concrete of the driveway or walkway leading to the house

• Chipped and peeling paint on or within the home itself or on any exterior surfaces.

• Cracked or damaged doors or windows

• Any rotted (or otherwise in disrepair) floors or counters 

• Appraisal is with the property for 120 days from the date of the appraisal

QUALIFICATIONS

FHA Loans consider many factors when it comes to qualification. The following are some of the unique aspects of FHA Loan guidelines.

• Debt to Income Ratio maximum of 57%

• Credit scores as low as 580 qualify with 3.5% down and under 580 with 10% down

• Shorter wait times from major credit events such as Bankruptcy and Foreclosure

MORTGAGE INSURANCE

All FHA Loans have mortgage insurance to begin (as does any loan with less than 20% down) but the premium charged is the same for all borrowers and can only change based on down payment. Some important things to note about FHA Mortgage Insurance are:

• Mortgage Insurance is paid for the life of the loan unless you put 10% down, then it is paid for 11 years

• Up-Front Mortgage Insurance Premium (UFMIP) is rolled into the loan