NorthEast Financial FHA Overview

FHA Facts:

  1. All FHA Purchases Require a minimum of a 3.5% loan down-payment.
  2. FHA borrowers have to have a minimum credit score of 580 but a 600+ is preferred.
  3. 203K loan Program allows a home buyer to take out additional funds at closing in order to rehab a property.
  4. 203K loans can be used to purchase and rehab 1-4 unit properties, condos, and Mixed Use Developments
  5. All FHA Eligible Properties must be owner occupied
  6. 203K loans can be used to transition a single family into a multi-family or vice versa
  7. 203K loans can be used to add a Garage to a property or to replace older household systems with Energy Efficient ones.
  8. The Appraisal Process with FHA loans is a bit more detailed – requiring appraisers to look for exposed wiring, screened roof vents, 3 layers of roofing, proper amp ability, interior/exterior chipping structural concerns, that all outlets work, that water pressure is appropriate, oven fan works, heating and air systems do not need repairs, and there are no issues with the attic/crawlspaces.  Also chipping paint is also an issue with FHA loans and will need to be repaired before the loan can be funded.

For a Free consultation on your upcoming FHA purchase or refinance please call us today.

Thank you,

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Michael Meyer
Senior Vice President of Northeast Financial
NMLS#117875
Mike@northeast-mortgage.com
860-876-0572
210 S. Main St Middletown, CT 06457

Company NMLS#117273 

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FHA Disclosure

NMLS# 117273, Northeast Financial, 860-788-7237

The principal and interest payment on a 203,500 30 year FHA fixed rate loan at 3.25% on 96.5% loan to value is 1,025.99 with 0 points due at closing.  The APR is 4.491%.  Payments include a one time upfront mortgage insurance premium (MIP) at 1.75% of the base loan amount and monthly MIP is calculated at .85% of the base loan amount.  The .85% monthly MIP is required for a specific period of time regardless of your down payment or equity in your home.  The principal, mortgage insurance, and interest payment does not include property taxes or home owner’s insurance premiums, which will result in a higher actual monthly payment.  Rates current as of 6/26/17