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      New 1.5% Down FHA Mortgages Are Now Available

      One of the biggest challenges to new homebuyers is often coming up with the down payment. The FHA is one of the most popular mortgage programs for 1st time buyers because if features a minimum of 3.5% down payment requirement and can be more attractive for buyers that may not have perfect credit. This program even allows for gift funds to be used for part or all of the down payment.

      As of 2/7/18 there is a lender that is now offering a gift at the Closing for 2% of the minimum 3.5% down to home buyers making it possible for a qualified client to purchase a home with only 1.5% down. This program will feature a rate that is typically a little higher than their Standard FHA with no down payment gift for about what people are paying for a rental deposit and rental so that they can buy a home.

      Here’s an example based on what was offered on 2/7/18 with a 680 credit score:

      Interest Rate 5.125% 30 Yr Fixed APR 6.389%
      Purchase Price $210,000
      Base Loan Amount $202,650
      Closing Costs $3,781
      Prepaid Escrows $3,093
      Total $6,874 

      Seller Credit To Buyer Fees $6,800
      Lender Gift $4,200
      Base Loan Amount $202,650
      Financed MIP $3,546
      Actual Loan Amount $206,196

      First Mortgage (P & I) 1,122.71
      Home Owners Insurance 50.00
      Real Estate Taxes 191.67
      Mortgage Insurance 143.54
      Home Owners Dues 0.00
      TOTAL PAYMENT $1,507.92