VA and FHA

Presented by:

David JohnstonDavid JohnstonfromGuild MortgageGuild Mortgage

FHA ProgramEmphasis

*Higher Debt Ratios *Low/No down payment

3.5%-- rumor 5% *100% Gift money OK *BKs only 2 yrs old (FHA/VA) *Seller paid closing costs 6% *Declining Markets OK *Manufactured Housing * No HVCC for Appraisals * Beats Conventional MI

MI = 41% DTI 720 FICO

FHA Basics

*Don’t have to be 1st Time Buyer*3.5% Down Payment*Need Condo approval – no PUD approval*Can do ‘spot’ approvals on condos- Feb. 1, 2010*Seller can pay all closing costs - not to exceed 6% of sales price *BKs only 2 years old*High debt ratios– FNMA does not apply*$697,500 max loan amount (see chart)*Can do Units! May require larger down payment + reserves *Owner Occupied Only *No FICO scores OK with alternative credit– 600 FICO*Cash out refi 95% to $417,000, 85% above *203K Streamline – The Renovation Loan*NO mandatory seller’s fees (except $60)*Termite clearance IS NOT mandatory

FHA Basics

* Non Occupant co-borrowers are allowed on FHA loans

100% debt ratio for primaryCombine all income and debt

•OTMIP and MMI– 1.75% and .55%• Word to rise to 2.25%

OTMIP can be financed and MMI drops off at 78% LTV

* Lender qualifications-- $250,000 to $1,000,000 net worth. Warrant for 3rd party loans-- broker

* High Balance FHA 2nd appraisal-over $417,000-LTV =/> 95%-SD/Riverside/SB Counties

* Be aware of FHA’s “90 Day Flipping” rule– February 1, 2010 one year waiver

FHA S.D. Loan Limits

FHA Riverside Loan Limits

FHA 203K Streamline Features

FHA Condo List

VA Basics

*Zero Down payment*$417,000 max loan amount*High Balance VA to $437,500 – partial down payment required above $437,500

*100% gift/loan OK for closing *Seller can pay all closing costs -VA No No max 4% of sales price *Seller can pay off buyer’s debts*No FICO minimum – alternative credit OK– 600 FICO*BK 13 – 1 year and Court approval*Veteran can re-use eligibility*VAFF – waived with perm disability*Seller Mandatory Costs*Must have termite clearance* Condos VA approved only

VA Condo Condo PUD– Will not accept FHA

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Guild Programs

* FNMA HomePath97% LTV, 90% investorNo MI, No Appraisal

*CALPERS, CALSTRS

*Jumbo Fixed to $2.0 millionAmortizing or Interest Only

*High Balance FHA, FNMA5/1 ARMs

    Thank You!

David Johnston

619-977-6497