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ELIGIBLE BORROWERS
· U. S. citizens and permanent resident aliens.
· Non-permanent resident aliens may qualify.
· Bankruptcy: Borrowers with a bankruptcy discharged within the past two years are not eligible.
· Foreclosure: Borrowers with a previous foreclosure that occurred within the past three years are not eligible.
ELIGIBLE PROPERTY TYPES
203B Loans
1- to 4-unit property.Planned unit developments (PUDs).
234C Loans
Condominiums (prior approval by FHA Field Office is required).
INELIGIBLE PROPERTY TYPES
Manufactured homes.Spot condominiums.Cooperatives.Working farms, ranches or orchards.
MINIMUM LOAN AMOUNT
$20,000.
MAXIMUM LOAN AMOUNTS
Varies by county, please refer to the FHA Connection website to determine the geographic mortgage limits. Click Here for County Loan limits
All loans require borrowers to make a $100 down payment. The standard FHA policy requiring that borrowers make a 3.5% investment is not required for the FHA $100 HUD Repo program.
TEMPORARY BUYDOWN
Not allowed.
SOURCE OF FUNDS
Borrowers must contribute a $100 down payment towards the transaction from their own funds or from another acceptable source.
PURCHASES WITH GIFTS, GRANTS OR ELIGIBLE DOWN PAYMENT ASSISTANCE
If any portion of a borrower's funds to close is derived from a gift, grant, community second program or eligible down payment assistance program, the loan must meet all of the criteria listed below. These guidelines apply to all gifts, regardless of the source. Seller-funded down payment assistance programs remain ineligible.
· Loan must receive a Total Scorecard "Approve" or "Accept" response.
· Maximum housing ratio is 31%.
· Maximum total debt ratio is 43%.
· Borrowers must have two months reserves after funding - reserves may not be gifted.
APPRAISAL
Must comply with FHA's minimum property standards. Refer to Mortgagee Letters 2005-34 and 2005-06. The original appraisal ordered by the company marketing the property can be used by the borrower at no cost if the sales contract was signed prior to the six-month appraisal expiration. At times, a local HUD Homeownership Center (HOC) may extend the appraisal 30 days past the normal six months.
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