FHA purchase loans = 96.5%. Max loan = ?
FHA refinance loans = ? Max loan = ?
FNMA purchase loans = $417K @ 95%
FNMA refi loans = $417K @ 95%
High Balance has county limits. High balance program allows for 90% but MI companies only go to 85%.
I am not a fan of FHA nor do I personally work with them. I think that the limit is $729,500.
You pay an up front MI fee of approx 1.75%.
Mortg insurance is mandatory for 5 years.
It’s an option for ppl with lower credit scores that want to buy. I equate it to assigned risk for auto insurance. The govt is helping you, and you are going to pay for it. Usually lower debt ratios than FNMA.
With a higher credit score and 1.5% more down, FNMA is usually a better rate AND easier to qualify for and get closed up to $417K..
Above $417K you need 15% down for FNMA around here, but as little as 3.5% for FHA.
Realize without FHA, the price of houses would be much lower. Artificially keeps prices high through subprime type financing.
There are refi programs in the works that will allow up to 105% on refi’s,,,details expected any day.
With higher credit scores 680-700+ FNMA purchase loans are available with as little as 5% down, but it is harder to qualify than with 10% down.
Mortgage insurance additional on any single loan above 80%.
So many rules/guidelines/exceptions yet it is still possible to borrow more than one should be comfortable borrowing. Assets can make a difference. It’s all about getting approved.
I have seen FNMA approvals as high as 65% of gross income, but only on low LTV’s. Does that help ?…HLS
