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| FHA Insured 1-Year Adjustable Rate Mortgage
The monthly interest rate for this 1-year Adjustable Rate Mortgage is adjusted annually and calculated
on the basis of the average yield on U.S. Treasury securities adjusted to a
constant maturity of one year, plus an additional fixed margin of 2.75%. The
amount of rate adjustment is limited by caps to no more than 1% annually and no
more than 5% lifetime. The loan is assumable and no penalty is assessed for
prepayment. |
Loan Amount
| $155,250 or less,
depending on area. |
Qualifying Ratios
| 29% and 41% |
Term
| Fully amortizing
over 30 years. |
Eligible
Properties
| Single family
one-unit residences (call for information on 2-4 unit properties), including HUD approved condominiums, dwellings in Planned Unit Developments , and
townhouse projects. |
Maximum
Loan-To-Value
| Loan-to-Value is computed as the
loan amount divided by the purchase price or the appraised value, whichever is
less. If you're refinancing a loan which has been in effect for more than a
year, the appraised value must be used. Guidelines for maximum Loan To Value amounts
may vary for new construction properties.
|
Loan Amount |
LTV |
| Owner-Occupied |
Less Than $50,000
|
97%
|
| $50,001-$124,999
|
97% of First $25,000
95% of
Remainder
|
| Greater Than $125,000
|
97% of First $25,000
95% of
$25,000-$125,000
90% of Remainder |
| Second Home |
Less Than $155,250 |
85% |
| Investment |
NA |
NA |
Cash-Out Refinances are
available for 85% LTV. |
Mortgage
Insurance Premiums
| HUD charges a a one-time up-front
premium and an annual renewal risk-based mortgage insurance premium on all FHA
insured loans. Loans secured by condominium units are subject only to a monthly
insurance premium of .5% for the full term of the loan.
| LTV |
Up-Front
Fee |
Annual
Premium |
Term
(Years) |
| < 89.99% |
2.25% |
0.5% |
7 |
| 90.00%-95.00% |
2.25% |
0.5% |
12 |
| >95.01% |
2.25% |
0.5% |
30 | |
Subordinate
Financing
| Is allowed in certain limited
instances. |
Buy-Downs
| Buy-downs are permitted on
purchase transactions only. |
Seller Contributions
| Seller contributions are
permitted. Financing concessions, which include seller paid discount points,
interest rate buy-downs, payment of mortgage interest, and up-front MIP must not
exceed 6% of the sales price. Sales concessions, which include seller-paid
closing costs, buyer-broker fees, condo or HOA fees, decorating allowances,
etc., must be deducted from the sales price, dollar-for dollar, before
calculating the mortgage amount. |
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Please Note:
The
program guidelines presented here are general, and may not apply to your
particular situation. Program costs and requirements may be different based on
down payment, loan amount, occupancy, property location and other factors.
Please contact a mortgage consultant for a customized analysis. Exceptions to
these guidelines may also be available on a case by case basis. |
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