December 15, 2020 at 8:36am | Mac Rogers

Are you thinking of buying a home? Looking into the various types of loans? In this video, I will give you a brief overview of FHA loans. What is it? Who qualifies? How do you qualify and why it's not a good loan.

2020 FHA Loan Limits
Lending Limits for FHA Loans in Your State The FHA has a maximum loan amount that it will insure, which is known as the FHA lending limit. These loan limits are calculated and updated annually, and are influenced by the conventional loan limits set by Fannie Mae and Freddie Mac. The type of home, such as single-family or duplex, can also affect these numbers.

For 2020, the FHA floor was set at $331,760 for single-family home loans. This minimum lending amount covers 80% of all U.S. counties. The FHA ceiling represents the maximum loan amount and is illustrated in the table below.

Also for 2020, the FHA ceiling was set at $765,600 for single-family home loans. This represents the highest amount that a borrower can get through the FHA loan program. It applies to high cost areas in the United States and is illustrated in the table below.

You can also use FHA loans for multi family properties as long as you live in one of the units.

FHA Loan Requirements Important FHA Guidelines for Borrowers The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes in the United States and its territories. It is the largest insurer of residential mortgages in the world, insuring tens of millions of properties since 1934 when it was created. FICO® score at least 580 = 3.5% down payment.

FICO® score between 500 and 579 = 10% down payment
MIP (Mortgage Insurance Premium ) is required.
Debt-to-Income Ratio Less Than 43%.
The home must be the borrower's primary residence.
Borrower must have steady income and proof of employment.

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Mac Rogers
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