New FHA Guidelines

• 3.5% down payment required, may be a gift from family or grant.
• 6% seller contribution to buyers closing costs & prepaids allowed.
• 31% / 43% debt ratio.
• non occupying co borrower allowed, immediate family member or established relationship.
• no recent ( last 12 months ) derogatory credit appearing on the credit report, unless supportable with compelling compensating factors, medical may be an exception.
• 12 cancelled checks for verification of rent for a rental home or verification of rent form from an apartment complex.
• 3 alternate trade lines are acceptable if no active trade lines appear on the credit report, e.g. utility bills, car ins., cell phone, etc.
• 2 years out of Chapter 7 bankrupcy & no derogatory credit since.
• one year satisfactory Chapter 13 bankrupcy ok with trustee approval & satisfactory payment history.
• 3 years since foreclosure.

FHA has announced plans to implement a new mortgage insurance premium structure effective October 4, 2010. FHA’s upfront mortgage insurance premium will be adjusted down to 100 basis points on all amortization terms and the annual mortgage insurance premium will increase 85-90 basis points on amortizations terms greater than 15 years.

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FHA Maximum Loan Amounts for the Houston Metro Area
$271,050 Single Family Residence.

$347,000 Owner Occupied Duplex.

$419,400 Owner Occupied Triplex.

$521,250 Owner Occupied Fourplex