FHA/VA/CHFA Mortgage Tidbits

April 13th, 2007 categories: Mortgages & Finance

I attended a great government mortgage seminar in Hartford yesterday and I have some little nuggets of info I’d like to share related to government loans.

FHA Mortgages

• –Borrowers may be able to qualify for an FHA Mortgage with credit scores as low as 600.
• –There are no purchase price limits.
• –No termite inspection is required anymore.
• –There are no income limits.
• –You don’t have to be a first-time home-buyer.
• –Borrowers can write off the monthly mortgage insurance premium as well as the upfront mortgage premium.

VA Mortgages

• –Most VA mortgages have a limit of $240,000 but the broker who gave the seminar yesterday stated that he has an investor who is willing to do VA mortgages up to $417,000. WOW.
• –You don’t have to be a first-time home-buyer.
• –Veterans with service-related disabilities do not have to pay the VA funding fee.
• –There is no monthly insurance premium.
• –You cannot have unmarried co-borrowers - either get married or only one person can be on the loan.

CHFA Mortgages

• –You must be a first-time home-buyer or not have owned a home within the last three years. If you are buying in a targeted area, this rule is ignored.
• –There is a recapture tax which kicks in (50% of the profit or 6% of sales price, whichever is lower) if all three of the following happen:
  • —You sell the house within 9 years;
  • —Your income is above CHFA’s income limits at the time of the sale; and,
  • —You are making a profit on the sale.

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1. Leo Namiot said at April 27th, 2007 at 3:27 am

   Just a comment on these notes:

   FHA is not credit score driven so the 600 FICO score is not accurate nor is the sales price limits, each county has a limit based on the type of property.

   So those who have lower FICO scores still may qualify with a good 12 month recnt history or credit even with a lower score, I just closed a loan with a 540 FICO yesterday!

   Also note :
   the with my DAP program the buyer can get 100% financing and up to 6% towards closing cost from the sellers. One last thing to note FHA does up to 4 family homes so this program is great for multi family purchases owner occupied.

2. berealct said at April 27th, 2007 at 1:09 pm

   Leo:

   Thanks for the comment. What is the lowest credit score possible?

   And what are the price limits for FHA then? CHFA posts theirs on a website - are these limits on-line somewhere?

   I just checked through my notes and my speaker did say - no purchase price limits. Could he mean something else?

   Thanks again.

3. Jon Tremblay said at April 27th, 2007 at 4:41 pm

   You sell the house within 9 years;
   Your income is above CHFA’s income limits at the time of the sale; and,
   You are making a profit on the sale.

   Do all the 3 items above on the CFHA need apply to have recapture? For example if your income did not exceed the limit yet the other 2 items applied would the recapture be waived?

4. berealct said at April 27th, 2007 at 7:18 pm

   The recapture tax only applies if all three occur.

5. Leo Namiot said at May 22nd, 2007 at 2:10 am

   http://activerain.com/blogsview/102516/FHA-Mortgages-Still-A

   List of limits by county for FHA loans can be found at that link.

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