Texas 100% FHA Mortgage Lenders Summary
Texas 100% Mortgage Lenders Key points
- Minimum 620 Credit Score!
- Grant that does have to be repaid if you live in the house for at least 3 years!
- Max DTI 50%!
- Must have verified rental history or rent-free letter with minimal increase in housing payments!
- Must have NO Overdrafts ON Bank Statements!
FHA Mortgage Lenders 100% Downpayment and closing cost
100% FHA Mortgage Lenders Grant Funds available, either 3% or 4% of the First Mortgage Loan amount.
100% FHA Lenders Grant funds may be used for down payment and/or closing costs. There must be no cash back to the FHA Mortgage applicant from the Grant proceeds. No funds may go to the 100% FHA Mortgage applicant at closing other than the initial escrow deposit. The seller can pay up to 6% to cover your closing cost!
Texas 100% FHA MortgageFHA Mortgage Lenders 100% Financing Description
The 100% Texas 100% FHA Mortgage program is designed to increase homeownership opportunities for low-to-moderate income individuals and families. Down Payment Assistance (DPA) is available in the form stated within.FHA
100% FHA MortgageFHA Mortgage Lenders 100% Financing Loan LImits
Texas Conforming Loan Limits as per State / County Requirements Texas 100% FHA Mortgage limits by county), not including UFMIP if financed.
Texas FHA Mortgage Lenders 100% financing Terms and Conditions
• The 30-year fixed term with full amortization.
• 203(b) in accordance with 100% FHA guidelines.
• 1-4 units allowed.
• Cooperative housing (co-op) NOT eligible for 100% FHA MortgageFHA Mortgagefinancing.
100% FHA MortgageFHA Mortgage Lenders Credit
Max DTI of 47.00% ▪ Manual – Minimum FICO 620 ≥ Max DTI of 50.00%
▪ AUS – Minimum FICO 620 ≥
▪ Manual – Minimum FICO 680 ≥
Mortgage Lenders 100% Mortgage Loan Eligibility
The 100% 100% FHA MortgageFHA Mortgage applicant must meet the following requirements:
• Occupy the residence as their primary residence.
• Non-occupant co-100% 100% FHA Mortgage applicants/cosigners are not allowed.
• The income limit is 140% of Area Median Income (AMI) or maximum allowable by FHA. Limit is based on
qualifying income used for the transaction, not household income. For AMI refer to Income Limits
• FICO 620 ≥ with AUS and DTI not exceeding 50.00%:
• Must follow AUS findings.
• 12 months housing history is required, 100% 100% FHA MortgageFHA Mortgage applicant living rent-free acceptable.
• 100% 100% FHA MortgageFHA Mortgage applicants who indicate they are living rent-free – 100% FHA Mortgage FHA mortgage Lenders will require verification from the property owner where they are residing that the 100% 100% FHA Mortgage applicants has been living rent-free and
the amount of time the 100% 100% FHA Mortgage applicant has been living rent-free.
• FICO 620 ≥ with Manual Underwrite and DTI not exceeding 47.00%:
• Follow manual 100% FHA guidelines including front and back-end ratios.
• 1 compensating factor must be met.
• 12 months housing history is required, 100% 100% FHA Mortgage applicant living rent-free acceptable.
• 100% 100% FHA Mortgage applicants who indicate they are living rent-free – 100% FHA MortgageFHA Mortgage Lenders will require verification from the property owner where they are residing that the 100% 100% FHA MortgageFHA Mortgage applicant has been living rent-free and
the amount of time the 100% 100% FHA MortgageFHA Mortgage applicant has been living rent-free.
• FICO 680 ≥ with Manual Underwrite and DTI of 47.01% to 50.00%:
• Minimum FICO 680 required
• Must follow manual underwriting 100% FHA guidelines including front and back-end ratios.
• 2 compensating factors must be met.
• Max 50.00% DTI (100% 100% FHA Mortgage applicant living rent-free not allowed).
• 12 months housing history is required and must be documented.
• At least one of the 100% 100% FHA MortgageFHA Mortgage applicants to complete the simple and easy to use MGIC Homebuyer Education or similar
course.
• Local health authority well water analysis and /or septic report, where required by the local jurisdictional
authority.
100% FHA MortgageFHA Mortgage Lenders 100% financing qualifying Front and back-end ratios:
• 31/43: ▪ No Compensating Factors required, however, must have verified/documented cash reserves equal to or exceeding 1 total monthly mortgage payment for 1-4 units.
• 37/47: ▪ Require 1 Compensating Factor
• 40/50: ▪ Require 2 Compensating Factors (One must be: “Minimal Increase in Housing Payment”)
100% FHA MortgageFHA Mortgage Lenders 100% Financing Compensating Factors:
• Verified/documented cash reserves equal to or exceeding 3 total monthly mortgage payments for 1-2 units and 6 months for 3-4 units.
• Minimal Increase in Housing Payment
▪ New total monthly mortgage payment doesn’t exceed current total monthly housing payment by more than $100 or
5% (whichever is less); and
▪ There is a documented 12-month housing payment history with no more than one 30-day late payment.
▪ May not be used as a compensating factor if the 100% 100% FHA Mortgage applicant has no current housing payment.
• Residual income
100% mortgage Lenders Bank Account Assets
Bank Statements required to verify any assets required from the 100% 100% FHA MortgageFHA Mortgage applicant. The 100% 100% FHA MortgageFHA Mortgage applicant with NSF’s and/or overdraft charges will not be eligible solated NSF / overdraft charges may be reviewed for exception).
100% FHA MortgageFHA Mortgage Lenders 100% Financing Front & Back End Ratios Compensating Factors – Manual Underwrite
31/43 No Compensating Factors required, however, must have verified/documented cash reserves equal to or
exceeding 1 total monthly mortgage payment for 1-4 units.
37/47 Require 1 Compensating Factor
40/50 Require 2 Compensating Factors (One must be: “Minimal Increase in Housing Payment.”)
Payment plans for IRS obligations not acceptable.
If no layered risk, Underwriters discretion is used for exceptions to the following overlays based on the overall 100% FHA MortgageFHA Mortgage applicants profile:
1. Paying off debt to qualify is not allowed.
2. Collections with an aggregate total over $2,500 must be paid or resolved regardless of age of collection account.
• Medical Collections excluded from the aggregate total
• Collections under $2,500 fall under standard 100% FHA requirements
3. No outstanding judgments, including repayment plan. All outstanding judgments must be paid in full.
Chapter 13 Bankruptcies must be fully discharged before eligible for financing.
100% FHA MortgageFHA Mortgage applicants in repayment plans for Federal or State Taxes for the 2 years prior to application date are not eligible unless debt is paid in full prior to closing. In all cases, 100% FHA MortgageFHA Mortgage applicants may not be delinquent on current taxes and an explanation is always required for any repayment plan. Multiple year repayment plans are not permitted.
100% 100% FHA MortgageFHA Mortgage Lenders Income Requirments
All 100% FHA MortgageFHA Mortgage applicants with new employment with previous two years’ education-related will require a minimum of six months on the current job for a standard salaried position. Positions with variable income will require a minimum of twelve months to effectively calculate stable monthly qualifying income. 4506T: Full 1040 transcripts required on all 100% FHA 100% mortgage Lenders, W2 Only transcripts not allowed.
100% FHA MortgageFHA Mortgage Lenders 100% Loan Approval Overview
This 100% 100% FHA MortgageFHA Mortgage loan program is designed for the 100% FHA MortgageFHA Mortgage applicants that has achieved financial stability as demonstrated by the file documenting that they have met the responsibilities associated with taking the next step to homeownership such as stability of employment and income, managing their finances and savings to a budget
that exhibits responsible repayment patterns and a satisfactory credit history. The 100% financing down payment
assistance program is intended to help these families or individuals and first-time homebuyers that have been unable to save a sufficient amount for a down payment and do not have any other resources available for down payment
assistance.
Due to the nature of the layered risk in the product offering, 100% FHA MortgageFHA Mortgage Lenders will require an evaluation of the 100% FHA Mortgage applicants’ current housing payment history and the 100% FHA Mortgage applicants must maintain a bank account which will be reviewed to ensure the 100% FHA Mortgage applicants is able to meet their monthly obligations based on their current income
level in a timely manner. 100% FHA MortgageFHA mortgage Lenders will require two months bank statements as part of the underwriting
evaluation. While we will allow the down payment to be covered by the grant and closing costs to be
covered by eligible gifts or seller credits, bank statements will still be required as part of the credit
evaluation.
In order to ensure the 100% FHA MortgageFHA Mortgage applicants will be able to manage a new mortgage payment, the evaluation will include housing payment history. We consider payments made after the due date to be late, inconsistent payment amounts throughout the month and full 30-day lates in making a decision on both the
100% FHA Mortgage applicants’ ability and willingness to repay. We also generally see payment shock on the housing
payment to the new required mortgage, so it is especially important to review the 100% FHA Mortgage applicants’ monthly budgeting and financial stability. New homeowners face increased costs when transitioning from a rental
property into home ownership where they are responsible for covering all utilities, incidentals, and
maintenance of the home.
