The following characteristics and participants are ineligible for the FHA
investment properties are allowed
home properties are allowed
“Stated Income” loan
five or more unit buildings are allowed, unless final product will be a
properly zoned 1-4 unit, owner occupied property.
“Zero-Down” loan option, unless the seller is will to participate with an
FHA approved “Down Payment Assistance Program”.The property’s value must support the amount of the
assistance being requested.
properties that are owned by the seller for less than 90 days are allowed.
Homes owned by the seller for 90 days to one year, require a second
appraisal at the sellers expense.
chapter 7 bankruptcies are allowed that are less than one year old.Guidelines state a two period since the
bankruptcy discharge, with no late payments on the credit report during
that time.Bankruptcies between
one and two years, and late payments since the bankruptcy may be allowed
if it is determined to be caused from extenuating circumstances (e.g…death
in the family, job loss, personal tragedy, health issue, etc…) Overall
credit for the past 12 months must have been current, exceptions are
“Single-Wide” properties are allowed.
“New-Construction” close outs allowed, at some point the local
municipality would have had issued a “Certificate of Occupancy”.
luxury items, such as swimming pools, are allowed.However, up to $1,500 can be used
toward the repairs of an existing swimming pool.
upfront monies released for repairs prior to being fully installed.However special order items, such as
cabinets, can be paid for prior to installation.