What is an FHA loan? What are the requirements? What are the loan limits? How can you get an FHA loan?

1. FHA Loans- Home Ownership for
low down payment
Shashank Shekhar
CEO, Arcus Lending

2. About Arcus Lending
• Arcus Lending is Mortgage Lender based in San Jose,
California
• Products Offered: Residential Mortgages- FHA,
Conventional, VA, 203K, HARP, HomePath, Reverse
Mortgage, CHDAP
• Geography Served: California, Washington and
Oregon
• What are they known for: Legendary customer
service, quick closing and rates that are consistently
better than the leading banks

3. Ab About Shashank Shekhar
• Shashank is the Founder and CEO of Arcus Lending
• An Amazon.com Best-selling Author, Shashank is
widely regarded as California’s #1 Mortgage Expert
• He is a National speaker, and a blogger who is
frequently tapped for his expertise by various
national and local media including FOX, CBS, ABC and
NBC

4. • The information contained within this document
is for educational purposes only. Every attempt
has been made to provide accurate, up to date,
reliable and complete information. No
warranties of any kind are expressed or implied.
Readers acknowledge that the author is not
engaging in rendering legal, financial or
professional advice.
Disclaimer

5. Agenda
• What is an FHA loan?
• What are the conditions and guidelines?
• What are the requirements for an FHA loan?
• How do I get the loan?

6. What is an FHA loan?
• Federal Housing Administration (FHA) Loans are
insured by Housing and Urban Development (HUD)
which allows lenders to offer low down payment
loans to homebuyers.
• FHA insures loans for first time home buyer
mortgage loan, FHA streamline refinance, FHA
regular refinance, Cash-out refinance and also home
purchase by people who are NOT first time home
buyers.

7. What is an FHA loan?
• FHA however doesn’t provide loan directly.
• A borrower needs to work with an FHA approved
lender like Arcus Lending to qualify for the home
purchase or refinance loan.

8. What are the requirements?
• Property must be owner occupied.
• Available for 1-4 units houses including single family
residence, town-homes, condominiums and even
manufactured homes.

9. What are the requirements?
• Impound account is required on all FHA loans.
• As part of impound account, payment for property
taxes and home insurance are broken down into
monthly payments and are paid to the lender along
with mortgage payments every month. The lender
then makes a payment directly to county or your
home insurance company when its due.

10. FHA Requirements Continued
• A two years employment history is required.
However, if you went to school immediately prior to
starting your employment, the school years can be
counted towards “two years” requirement as long as
your job is in the same field as your education.
• You should have enough income to meet the
maximum debt to income ratio requirement of 43%.
In some cases, that ratio can be allowed to as high as
50%.

11. FHA Requirements Continued
• Upfront mortgage insurance (UFMIP) of 1.75% and
annual mortgage insurance of 0.45% – 1.55% is
required on all FHA loans.
• FHA offers 30 year fixed, 15 year fixed and 5 year
ARM loan
Note: (this is not an exhaustive guideline and a particular lender may even
have their own set of guidelines)

12. What are the loan limits?
• For 2013, the FHA national “floor” loan limit for 1
unit house is $271,050. This means that all counties
in the country will at least have this as their loan
limit.

13. What are the loan limits?
• FHA also classified several counties as “high-cost”
meaning the loan limits in those counties are higher
than $271,050. The maximum loan limits in some
counties can be as high as $729,750 and in other
counties it’s between the floor i.e. $271,050 and the
highest loan limit i.e. $729,750.
• Call us to find the FHA loan limit for your county

14. How do I get a FHA loan?
• Call (408) 615 0655
• Email: Info@ArcusLending.com
• Website: www.ArcusLending.com
• Blog: www.LendingExpertBlog.com
• FaceBook: www.facebook.com/ArcusLending
Licensing Info:
Arcus Lending Inc, NMLS ID 1035734 and CA BRE #01857474
Shashank Shekhar NMLS ID 8176