FHA VA programs

1. “ The Come Back Kids – VA and FHA” Presented by: David Johnston San Diego Funding [email_address] 619-977-6497

2. Program Emphasis *Higher Debt Ratios * Low/No down payment * 100% Gift money OK *BKs only 2 yrs old (FHA/VA) *Seller paid closing costs *Declining Markets OK *Manufactured Housing *Not a “magic wand”

3. FHA Basics * Don’t have to be 1 st Time Buyer * 3.5% Down Payment *Need Condo approval – no PUD approval *Cannot do ‘spot’ approvals on condos-*Seller can pay all closing costs - not to exceed 6% of sales price *BKs only 2 years old *High debt ratios– FNMA does not apply *$697,500 max loan amount (see chart) *Can do Units! May require larger down payment + reserves *Owner Occupied Only * No FICO scores OK with alternative credit– 620 FICO *Cash out refi 95% to $417,000, 85% above *203K Streamline – The Renovation Loan * NO mandatory seller’s fees (except $60) * Termite clearance IS NOT mandatory

7. FHA 203K Streamline Features

8. FHA Basics * Non Occupant co-borrowers are allowed on FHA loans 100% debt ratio for primary Combine all income and debt * MIP and MMI– 1% MIP .90 MMI OTMIP can be financed and MMI drops off at 78% LTV * Rate and Term Refis to 96.5% LTV-- appraisal * High Balance FHA 2 nd appraisal -over $417,000 -LTV =/> 95% -SD/Riverside/SB Counties * Be aware of FHA’s “Flipping” rule

9. FHA Example

10. FHA S.D. Loan Limits

11. FHA Riverside Loan Limits

13. FHA Condo List

15. VA Basics * Zero Down payment *$ 417,000 max loan amount * High Balance VA to $437,500 – partial down payment required above $437,500 *100% gift/ loan OK for closing costs *Seller can pay all closing costs -VA No No max 4% of sales price * Seller can pay off buyer’s debts * No FICO minimum – alternative credit OK– 620 FICO *BK 13 – 1 year and Court approval *Veteran can re-use eligibility *VAFF – waived with perm disability *Seller Mandatory Costs *Must have termite clearance

19. VA Payments

20. VA Condo Condo PUD

21. Search by City and State

23. Double Check Legal

24. Thank You! David Johnston 619-977-6497 [email_address]