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“The Edge” Helping You Get An Edge On Your Competition FHA Loans – FHA's single-family programs are limited to 1 to 4 unit owner-occupied principal residences only. FHA Loan Limits: One Unit, Call for 2-4 Units Maricopa County: $346,250 Pinal County: $346,250 PimaCounty: $316,250 MohaveCounty: $322,500 YavapaiCounty: $390,000 YumaCounty: $271,050 CoconinoCounty: $450,000 NavajoCounty: $308,750 GrahamCounty: $271,050 Products Offered: • 10-, 15-, and 20-year fixed-rate mortgage • 25- and 30-Year Fixed-rate mortgage • 1/1, 3/1, and 5/1 CMT adjustable-rate mortgage Required Down Payment: 3.500% (Sale Price X .965 equals FHA Loan Amount) Borrowers must contribute a 3.50% investment towards the transaction from their own funds or from an acceptable gift source. - Savings and Checking Accounts - Retirement Accounts – Did you know that under IRS Code 72 (t) you can take a taxable Penalty-Free IRA Distribution if you use the money for the purchase of a primary residence, you can take up to $10,000 if you are a first time home buyer, or if it’s been a least two years since you owned a home. - Gift Funds. An outright gift of the cash investment is acceptable if the donor is the borrower’s relative, the borrower's employer or labor union, a charitable organization, a governmental agency or public entity that has a program to provide homeownership assistance to low- and moderate-income families or first-time homebuyers, or a close friend with a clearly defined and documented interest in the borrower. No repayment of the gift may be expected or implied. (As a rule, we are not concerned with how the donor obtains the gift funds provided they are not derived in any manner from a party to the sales transaction. Donors may borrow gift funds from any other acceptable source provided the mortgage borrowers are not obligors to any note to secure money borrowed to give the gift.) Up-Front Mortgage Insurance Premium: 2.250% of Loan Amount. Annual Premiums for 30 Year Term: .55 if financing over 95% of sale price. Seller Contribution toward Closing Cost and Pre-Paids – 6% of Sales Price Minimum Credit Score – 620 Example: How to calculate a FHA Loan Amount: Sale Price: $200,000 Base Loan Amount: $193,000 ($200,000 x .965) Up-Front Mortgage Ins: $4,342 ($193,000 x .0225) Total Loan Amount: $197,342 Revised 05/11/10
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