Buying your first home? FHA might be just what you need. Your down payment can be as low as 3.5% of the purchase price. Available on 1-4 unit residential properties. There is an upfront and a monthly charge for Mortgage Insurance because of the low down payment. FHA has financing for mobile homes and factory-built housing. They have two loan products - one for those who own the land that the home is on and another for mobile homes that are - or will be - located in mobile home parks.
Jumbo Loan Programs
We discussed jumbo mortgages in a previous chapter, but it’s worth going over them again in more detail. A “conforming loan” is one that is under a certain price threshold as determined by the Federal Housing Finance Agency (FHFA), and a “jumbo loan” (non-conforming) is a mortgage that is over that threshold. The current (2024) conforming loan limits in most of the 48 contiguous states and D.C. are $766,550 for a single-family home. The limit is higher for 2-4 family units. High-cost areas such as parts of California, CT., and NY currently have a conforming limit of $1,149,825 for a single- family residence. Your loan officer will tell you exactly what the limits are in the area that you are planning to make your purchase. Non conforming (jumbo) loans will have different guidelines than smaller ones. In addition to requiring a higher income level they often set a lower Debt to Income ratio, higher FICO credit score, and larger amounts of assets in reserve in your accounts after the closing
A Non-QM Mortgage
A Non-QM (Non-Qualified Mortgage) is a type of mortgage loan that does not meet the criteria or "qualifications" set forth
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