TOC Understanding FHA Loans
Understanding FHA Loans
Table of Contents
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TABLE OF CONTENTS
FHA PURCHASE TRANSACTIONS - SECTION 2
Page No. Topic
2-1 What Are the Advantages of Financing FHA?
2-2 Calculating the Loan Amount
2-4 FHA Mortgage Insurance Premium (MIP)
2-9 Cancelation of Annual MIP & Refunds of Up-Front MIP
2-10 Up-Front Mortgage Insurance Premium Refund Percentages for
Loans Endorsed for Insurance on or After December 08, 2004
2-11 FHA Maximum Loan Limits
2-13 How to Raise the FHA Mortgage Limits in Your County
2-14 FHA Loan Programs
2-16 Buydowns
2-18 Buydown Agreement
2-20 Energy-Efficient Properties
2-21 FHA Loans with Second Mortgages
2-24 Basic Eligibility for an FHA Loan
2-26 FHA Mortgages to United States Veterans
2-28 HUD Assumption Requirements
2-32 Identity-of-Interest Transactions
2-33 Maximum Seller Contributions
2-35 Financing Closing Costs Into the Loan
2-38 Processing an FHA Purchase - Loan Originator's Responsibilities
2-40 Reviewing the FHA Sales Contract
2-41 FHA Exhibit to Agreement
2-42 Preparing the Good Faith Estimate
2-43 Explanation of Certain Settlement Costs on the Good Faith Estimate
2-44 Sample Good Faith Estimate B Borrower Pays All Settlement Costs
2-46 Sample Good Faith Estimate - Price Increased & Seller Pays $3,000
2-48 Determining Qualifying Ratios - Adequacy of Effective Income
2-49 FHA Pre-Qualification Worksheet
2-50 Handling Borrowers with Monthly Alimony Payments
2-51 Completing the FHA Loan Application
2-51 Properties Less than 12 Months Old
2-52 Land Contracts
2-54 Mortgage Eligibility (Borrowers)
2-54 Non-Occupying Co-Borrowers, Co-Signers, and Non-Purchasing Spouses
2-56 Living Trusts
FHA PURCHASE TRANSACTIONS - SECTION 2 (Cont'd)
Page No. Topic
2-57 Sources of Down Payment and Settlement Charges
2-65 Sources of Monthly Income
2-77 Assets
2-78 Liabilities
2-79 FHA Guidelines for Rental Properties
2-83 Reviewing the Declarations Section B
Derogatory Credit Issues
Judgments Bankruptcies
Collections
Foreclosure
Defaulted Student Loans
2-86 Citizenship Issues
2-88 Tips to Remember After Completing the Application
2-89 Alternative Documentation Processing
2-90 FHA Compensating Factors
2-91 FHA Loan Application Checklist
2-92 Form HUD-92900-A AHUD/VA Addendum to URLA
2-94 Informed Consumer Choice Disclosure Notice
2-97 Important Notice to Homebuyers
2-99 Notice to Homeowner - Assumption of HUD/FHA Insured Mortgages Release of Personal Liability
2-100 Importance of Home Inspections
2-101 A For Your Protection Get a Home Inspection@
2-102 Borrower's Blanket Signature Authorization
2-103 Social Security Number Certification
2-104 Alternative Documentation Checklist
2-105 Gift Letter Affidavit
2-106 Loan Processor=s Responsibilities
2-107 Documentation Requirements
2-109 The FHA Connection - Access Via the Internet
2-110 Social Security Number Validation
2-112 Ordering a Case Number
2-113 Sample Case Number Assignment Sheet
2-114 Home Mortgage ADP Code Chart
2-117 HUD's Credit Alert Interactive Voice Response System (CAIVRS)
2-119 Limited Denial of Participation (LDP) List & GSA List
2-122 Credit Report Requirements
2-127 Ordering the FHA Appraisal
2-129 Reviewing the FHA Appraisal
2-130 Sample FHA Appraisal
2-133 Conditional Commitment
2-138 Working Up the Loan for Submission
2-139 Preparing the FHA Loan Underwriting and Transmittal Summary
2-142 Completing the HUD/VA Addendum to the URLA - Form HUD-92900-A
2-147 Submission Checklist of Loan Documents
2-148 HUD Case Binder
2-150 FHA Case Binder B Document Order
FHA REFINANCE PROGRAMS - SECTION 3
3-1 FHA Refinance Programs
3-2 Streamline Refinances
3-3 Streamline Refinances Without an Appraisal (No Credit Qualifying)
3-5 Streamline Refinances With an Appraisal (No Credit Qualifying)
3-6 Credit Qualifying Streamline Refinances (With or Without an Appraisal)
3-7 Additional Information on All Streamline Refinances
3-12 FHA MIP On Refinances
3-13 FHA Refinance Transactions - Loan Originator's Responsibilities
3-15 Calculating Refunds of FHA One-Time MIP
3-16 Worksheet for Calculating Refunds of FHA One-Time MIP
3-17 Calculating the New Loan Amount
3-18 FHA Refinance Worksheet
3-19 Preparing the Good Faith Estimate
3-22 Checklist of Documents Needed for Refinance Loans
3-23 Loan Processor=s Responsibilities
3-24 Obtaining Case Numbers and Refinance Authorization Numbers
3-26 Case Number Assignment Sheet
3-27 Ordering the Appraisal for a Refinance Transaction
3-28 Reviewing the Payoff Statement
3-29 Sample Payoff Statement
3-30 Determining the Maximum Mortgage Amount
3-31 FHA Refinance Maximum Mortgage Worksheet
3-32 Revised Good Faith Estimate
3-33 Completing the FHA Loan Underwriting and Transmittal Summary
3-34 Regular No Cash-Out Refinance
3-37 Calculating the New Loan Amount on a Regular No Cash-Out Refinance
3-38 FHA Refinance Worksheet
3-39 Good Faith Estimate
3-41 Payoff Statements
3-43 FHA Refinance Maximum Mortgage Worksheet
FHA REFINANCE PROGRAMS - SECTION 3 (Cont'd)
3-44 Completing the FHA Loan Underwriting and Transmittal Summary
3-45 Completing the HUD/VA Addendum
3-47 Cash-Out Refinances
3-49 Calculating the New Loan Amount on a Cash-Out Refinance
3-50 FHA Refinance Worksheet
3-51 Good Faith Estimate
3-52 Payoff Statement
3-53 FHA Refinance Maximum Mortgage Worksheet
3-54 Completing the FHA Loan Underwriting and Transmittal Summary
3-55 Completing the HUD/VA Addendum
FHA PROPERTY CONSIDERATIONS - SECTION 4
4-1 Special FHA Loan Programs
4-2 Construction-Permanent Mortgage Program
4-7 Energy-Efficient Mortgage Program
4-11 203(k) Rehabilitation Loan Program
4-12 FHA Requirements for Individual Wells and Septic Tanks
4-17 FHA Repair and Inspection Requirements for Existing Properties
4-19 Acceptable Communities
4-20 Obtaining FHA Condominium Approval
4-20 Obtaining Condominium Approval - Existing Condominium Projects
4-23 Suggested Checklist for Spot Loan Approval - Existing Condominium Projects
4-27 Checklist of Required Documents for FHA Approval of Condominiums Previously
Approved by VA or Fannie Mae
4-28 Checklist of Required Documents for FHA Approval of Condominium Conversions
4-29 Checklist of Required Documents for FHA Approval Additional Phases in a
HUD-Approved Condominium Project
4-30 Checklist of Required Documents for FHA Approval of Condominiums that are Proposed,
Under Construction, or Less Than One Year Old
4-31 Guidelines for Builders Offering FHA Financing
4-32 Acceptable FHA New Construction Properties
4-33 Preparing the Builder Certification Form
4-38 Plans & Specs Provided by the Builder
4-39 New Construction Review Sheet
4-40 AEarly Start Letters@
4-43 Ordering the Case Number
FHA PROPERTY CONSIDERATIONS - SECTION 4 (Cont'd)
Page No. Topic
4-44 Compliance Inspection Report and Change Orders
4-45 Compliance Inspection Report
4-46 Request for Acceptance of Changes in Approved Drawings and Specifications
4-47 Homeowner=s Warranty Certification
4-48 Warranty of Completion of Construction, Form HUD-92544
4-49 Subterranean Termite Treatment Builder=s Certification and Guarantee
4-50 New Construction Subterranean Termite Soil Treatment Record
4-51 Using a Master Appraisal Report
4-53 Checklist of Documents Needed for a Master CRV Request
4-54 Sample Master Certificate of Reasonable Value
4-56 Summary Sheet for Master Certificate of Reasonable Value or
Master Conditional Commitment
4-57 FHA Master Appraisal Report
