1. Proven employment status of at least 2 years.
2. Steady or increasing income over a 2 year period.
3. History of on-time payment. No more than two missed payments on your credit.
4. If you’ve filed for bankruptcy you must wait at least 2 years and have good credit since you filed.
5. Those with foreclosures must wait at least 3 years since the most recent foreclosure.
6. Monthly mortgage payment should be roughly 30% of your gross income.
7. You must pay a minimum of a 3.5% down-payment.

Call us today to see if a 30 Year FHA Loan is right for you!

• Most Conventional Loans require a minimum of a 5% down payment.
• 3% seller concessions are allowed for purchase loans.
• No Mortgage Insurance is required for loans less than an 80% LTV.
• Debt ratios cannot exceed a maximum of 41% – 45%, in some cases.
• Many Conventional Loans typically have higher FICO score requirements (lower score conventional loans will mean higher rates).
• Jumbo loans cannot be sold to FNMA or FHMLC and typically carry a higher interest rate vs. conforming loans.
• Loan limits vary by county, and rates depend on where your property is located.

American Home Free Mortgage has a wide variety of aggressive products to help your clients find the right loan for their larger loan sizes.  Contact your loan expert at American Home Free Mortgage to find out more about the various Conventional and Jumbo loan options.

With a fixed-rate mortgage, the interest rate stays the same during the life of the loan.  With an adjustable rate mortgage (ARM), the interest rate changes periodically, usually in relation to an index, and payments may go up or down accordingly.  There are many reasons why an ARM may be the best mortgage option for a borrower:

• ARM rates are lower than comparable fixed rates.
• Individuals that expect to move within 5 years may save a significant amount of money with an ARM.
• If the borrower believes interest rates will continue to decline, ARM’s may make sense.
• ARM’s typically have rate adjustment caps that limit the extent to which the interest rate can rise.
• Borrowers that are considering ARM’s must ask themselves several questions to determine if an ARM is right for them:
• Is my income currently adequate to cover higher mortgage payments if interest rates go up after the initial fixed term of 3, 5, 7, or 10 years?
• Will I be taking on other sizable debts, such as a loan for a car or school tuition, in the near future?
• How long do I plan to own this home? (If you plan to sell soon, rising mortgage rates may not pose the problem they do if you plan to own the house for a long time.)
• Can my payments increase even if interest rates generally do not increase?
• If you believe that your client may benefit from an ARM, contact an American Home Free Mortgage loan professional to learn about the variety of options that are available.

1. Existing base loan balance will not increase, except for mortgage insurance.
2. Monthly PITI can decrease by as little as $50 per month hundreds of dollars per month.
3. The minimum savings per year for this FHA Streamline Refinance program is $600.
4. If you had the FHA home 3 years or less, FHA gives you a credit for the MIP premium paid.
5. Borrower does not need to have another appraisal ordered.
6. Borrower may not need to have his/her income re-qualified.
7. Borrower will be able to skip a monthly loan payment with the refinance.

To qualify for the FHA Streamline Refinance, borrowers must meet the following criteria:

1. Must have an existing FHA loan in good standing.
2. If the borrower has a 660 FICO or higher, there is no income verification.
3. If the borrower has a FICO below 660, then income verification is still required.
4. There is no appraisal required and no need to prove equity in the home.