Important Changes to FHA Home Loans Now In Effect

how long to wait after foreclosure

Tyler Frank,
Paramount Mortgage
NMLS ID 942420

The Federal Housing Authority (FHA) has made some changes for 2014, which took effect January 1 and affect FHA home loans. First and foremost, you will see a drop in the maximum allowable loan. In the St. Louis metro area, for example, the new max loan amount for a single-family home has been lowered to $271,050 from $281,250.

Other items of note regarding FHA have not changed; so as a refresher let’s look at FHA qualifications and rules:

  • Borrower must put 3.5% down based on sales price. 100% of the buyer’s contribution can be in the form of a gift. There are no reserve requirements; however, reserves can help to build a stronger case for a “tight” loan.
  • The seller can contribute 6% of the sales price towards closing cost, points and pre-paid items.
  • There is an up-front mortgage insurance premium (UFMIP) of 1.75% for all loan terms and amounts added to the base loan amount.

Some underwriting items include:

  • Income, such as a pay raise that will start before the first loan payment, may be counted towards qualifying.
  • In most cases, underwriters do not have to count any debt with 10 or less payments remaining. This is typically for non-revolving accounts, such as car payments and student loans.
  • A Chapter 7 bankruptcy will not disqualify a borrower if 2 full years have passed since the bankruptcy was discharged.
  • A borrower could obtain financing during a Chapter 13 bankruptcy if at least 1 full year has passed since it was filed, all Chapter 13 payments have been made on time, and the court gives permission to the borrower to incur additional debt.

About the author: Tyler is Paramount Mortgage Company’s general counsel as well as a licensed mortgage loan originator. Tyler is a 1999 graduate of the University of North Carolina at Chapel Hill where he was a member of the university’s Dean’s List. He received his J.D. from Washington University’s School of Law in 2002 and is a member of the Missouri Bar Association and the Illinois State Bar Association.

Tyler is “big brother” mentor and role model to a young man through the Big Brothers Big Sisters of Eastern Missouri. He is a member of the St. Louis Sports Commission’s Associates Board, the University of North Carolina at Chapel Hill’s Alumni Admissions Committee and Mary Institute and St. Louis Country Day’s Alumni Executive Committee. In 2012, Tyler successfully summited Mt. Kilimanjaro (19,341 ft.) in Tanzania, Africa, and ran his first full marathon.

Tyler can be reached by email at or by phone at 314.372.4313.

Print Friendly, PDF & Email

28 comments to Important Changes to FHA Home Loans Now In Effect

  • … [Trackback]

    […] There you will find 88912 additional Information on that Topic: […]

  • … [Trackback]

    […] Read More Info here on that Topic: […]

  • … [Trackback]

    […] Find More to that Topic: […]

  • … [Trackback]

    […] Read More on that Topic: […]

  • For most recent information you have to go to see the web and on web I found this site as a most excellent site
    for most up-to-date updates.

  • Today, I went to the beach front with my kids. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She placed the shell to her
    ear and screamed. There was a hermit crab inside and it pinched her ear.
    She never wants to go back! LoL I know this is
    completely off topic but I had to tell someone!

  • Nice post. I was checking continuously this blog and I am impressed!

    Extremely useful information specially the last part :) I care for such information much.

    I was looking for this particular info for a very long time.

    Thank you and good luck.

  • Do you have a spam issue on this blog; I also am a blogger,
    and I was wanting to know your situation; many of us have created some nice methods and we are looking to exchange techniques with other folks, please shoot me an e-mail if interested.

  • Hi there! I could have sworn I’ve been to this website before
    but after reading through some of the post I realized
    it’s new to me. Anyhow, I’m definitely glad I found it and I’ll be book-marking and checking
    back often!

  • Pretty nice post. I just stumbled upon your blog and wished
    to say that I have truly enjoyed browsing your blog posts.
    After all I will be subscribing to your rss feed and I hope
    you write again soon!

  • It’s going to be end of mine day, except before finish I am reading this wonderful paragraph to
    improve my knowledge.

  • My spouse and I stumbled over here from a different web address and thought I might as well check things out. I like what I see so i am just following you. Look forward to looking into your web page repeatedly.

  • Thanks on your marvelous posting! I definitely enjoyed reading it, you might be a great author.
    I will remember to bookmark your blog and may come back in the future.
    I want to encourage you to continue your great work,
    have a nice holiday weekend!

  • Hey I know this is off topic but I was wondering if you
    knew of any widgets I could add to my blog that automatically tweet my newest twitter updates.
    I’ve been looking for a plug-in like this for quite some time and was hoping maybe you would have
    some experience with something like this. Please let me know if you run into anything.
    I truly enjoy reading your blog and I look forward
    to your new updates.

  • What’s up it’s me, I am also visiting this web
    page daily, this site is truly fastidious and the visitors are genuinely sharing pleasant thoughts.

  • I’ve been surfing on-line greater than three hours lately, yet I
    never discovered any interesting article like yours.
    It’s beautiful price enough for me. In my opinion,
    if all webmasters and bloggers made good content as
    you did, the net will likely be a lot more useful than ever before.

  • … [Trackback]

    […] Find More on that Topic: […]

  • … [Trackback]

    […] Find More on on that Topic: […]

  • … [Trackback]

    […] Here you will find 95505 more Info to that Topic: […]

  • Hello I am so grateful I found your webpage, I really found you by accident, while
    I was searching on Digg for something else, Nonetheless I am here now and would just like to say thanks a
    lot for a remarkable post and a all round thrilling
    blog (I also love the theme/design), I don’t have time to browse it
    all at the minute but I have book-marked it and also added your RSS feeds, so when I
    have time I will be back to read more, Please do keep
    up the superb work.

  • My family always say that I am wasting my time here at web, however I know I
    am getting knowledge all the time by reading thes pleasant articles.

  • I’m really enjoying the design and layout of your blog. It’s a
    very easy on the eyes which makes it much more pleasant
    for me to come here and visit more often. Did you hire out a designer to create your theme?

    Superb work!

  • If some one desires expert view on the topic of running a blog after that i propose him/her to visit this
    web site, Keep up the good job.

  • Very nice article, just what I wanted to find.

  • This is a topic which is close to my heart… Many thanks!
    Exactly where are your contact details though?

  • I seriously love your website.. Great colors & theme.
    Did you make this web site yourself? Please reply back as I’m hoping to
    create my own blog and would love to learn where you got this from or what the theme is
    called. Kudos!

  • I believe you have noted some very interesting points, regards for the post.

  • My brother suggested I may like this website. He used to
    be entirely right. This put up actually made my day. You cann’t
    imagine simply how a lot time I had spent for this info!
    Thank you!

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>