fha refinance

In this article we will talk about fha loan requirements.  An FHA loan is a great loan for a client whom wants to either purchase a home with little money down or refinance a home with little equity. The FHA loan will allow a client with moderate credit to refinance their home with out pricing or rate adjustments. A borrower with just a 620 credit score will qualify for the best FHA rates available. The maximum front end DTI is 45% and the maximum back end DTI is 55% You can go to 96.5% LTV on a purchase or rate/term refinance and 85% LTV on a cash out refinance. The drawback to this program is that every FHA loan requires the borrower to be charged an upfront MIP of 1.75% and an annual PMI of .0055 multiplied by the loan amount divided 12 to determine the monthly PMI amount. Again it is your job to do the math to determine which program will give the best terms to the client for their given situation. This program will not allow more than one 30 day late payment in the last 12 months.