Foreign National

Foreign National loans are designed for borrowers who live outside of the United States and would like to purchase a second or investment home.

  • Up to 75% LTV
  • No US credit required
  • Fewer country restrictions
  • DTI up to 50% considered
  • Second homes and investment properties
  • SFRs, townhomes, condos, 2-4 units
  • No SSN or ITIN required
  • 12 months reserves required
  • Non-warrantable condos considered
  • 5/1 ARM or 30-year fixed
  • Loans up to $750,000 (minimum $75,000)
  • Seller concessions up to 2%

Documents needed

  • Visa and Passport
  • Three Credit Reference Letters from your country.
  • Letter from employer verifying employment and wages (for employees)
  • CPA or Accountant letter reflecting annual gross income for 2 years, including year to date income.
  • Additional documents such as signed loan application and disclosures, clear title, appraisal, etc.

FHA 203 (k)

FHA 203K loans may be used to do minor remodeling and non-structural repairs on your primary residence. Bluecastle Lending does Limited 203 (k) loans.  Below are some highlights:

  • Minor remodeling and non-structural repairs only
  • Minimum $5,000 repair amount and maximum $35,000 including all costs
  • A 203(k) fee consultant is not required but may be used
  • Repairs must start within 30 days and be completed within 6 months
  • Maximum of 2 draws (Initial and Final)
  • Projects cannot have more than three (3) specialized contractors without the use of a General Contractor to manage the project
  • Painting and appliance purchases may be included as self-help

Limited 203 (k) Eligible Repairs and Improvements

  • Eliminating health and safety hazards to meet HUD’s minimum property requirements (MPRs)
  • Repair/replacement of roof provided the structural integrity of the structure will not be impacted by the work being performed; siding; gutters and downspouts
  • Repair/replacement/upgrade of existing: HVAC systems, plumbing, and electrical systems
  • Repair/replace/add exterior decks, patios, porches (must increase As-Is Property Value equal to the dollar amount spent on the improvement)
  • Minor remodeling, such as kitchens, which does not involve structural repairs
  • Painting, exterior and interior (changes for improved functions and modernization)
  • Eliminating obsolescence
  • Purchase and installation of appliances including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
  • Accessibility improvements for persons with disabilities
  • Lead-based paint stabilization or abatement of lead-based paint hazards if the structure was built before 1978
  • Septic system and/or well repair or replacement
  • Connecting to public water and sewage systems
  • Pool repairs
  • Installing/repairing fences, walkways and driveways
  • Check HUD’s website for a complete list of allowable repairs; www.hud.gov

Note: All repairs/improvements must meet HUD’s minimum property requirements and meet or exceed local building codes.

Limited 203 (k) Ineligible Repairs and Improvements

Major rehabilitation/remodeling, such as when any of the following exists:

  • Repairs/improvements requiring a work schedule longer than six months to complete
  • Rehab activities require more than 2 payments per specialized contractor
  • The required repairs arising from the appraisal requiring a HUD Consultant to develop a specification of repairs/Work Write-Up or requiring architectural exhibits/plans
  • The repair prevents the borrower from occupying subject property for more than 15 days Major remodeling and structural repairs/alterations such as 1-4 structure conversion, additions, finished attics, basements, constructing a garage, changing footprint or requiring architectural plans, etc.
  • Site improvements and landscaping
  • Constructing a windstorm shelter
  • Additions/alterations to support commercial use or to equip/refurbish space for commercial use
  • Recreational or luxury improvements such as –
    o Swimming pools
    o Exterior hot tub, spa, whirlpool bath or sauna
    o Barbecue pits, outdoor fireplaces or hearths
    o Bath houses, tennis courts, satellite dishes, photo murals, gazebos,
    o Tree surgery (except when eliminating an endangerment to existing improvements)

Manufactured Housing

Our Conventional & FHA Manufactured Housing mortgages are designed to make homeownership affordable for Purchases, Rate/Term and Cash-Out Refinances. We understand the unique in’s and out’s that financing manufactured homes present, that’s why we provide mortgages that are specifically aimed at making homeownership affordable for these types of homes.

All manufactured homes must have the original title surrendered in accordance with applicable state law and be titled and taxed as real property prior to closing for both Conventional and FHA loans. All loans must score Approve/Eligible or Accept through DU or LPA.

Conventional Highlights:

  • Primary Homes and Second Homes
  • Purchase, Rate-Term:
    • Maximum LTV 95%
    • Minimum FICO 660
  • Cash-Out:
    • Primary Only
    • Maximum LTV 65%
    • Maximum Term 20 Years
    • Consolidation of 1st and 2nd lien only
  • PUDs Eligible

FHA Highlights:

  • Primary Homes
  • Fixed Rate Only
  • Purchase, Rate-Term & Streamline:
    • Maximum LTV 96.5%
    • Minimum FICO 660
    • Maximum DTI 50%
  • Cash-Out:
    • Maximum LTV 85%
    • Minimum FICO 660
    • Consolidation of 1st and 2nd lien only
    • Maximum DTI 50%
  • PUDs Eligible

Condos – up to 90% financing

In today’s market, most condos do not qualify for regular Conventional or Government financing. To find out if the condo you want to buy qualifies for FHA, visit the HUD website. Enter the State and County, and under Status select Approved. If you are looking to do a VA loan, go to the VA website and do the search.

If the condo is not on the HUD site, it will not likely be approved for a Conventional loan without a limited review approval. Check the Fannie Mae Approved Project List website.

How do you get a limited review approval? Unless the project is a non-warrantable condo, you put 25% down and that’s it. If you don’t have 25% to put down, you can get a 75% first mortgage, and a 15% second mortgage. Below are some highlights:

  • Loan is a Home Equity Line of Credit
  • No mortgage insurance
  • Maximum combined loan to value of 89.99%
  • Non-occupant co-borrowers not allowed
  • No reserve requirements
  • Gift funds allowed
  • Max housing ratio is 38% and max Debt to Income ratio is 45%
  • 700 minimum middle credit score up to $750,000.00
  • 730 minimum middle credit score between $750,000.00 and $1,500.000.00

To calculate your monthly mortgage payment and cash you will need, use our Loan Estimate tool. Enter the price, taxes and hoa fees, and select the Conventional loan type. Select Include Escrows and Second Mortgage checkboxes. If you want 90% financing, for down payment enter 25%. Select your credit score, enter your interest rate and any discount points or lender credits. Under Second Mortgage Amount enter 15% and the interest rate for Second Mortgage Rate. Calculate.

For more information please contact Bluecastle Lending at 954-866-0000 or info@bluecastlelending.com. Bluecastle Lending is an Equal Housing Lender.

 

 

 

Non-Warrantable Condos

A non-warrantable condo is a condominium property in which the loan is not eligible to be sold to Freddie Mac or Fannie Mae, and as such, mortgage financing for this type of property is considered by most banks to be more “risky.” Freddie Mac and Fannie Mae would consider a condo to be “non-warrantable” if, for instance, the condo:

  • Is in a development which has yet to be completed
  • Is in a development which allows for short-term rentals
  • Is in a development where one person or entity owns more than 10% of all units
  • Is in a development where less than 50% of the occupants in a complex are the owners
  • Is in a development involved in litigation of any kind regardless of whether the building is suing another party, or is the party being sued.

Typically, a condo is considered warrantable if, for instance:

  • No single entity owns more than 10% of the units in a project, including the developer
  • At least 51% of the units are owner-occupied
  • Fewer than 15% of the units are in arrears with their association dues
  • There is no litigation in which the homeowner’s association (HOA) is named
  • Commercial space account for 25 percent or less of the total building square footage
  • Mortgage Loan Solution for Non-Warrantable Condo Borrowers and Self-Employed Borrowers

4 years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu
Loans up to $3 million (minimum $150,000)
Credit scores starting at 660
Up to 90% LTV/CLTV
Owner-occupied and second homes
Non-warrantable condos
Interest-only available
Cash-out available – $500,000 maximum
Full doc and bank statements available
Option to qualify with assets instead of income
1-year tax return program available

  • Hard Equity Loans

Only if you have applied for a Conventional loan and your loan has been denied, or you can’t get any other type of mortgage loan, then this type of loan may be attractive.  These are the “no questions asked” loans for investment properties. It does not matter if you don’t have a social security number, or if you have an open foreclosure, short sale or bankruptcy, or if you can’t show tax returns or pay stubs. The only thing that matter is the loan to value – cannot exceed 70%.

You will have to pay a high-interest until you can qualify to refinance or you sell the property. If some of the above hold true to you, you have 30% to put down, and you are willing to take a two-to-five-year loan with a high interest, then this is the loan is for you.

Real Estate Investors

  • Real Estate Investor Cash Flow Program: Mortgage Loan Solution for Real Estate Investors

No personal income used to qualify
Qualification based on property cash flow (10% above monthly mortgage payment)
2 years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu
Credit scores down to 660
Up to 80% LTV
No DTI restrictions
Must have current mortgage / own a home
1-4 units and condos
No limit on number of properties financed (up to 5 with this program)
Loans up to $1 million
Seller concessions allowed up to 2%
7/1 ARM

  • Asset Qualifier Program: Mortgage Solution for Cash-Rich Borrowers

No employment, no income, no DTI
Up to 75% LTV
5 Years seasoning foreclosure, short sale or bankruptcy
Loans up to $3 million (minimum loan $150,000)
Credit scores 700 or higher
Primary residence, purchase only
Interest only program available
5/1 ARM or 30-year fixed
Non-Warrantable condos considered
All assets must be sourced and seasoned for a minimum of 12 months
Required assets: Borrowers must have at least $500,000 in post-closing assets, recurring monthly debt multiplied by 60 months, funds to close and 6 months reserves

Loans for Self Employed Borrowers

More often than not, self-employed individuals have a hard time obtaining financing due to their low Adjusted Gross Income on their personal 1040 Tax Return.

One of the most common questions we receive get is “How much do I have to make in order to qualify to buy a house?” Our Income Tax tool will easily answer that question instantaneously. As long as you report the minimum Adjusted Gross Income that the tool suggests, and your debt stays the same, you will be able to qualify for a Fannie Mae, Freddie Mac or Ginnie Mae backed loan and get a normal interest rate.

If you are unable to have that kind of Adjusted Gross Income on your tax return, then these Self Employed Mortgage Loans are designed for you.  These loans that are not fit to be sold in the secondary market and do not follow Freddie Mac, Fannie Mae or Ginnie Mae guidelines. Usual loan denials due to unable to verify income for self-employed individuals are no longer an issue. Below are some of our programs.

  • Bank Statement Program: Mortgage Loan Solution for Self-Employed Borrowers

No tax returns required
12-month personal bank statements
24-month business bank statements
Loans up to $3 million
Credit scores down to 600
Up to 90% LTV on Personal and Business with no MI
DTI up to 50% considered
Owner-occupied, 2nd homes and investment properties
2 years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu
Non-warrantable condos considered
Jumbo loans down to 600 score
5/1 ARM or 30-year fixed
No pre-payment penalty for owner-occ and 2nd homes
Seller concessions to 6% (2% for investment)
2 year self-employed required

  • Asset Qualifier Program: Mortgage Solution for Cash-Rich Borrowers

No employment, no income, no DTI
Up to 75% LTV
5 Years seasoning foreclosure, short sale or bankruptcy
Loans up to $3 million (minimum loan $150,000)
Credit scores 700 or higher
Primary residence, purchase only
Interest only program available
5/1 ARM or 30-year fixed
Non-Warrantable condos considered
All assets must be sourced and seasoned for a minimum of 12 months
Required assets: Borrowers must have at least $500,000 in post-closing assets, recurring monthly debt multiplied by 60 months, funds to close and 6 months reserves

For more information please contact Bluecastle Lending at 954-866-0000 or info@bluecastlelending.com

Subprime Loans for Borrowers with Foreclosures, Short Sales and Bankruptcies

Subprime loans are those loans that are not fit to be sold in the secondary market and do not follow Freddie Mac, Fannie Mae or Ginnie Mae guidelines. Usual loan denials due to foreclosures, short sales, and bankruptcies seasonings are no longer an issue. Below are some of our programs.

  • Non-Prime Program: Mortgage Loan Solution for Foreclosures, Short Sales, Bankruptcies and Low Credit Scores 

1 day out of foreclosure, short sale, bankruptcy or deed-in-lieu
Loans up to $1 million
Credit scores down to 500
Up to 90% LTV
DTI up to 50% considered
Owner-occupied, 2nd homes, and investment properties
Non-warrantable condos considered
Jumbo loans down to 500 score
5/1 ARM or 30-year fixed
No pre-payment penalty for owner-occ and 2nd homes
No active tradelines OK with housing history
SFRs, townhomes, condos, 2-4 units
Seller concessions to 6% (2% for investment)

  • Mortgage Loan Solution for Foreclosures, Short Sales, Bankruptcies and 1-Year Tax Return

2 years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu
Loans up to $3 million
Credit scores down to 600
Up to 90% LTV with no Mortgage Insurance
100% gift funds allowed
DTI up to 50% considered
Owner-occupied, 2nd homes, and investment properties
Non-warrantable condos considered
Jumbo loans down to 600 score
5/1 ARM or 30-year fixed
No pre-payment penalty for owner-occ and 2nd homes
Asset depletion available – option to qualify with assets instead of income
SFRs, townhomes, condos, 2-4 units
Seller concessions to 6% (2% for investment)
1-year tax return program available

 

For more information please contact Bluecastle Lending at 954-866-0000 or info@bluecastlelending.com

 

Real Estate Investors

  • Real Estate Investor Cash Flow Program: Mortgage Loan Solution for Real Estate Investors

No personal income used to qualify
Qualification based on property cash flow (10% above monthly mortgage payment)
2 years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu
Credit scores down to 660
Up to 80% LTV
No DTI restrictions
Must have current mortgage / own a home
1-4 units and condos
No limit on number of properties financed (up to 5 with this program)
Loans up to $1 million
Seller concessions allowed up to 2%
7/1 ARM

  • Asset Qualifier Program: Mortgage Solution for Cash-Rich Borrowers

No employment, no income, no DTI
Up to 75% LTV
5 Years seasoning foreclosure, short sale or bankruptcy
Loans up to $3 million (minimum loan $150,000)
Credit scores 700 or higher
Primary residence, purchase only
Interest only program available
5/1 ARM or 30-year fixed
Non-Warrantable condos considered
All assets must be sourced and seasoned for a minimum of 12 months
Required assets: Borrowers must have at least $500,000 in post-closing assets, recurring monthly debt multiplied by 60 months, funds to close and 6 months reserves

  • Hard Equity Loans

Only if you have applied for a Conventional loan and your loan has been denied, or you can’t get any other type of mortgage loan, then this type of loan may be attractive.  These are the “no questions asked” loans for investment properties. It does not matter if you don’t have a social security number, or if you have an open foreclosure, short sale or bankruptcy, or if you can’t show tax returns or pay stubs. The only thing that matter is the loan to value – cannot exceed 70%.

You will have to pay a high-interest until you can qualify to refinance or you sell the property. If some of the above hold true to you, you have 30% to put down, and you are willing to take a two-to-five-year loan with a high interest, then this is the loan is for you.

For information on this program contact us at 954-866-0000 or email us at info@bluecastlelending.com. Bluecastle Lending is an Equal Opportunity Lender

Jumbo Mortgage Loans

The conforming limit, which is the maximum loan that Fannie Mae and Freddie Mac will buy in the secondary market varies by location. In most housing markets it’s $453,100.00, and any mortgage loan higher than that is a Jumbo Mortgage Loan. To qualify for a jumbo mortgage today, you should expect to make a down payment of at least 10 percent for a purchase and document your income.

Bluecastle Lending offers both 30-year fixed jumbo loans and adjustable rate
mortgages. Our Jumbo Loan programs do not include mortgage insurance premiums, saving you even more money. Get an instant mortgage rate quote on our Rates page.

With few exceptions, Jumbo Loan borrowers have to furnish financial records documenting that they earn what they say they earn. We require borrowers to fully document two years of income history and to have credit scores of 700 or higher. If this is not possible, visit our pages for Self-Employed loans and Subprime loans.

Among the most competitive 30-year fixed rates in the industry, Bluecastle Lending offers incentives on all purchase transactions. From primary homes to investment properties, Bluecastle Lending provides jumbo loans up to 90% LTV with no PMI, with clear, hassle-free guidelines.

• Eligible for primary, secondary and investment properties
• FICOs as low as 700
• Up to 90% LTV with no PMI
• Up to 50% DTI with 80% loan to value
• Loan amounts up to $3,000,000
• Fixed rate and ARM loans available

For information on this program contact Bluecastle Lending at 954-866-0000, email info@bluecastlelending.com.  Bluecastle Lending is an Equal Opportunity Lender

Conventional loans – Up to $453,100.00

Conventional mortgages are ideal for borrowers with good or excellent credit. They follow fairly conservative guidelines.

• Borrower credit scores: Minimum 620
• Minimum down payments: Minimum 3% with Home Ready Fannie Mae program or 5% for everything else.
• Debt-to-income ratios: Maximum 49.99% vs 56.99% for FHA and 64.99% for VA.
• Low down payment required (3 percent minimum)
• Mortgage insurance is required for loans exceeding 80 percent loan-to-value however, we have lender paid MI financing. See our No PMI page.
• Conventional mortgage insurance is only monthly or single premium (FHA upfront and monthly premiums, and VA has a similar fee called Funding Fee)
• Conventional mortgage insurance is very credit sensitive but will automatically end at 78 percent loan-to-value. (FHA will stay for the entire life of the loan)
• Conventional loans can cover a higher loan amount; up to $453,100.00 vs. $345,000.00 for FHA. Loan amounts over $453,100.00 become “Jumbo loans”.
• Even though conventional loans may have higher interest rates, their monthly payments may still be lower.

We have excellent Conventional loan rates although most of our clients putting less than 20% down payment will prefer not to pay mortgage insurance and they elect Bluecastle Lending’s No Mortgage Insurance program as the payments are usually lower

For information on this program contact us at 954-866-0000 or email us at info@BluecastleLending.com. Bluecastle Lending is an Equal Opportunity Lender

Veteran affairs loans – VA

A VA loan is a mortgage loan that’s backed by the Department of Veterans Affairs (VA) for those who have  served or are presently serving in the U.S. military. While the VA does not lend money for VA loans, it backs
loans made by private lenders (banks, savings and loans, or mortgage companies) to veterans, active military personnel, and military spouses who qualify.

There are many benefits to a VA loan, but one of biggest benefits is that no down payment is needed to purchase a home. This can make home ownership a reality for active military or veterans who might otherwise not be able to afford it. VA loans are designed for military personnel, veterans, and military families. The list of those who are eligible for this home-buying military benefit include:

•        Veterans
•        Active-duty personnel
•        Reserve  members
•        National Guard members
•        Some surviving spouses

You must also have suitable credit, sufficient income, and a valid Certificate of Eligibility (COE). And you must use the home for your own personal occupancy. Still unsure if you’re eligible? Check the Department of Veterans Affairs website for a detailed list of eligibility requirements for military service members, veterans, and military spouses.

The VA loan program is offers some of the most attractive and flexible loans available, and they are exclusively  for military personnel, veterans and their families. Perhaps the two biggest benefits that make these loans more
affordable than a typical loan are that the borrower typically does not need to make a down payment, and there  is no private mortgage insurance (PMI) requirement.

Here’s a look at the list of benefits, as taken directly from the Veterans Affairs site:

•        No down payment required (unless required by the lender or the purchase price is more than the reasonable value of the property).
•        Negotiable and competitive interest rate.
•        Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least
5 percent and exemption for veterans receiving VA compensation).
•        VA rules limit the amount you can be charged for closing costs.
•        Closing costs are comparable with other financing types (and may be lower).
•        Closing costs may be paid by the seller.
•        No private mortgage insurance premiums are required.
•        An assumable mortgage.
•        Right to prepay your mortgage without penalty.

How Big of a VA Loan Can Veterans & Military Personnel Get?

According to the VA there is “no maximum that an eligible veteran may borrow using a VA-guaranteed loan.”
However, there are county limits that must be used to calculate the VA’s maximum guaranty amount for a particular county. In other words, there’s no limit to how much you can spend on your new home with a VA loan,  but the VA has limits on how much liability it will assume, which can affect the amount of money your lender will  let you borrow.

Generally, eligible veterans or military personnel can get loans up to $417,000 with no money down.

How much are the Closing Costs on an VA guaranteed loan?

Some of your VA loan closing costs may–after being negotiated between buyer and seller–be paid by the seller within the boundaries of the VA loan program’s rules. The borrower also has the option to pay some closing costs out of pocket, which in South Florida they typically are about six percent of the gross selling price.
During the market recession when it was a buyer’s market, we used to get the seller to pay all of the closing  costs. Today in South Florida however, its a seller’s market and this could be very difficult to achieve. This is
one of the reasons we have the CCAP program.

How much cash do I need for a VA loan with the Closing Cost Assistance Program (CCAP)?

The below chart is an illustration of how much a borrower will approximately need as the total cash to close.
This chart was created with the pricing and interest rates on May 11th, 2016. The rate was 4% and the APR was 4.32% (the APR includes the upfront MIP expressed as a finance charge and it does not take into account the funds credited to you)

How much cash do I need with the Closing Cost Assistance Program (CCAP)?

The below chart is an illustration of how much a borrower will approximately need as the total cash to close. This chart was created with the pricing and
interest rates on May 11th, 2016. The rate was 4% and the APR was 4.15%.

Purchase Price 580 Score 600 Score 620 Score 640 Score 660 Score 680 Score 700 Score 720 Score
$150,000.00 $5,098.00 $5,098.00 $3,786.00 $2,661.00 $2,473.00 $2,286.00 $2,2864.00 $1,911.00
$200,000.00 $5430.00 $5,430.00 $3,680.00 $2,180.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00
$250,000.00 $6,702.00 $6,702.00 $4,514.50 $2,639.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00
$300,000.00 $7,549.00 $7,549.00 $4,924.09 $3,000.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00
$350,000.00 $8,282.00 $8,282.000 $5,219.00 $3,500.00 $3,500.00 $3,500.00 $3,500.00 $3,500.00
$400,000.00 $8,995.00 $8,995.00 $5,495.00 $4,000.00 $4,000.00 $4,000.00 $4,000.00 $4,000.00

For information on this program contact Bluecastle Lending at 954-866-0000, email alex@BluecastleLending.com . Bluecastle Lending is an Equal
Opportunity Lender

Federal Housing Administration Loans – FHA

The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders.  It is the largest insurer of residential mortgages in the world, insuring tens of millions of properties since 1934. The federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments

FHA loans are very popular, especially with first-time home buyers because the requirements are less strict than conventional loans. Borrowers can qualify for an FHA loan with a down payment as little as 3.5% and a credit score of 580 or higher. The borrower’s credit score can be between 500 – 579 if a 10% down payment is made.

How long an FHA borrower has to wait to buy again? 

Another advantage of an FHA loan is for borrowers who have undergone a bankruptcy, short sale or a foreclosure. The event seasoning requirement is much shorter than conventional loans.  For Chapter 7 Bankruptcy is 2 years from discharge. For Chapter 13 Bankruptcy is 1 year of payment period with satisfactory performance and permission from the court. For Short Sales and Foreclosures, the seasoning is 3 years from completion.

Mortgage Insurance is Required for an FHA Loan

FHA loan requires two kinds of mortgage insurance premiums: one that can be financed into the mortgage, and the other one in the monthly payment.

Upfront mortgage insurance premium (UFMIP) — this is a one-time upfront monthly premium payment, which means borrowers will pay a premium of 1.75% of the home loan, regardless of their credit score. Example: $300,000 loan x  1.75% = $5,250.00

Annual MIP (charged monthly) — Called an annual premium, this is actually a monthly charge that will be figured into your mortgage payment. The amount of the mortgage insurance premium is a percentage of the loan amount,
based on the borrower’s loan-to-value (LTV) ratio, loan size, and length of loan:

Loan Term LTV Ratio Annual Insurance Premium
30 years 95% or less 0.80%
30 years Over 95% 0.85%

For example, the annual premium on a $300,000 loan with term of 30 years and LTV less than 95 percent  would be  $2,400:  $300,000 x 0.80% = $2,400. To figure out the monthly payment, divide $2,400 by 12 months = $200. So,  the monthly insurance premium would be $200 per month.

How Long Do Borrowers Have to Pay FHA Mortgage Insurance

The duration of your annual MIP will depend on the amortization term and LTV ratio on your loan origination date.  For loans with FHA case numbers assigned on or after June 3, 2013 borrowers will have to pay mortgage insurance for the entire loan term if the LTV is greater than 90% at the time the loan was originated. If your LTV was  90% or less, the borrower will pay mortgage insurance for the mortgage term or 11 years, whichever occurs first.

Term Loan-to-Value (LTV) Ratio Duration
15 years or less 78% or less 11 years
15 years or less 79-89% 11 years
15 years or less 90% or higher Full loan term
Over 15 years 78% or less 11 years
Over 15 years 79-89% 11 years
Over 15 years 90% or higher Full loan term

FHA Loan Limits

The Federal Housing Authority sets maximum mortgage limits for FHA loans that vary by state and county. Instant PQ will let you know the maximum loan amount in your county. In  Broward, Dade and Palm Beach counties, you may be able to get financing for a loan size up to $345,000.00 with a
3.5 percent down payment. Conventional financing for loans that can be bought by Fannie Mae or Freddie Mac are currently at $453,100.00 before it becomes a Jumbo loan.

How much are the Closing Costs on an FHA loan?

Some of your FHA loan closing costs may be financed (like upfront MIP), and some may–after being negotiated between buyer and seller–be paid by the seller within the boundaries of the FHA loan program’s rules. The
borrower also has the option to pay some closing costs out of pocket, which in South Florida with most lenders they typically are about six percent of the gross selling price. However, with Bluecastle Lending your settlement charges are substantially lower, as we do not charge you any fees. You can get an instant estimate by visiting our Loan Estimate page.

During the market recession when it was a buyer’s market, we used to get the seller to pay all of the closing costs. Today in South Florida however, its a seller’s market and this could be very difficult to achieve. This is one of the reasons we have the CCAP program.

How much cash do I need using the Closing Cost Assistance Program (CCAP)?

The below chart is an illustration of how much a borrower will approximately need for everything, including down payment and settlement charges. You can also get an instant estimate by visiting our Loan Estimate page.

Purchase Price 580 Score 600 Score 620 Score 640 Score 660 Score 680 Score 700 Score 720 Score
$150,000.00 $8,962.50 $8,962.50 $8,056.50 $7,119.00 $6,931.50 $6,744.00 $6,744.00 $6,369.00
$11,692.00 $11,692.00 $10,442.00 $9,192.00 $8,942.00 $8,692.00 $8,692.00 $8,192.00
$250,000.00 $14,615.00 $14,615.00 $13,052.50 $11,490.00 $11,177.50 $10,865.00 $10,865.00 $10,240.00
$300,000.00 $17,538.00 $17,538.00 $15,663.00 $13,788.00 $13,413.00 $13,038.00 $13,038.00 $12,288.00
$350,000.00 $20,286.00 $20,286.00 $18,098.50 $15,911.00 $15,473.50 $15,036.00 $15,036.00 $14,161.00

How Do You Get an FHA loan?

The process is simple. You call Bluecastle Lending and speak with a Mortgage Loan Originator. The MLO will ask you a few preliminary questions to make sure you are likely to qualify for a loan before even pulling credit or getting any personal information. Typical questions before filling out a loan application are:
•        Do you know what your credit score is?
•        How much money do you have to buy a house?
•        What price range are you considering?
•        Have you had any short sale, foreclosure, BK, judgments or liens?
•        Are you employed or self-employed?
•        If self-employed, have you filed your 2017 and 2016 taxes and if so, how much is your Adjusted Gross Income?

Alternatively, you can run Instant PQ and get an instant answer as to whether or not you would qualify for the loan.

FHA Loan Interest Rates

Bluecastle Lending interest rates are amongst the lowest mortgage rates in the country, and your 30-year fixed rate will depend on how good your credit score is. The lender contribution could be applied to bring your interest rate
down (substantially), or to pay for your closing costs (substantially). Adjustable rate mortgages are also available through FHA however, unless you are planning on living on the property a very short period of time, we do not
recommend it.

You can also get an instant mortgage rate quote through our automatic pricing engine.