VA/FHA Loans

VA Guidelines

VA Loans

  • Guaranteed by the Department of Veterans Affairs
  • Borrower must be a current or former member of the military
  • Receive a Certificate of Eligibility
  • Loan amount determined by the Entitlement found on Certificate

VA Funding Fee

  • Non-refundable
  • Similar to FHA UFMIP
  • 2.15% for initial loan, active duty
  • 2.4% for initial loan, reserve
  • 3.3% for refinancing, active duty and reserves
  • No monthly MI; 100% of the value

Download VA forms

Request for Certificate of Eligibility
Nearest Living Relative Statement

FHA Guidelines

FHA Loans

  • FHA Loans are Loans made by typical lenders, but INSURED by the federal government through FHA. FHA loans are only allowed on owner occupied, primary residences and carry two types of mortgage insurance.
  • UFMIP – Up Front Mortgage Insurance Premium is 2.25% of the base loan amount.
  • Monthly mortgage insurance – .5% of the loan amount annually for LTV’s of 95% or less and .55% for other LTV’s on loan terms greater than 15 years.
  • For mortgages with terms greater than 15 years, mortgage insurance is mandatory regardless of the LTV.
  • Borrower must carry mortgage insurance for at least 5 years. Once 5 years have lapsed, and the LTV reaches 78%, MI will be dropped.
  • Debt to income ratios for FHA loans are:
    • 31% Front end debt ratio
    • 43% Back end debt ratio
    • Maximum LTV for FHA loans is 96.5%