FHA if one of the oldest form of government backed home mortgages. The standard product is called the 203B. This loan requires 3.5% down payment of borrower’s funds. This product requires FHA appraisal, this loan also requires a clear CAVRS this checks to see if anybody in the transaction has debt to the federal government. This includes the builder, borrower, seller, and either real estate agent.
This loan has a 1.75% upfront MI that can be financed into the loan. It has a .85% monthly MI based on 12 months. The monthly MI runs for the length of the loan.
This is also an excellent product for borrowers that have credit scores below 680. As there are very few hits to the interest rate. HomeStar can do an FHA loan down to 580 manually with the same 3 ½% down.
We also provide a program that requires 10% down to scores that reach as low as 500. This is a manually underwritten loan. Requiring reason that the credit score problem had been rectified.