FHA Loans

The Federal Housing Administration (FHA) provides mortgage insurance on loans made by FHA-approved lenders. We offer FHA 30 Year, 20 Year, 15 Year and 10 Year Fixed.

Reliable

Credit Scores

Minimum 680 credit score.

(Other lenders may offer lower than this score, Empire limits the score to 600)

Home

Property Types

Single Family Home

Condominium

2 Unit Properties

Why FHA?

 

Generally, Empire does not suggest this loan product since it comes with very expensive upfront mortgage insurance. Usually 1.75% of the loan amount. Also, no matter how much down payment you put on the home, monthly mortgage insurance will always be included.

Down payment is just as low as conforming (which is actually slightly lower at 97% versus FHA 96.5%) for first time home buyers.

The only benefit possibly would be the lower credit score available at 600 (that is the lowest credit score allowable with Empire’s available products). If that were to be the case, we would perhaps suggest working on the score to move it up to the minimum 620 for conforming lending. Well worth it, when you save on the upfront mortgage insurance expense.

Home Purchase

 

Down Payments

Minimum Down Payments are the following:

  • 1-Unit, maximum 96.5% loan to value, 680 credit score.
  • 2-Unit, maximum 96.5% loan to value, 680 credit score.

Mortgage Insurance

There is both upfront & monthly mortgage insurance on this loan. Depending on your transaction, a different % of insurance will be applied. Generally, the upfront insurance is 1.75% of the loan amount.

 

Qualifications

Debt-to-Income ratios are strict, maximum 31% front end ratio (includes only the new loan monthly principle, interest, taxes, homeowner’s insurance, mortgage insurance and HOA dues) divided by gross income. The maximum back end would be 43%, which includes all debt from other properties & your credit report.

Refinance Your Home

 

Equity Required

There is a minimum amount of equity required on a refinance (see below). Also, use FHA Mortgage Limit (by County  to determine your  maximum loan limit.

  • 1-2 units, 97.75%, 680 credit score

 

Cash-Out

VA cash-out is only available on primary residences. The following maximum loan to value is available on these transactions:

  • 1 Unit, 80% financing, 680 credit score
  • 2-Units, 80% financing, 680 credit score

Qualifications

Debt-to-Income ratios are strict, maximum 31% front end ratio (includes only the new loan monthly principle, interest, taxes, homeowner’s insurance, mortgage insurance and HOA dues) divided by gross income. The maximum back end would be 43%, which includes all debt from other properties & your credit report.