Single-family guaranteed loans must have specific loan terms in order to meet program requirements. Below you can find some of the most important information about the SFHGLP terms to ensure your loan meets the program requirements.
The main formula for the maximum SFHGLP is:
Market Value / .99 = Maximum Loan Amount
Let’s look at some of the specifics before moving on:
The maximum Loan Amount is determined by the applicant’s income and repayment ability, and by the fair market value of the property. **
**Loan to value can exceed 100 percent of the market value when the upfront guarantee fee is financed.
An applicant is permitted to finance reasonable and customary expenses associated with purchasing a home if the total amount financed does not exceed the following limits:
Effective October 1, 2019, the maximum interest rate cap was eliminated.
The lender and the borrower are free to negotiate a mutually acceptable fixed interest rate. That being said, the rate must be locked by the time of loan settlement.
It is important to note that adjustable-rate mortgages, balloon mortgages, loan terms other than 30 years, and negative amortization are all ineligible loan terms for SFHGLP.
If the interest rate is not locked at the time the conditional commitment is issued, or if the interest rate increases prior to loan closing, the lender must make note of the increased rate, provide documentation to support the increase, and resubmit the application in GUS.
In some instances it is important to note:
The required loan terms for qualifying for the SFHGLP are relatively simple. They are as follows:
The FHA, or Federal Housing Administration, provides insurance on loans made by approved lenders. FHA insures these loans on single family and multi-family homes in the United States and its territories. It is the largest insurer of residential mortgages in the world, insuring tens of millions of properties since 1934 when it was created.
Let’s take a look at some of the requirements to be approved for an FHA loan in 2021.
An FHA Loan is a mortgage that’s insured by the Federal Housing Administration. They allow borrowers to finance homes with down payments as low as 3.5% and are especially popular with first-time homebuyers.
FHA loans are a good option for homebuyers who have not yet saved enough for a down payment. Borrowers who have suffered from bankruptcy or foreclosures may qualify for an FHA-backed mortgage.
VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms.
VA-guaranteed loans are available for homes for your occupancy or a spouse and/or dependent (for active duty service members). To be eligible, you must have satisfactory credit, sufficient income to meet the expected monthly obligations, and a valid Certificate of Eligibility (COE).
The IRRRL is a “VA to VA” loan, meaning it can only be done if you have an existing VA guaranteed loan on the property. The IRRRL is generally performed to lower the interest and reduce the monthly payment on the existing VA guaranteed loan.
The NADL program helps Native American Veterans purchase, construct, improve, or re-finance a home on Native American trust lands. Your tribal organization must participate in the VA direct loan program. You must have a valid Certificate of Eligibility (COE)
VA helps Veterans with certain total and permanent disabilities related to your military service obtain suitable housing with either a Specially Adapted Housing (SAH) or Special Housing Adaptation (SHA) grant.
©2021 Capital Mortgage Services of Texas, all rights reserved.
Siwell, Inc. dba Capital Mortgage Services of Texas NMLS 149169
Licensed by the Department of Business Oversight under the California Residential Lending Act
Residential Mortgage Loan Originator: Siwell, Inc. dba Capital Mortgage Services of Texas
Organization NMLS ID: 149169
Residential Mortgage Loan Officer Royce Lewis NMLS ID: 151122
Residential Mortgage Loan Officer Linda Lewis NMLS ID: 151120
CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550.
THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.
Hawaii Borrowers Public Information Notice Requirement
Kansas Licensed Mortgage Company
© 2023 Capital Mortgage.