THE ELIGIBLE PROPERTY MUST BE AN ELIGIBLE HECM PROPERTY. CALL RON STARLING AT 352-665-1300 TO MAKE SURE YOUR PROERTY QUALIFIES.NEW CONSTRUCTION MUST BE COMPLETED AND YOU NUST OCCUPY THE PROPERTY WITHIN 60 DAYS OF CLOSING. IN THE CASE OF FHA INSURED PURCHASE MORTGAGES, THE MAXIMUM CLAIM AMOUNT WILL BE CALCULATED AS THE MINIMUM OF THE FOLLOWING:
1.) APPRAISED VALUE
2.) SELLING PRICE
3.) FHA'S MORTGAGE LIMIT FOR A SINGLAE FAMILY RESIDENCE
COUNSELING IS REQUIRED PRIOR TO OPENING ESCROW. REQUEST A PRE-COUNSELING PACKET
AND COUNSELOR LIST BEFORE MAKING YOUR OFFER. A COUNSELING CERTIFICATE MUST BE ON FILE BEFORE THE LOAN PROCESS CAN BE BEGIN. ALL BORROWERS, NON-BORROWING SPOUSES AND ATTORNEY'S -IN-FACT MUST RECEIVE COUNSELING PRIOR TO OPENING ESCROW.ANY PURCHASE AGREEMENT OR CONTRACT OF SALE MUST INCLUDE:
1.) A FHA AMENDMENT CLAUSE
2.) A FHA REAL ESTATE CERTIFICATION
3.) A CONTRACT FOR SALE- FULLY EXECUTED WITH SIGNATURES OF ALL PARTIES AND ALL AMENDMENTS SIGNED AND INITIALED. IT IS RECOMMENDED TO INCLUDE AS A MORTGAGE CONTINGENCY. HOME INSPECTIONS BY A QUALIFIED INSPECTOR PRIOR TO SIGNING A CONTRACT IS RECOMMENDED. REPAIRS OR RHABS ALLOWS THE BUYER TO NEGOTIATE A PURCHASE PRICE BASED ON NEEDED REPAIRS OR REHABS.
4.) THE CONTRACT MUST INCLUDE LANGUAGE INDICATING THE SELLER IS RESPONSIBLE FOR PAYING AND COMPLETING ALL REPAIRS PRIOR TO CLOSING.
5.) CLOSING MUST OCCUR IN THE SETTLEMENT AGENTS OFFICE.
REQUIRED DOCUMENTATION:
1.) COUNSELING CERTIFICATE- ORIGINAL MUST BE SIGNED AND DATED
2.) YOU MUST PRESENT LEGIBLE COPY OF A SOCIAL SECURITY OR MEDICARE CARD
3.) PHOTO ID'S THAT ARE ACCEPTABLE
4.) DRIVERS LICENSE OR SENIOR ID SHOWING DATE OF BIRTH
5.) COMPLETE COPY OF LIVING TRUST AGREEMENT, NOTARIZED IF PROPERTY IS TO HELD IN A LIVING TRUST.
6.) HOMEOWNERS INSURANCE POLICY AND FLOOD POLICY IF REQUIRED
ACCEPTABLE FUNDS AND DOCUMENTATION:
1.) INELIGIBLE SOURCES INCLUDE: BRIDGE LOANS BUILDER INCENTIVES, CLOSING COSTS ASSISTANCE, CREDIT CARD ADVANCES, DOWN PAYMENT ASSISTANCE PROGRAMS, GIFTS OR PERSONAL PROPERTY GIVEN BY THE SELLER OR ANY PARTY, INTEREST RATE BUYDOWNS, LOAN DISCOUNT POINTS, SELLER CONCESSIONS OR FINANCING OR LOANS AGAINST BORROWERS ASSETS
DOWN PAYMENT REQUIREMENTS ARE HIGHER THAN TRADITIONAL MORTGAGES SINCE THERE MUST BE EQUITY AVAILABLE FOR INTEREST TO ACCRUE THE OWNER'S LIFETIME SINCE NO MONTHLY PAYMENTS ARE REQUIRED. IF THE DOWN PAYMENT IS FROM THE BANK OR AN INVESTMENT HOUSE, THREE MONTHS OF DOCUMENTATION MUST BE SHOWN ON THOSE ACCOUNTS.
2.) ALL GIFTS RERQUIRE A GIFT LETTER TO SHOW EVIDENCE THE DONOR'S ABILITY TO PROVIDE THE MONEY FROM SEASONED FUNDS AND EVIDENCE TO SHOW FUNDS HAVE BEEN TRANSFERRED TO THE BORROWERS ACCOUNT.
3.) IF THE SOURCE OF FUNDS IS FROM THE SALE OF THE PRIMARY RESIDENCE OR OTHER PROPERTY AND THE SALE OCCURS ON THE SAME DAY AS CLOSING, A COPY OF THE EXECUTED HUD1 AND CASHIER'S OR CERTIFIED CHECK, EVIDENCING THE SALE, MAY BE USED TO VERIFY THE SOURCE OF FUNDS.
4.) DOWN PAYMENT WILL BE DETERMINED BASE ON THE YOUNGEST BORROWER, CURRENT EXPECTED INTEREST RATE AND THE MAXIMUM CLAIM AMOUNT OR APPRAISED VALUE. VALUE WILL BE BASED ON THE LOWER OF THE ACTUAL SALES PRICE, APPRAISED VALUE OR THE FHA MAXIMUM CLAIM AMOUNT.
IT IS ESSENTIAL THAT THE BUYER, REAL ESTATE AGENT AND RON STARLING WORK CLOSELY TO
PROVIDE A SMOOTH AND ORDERLY TRANSITION. PLEASE CONTACT RON STARLING AT 352-665-1300 FOR MORE INFORMATION.
