FHA Loan Overview

FHA loans cannot exceed the statutory loan limit for the county in which you are purchasing a property. Currently the loan limits range from $271,050 to $341,250 in Ohio, depending on the county. FHA loans require as little as 3.5% down, and are subject to both an Up Front Mortgage Insurance Premium (UFMIP) and Annual Mortgage Insurance Premium (MIP) which is paid monthly. The UFMIP is paid once and is generally financed by adding it to the loan amount. The UFMIP can be paid in cash by the buyer or seller. MIP is similar to PMI, as it is paid monthly. FHA requires that you pay MIP for a minimum of 5 years, after which time it will fall off once you principal loan balance reaches 78% of the purchase price. Credit requirements for an FHA loan are less stringent than requirements for a Conforming Loan.

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