The FHA 203(b) Loan Program - STM Partners

Overview
Features and
Benefits
Product
Summary
Features and benefits of the FHA mortgage include the following:
Features Benefits
Fixed Rate programs are available. Flexibility in accommodating a
FHA fixed rate Jumbo loans are
available.
Seller can pay up to 6% of sales price
toward closing costs, prepaids, and
interest buydowns.
Ratios of 31%/43% for loans requiring
borrower’s needs or preferences.
The surge in higher conforming loan
amounts is a great opportunity to help
make homeownership more affordable
for the borrower.
Borrower needs less cash for the
transaction.
traditional underwriting.
More borrowers can qualify for an FHA
loan.
100% gift allowed for down payment with Gift funds are considered as borrowers
no money from buyer required.
own funds to apply toward the required
three and one half percent (3.50%)
investment.
AUS Underwriting is permitted on FHA AUS allows for less documentation and
loans.
easier borrower qualification.
No reserves are required on 1-2 unit Borrowers need less cash to qualify.
properties.
100% FHA financing through Allows more borrowers to purchase
FHA/SunTrust Approved Non-Profits. home without having established
No income-limit restrictions in qualifying.
savings.
Borrowers are not limited to wages
under a set amount for their area.
Cash out refinances may be permitted Borrowers may use FHA’s easier
up to an 85% LTV.
qualifying guidelines with less equity
remaining in their homes.
Streamlined Refinances with and without
appraisals.
Less cost to borrowers.
FHA loans are assumable by credit- More attractive for future resale if the
qualified buyers.
borrower plans to relocate or move up
to a larger home in the future.
General Information
This product description describes SunTrust’s Federal Housing Administration’s
(FHA’s) mortgage programs for Section 203(b), basic 1-4 family, and 234
Condominiums. The FHA 203(b) and 234(c) mortgages are insured by the Department
of Housing and Urban Development (HUD). This offers borrowers the opportunity to
obtain a mortgage when they may not qualify under conventional guidelines.
Continued on next page
Section 2.22 July 27, 2012
FHA 203(b) Loan Program Page 2 of 217
Correspondent Seller Guide