FHA Loans

For Alaska, Hawaii, Guam, and the U.S. Virgin Islands, limits are adjusted to account for a higher cost of living. These areas are referred to as _______

"special exception areas,"

FHA loan limits are divided into lower-cost areas, referred to as ______ and high-cost areas, referred to as ______

"the floor," and "the ceiling."

The amount of UFMIP is ___& of the base loan amount

1.75%

a mortgage must be made by an FHA-approved lender and the amount of the mortgage must be the lesser of:

115% of the median house price in an area, or 150% of the national conforming loan limit of $548,250

Seller concessions for FHA loans are limited to_____ of the sales price.

6%

MIP is limited to 11 years when the original LTV ratio for the loan is less than or equal to:

90%

MIP is required throughout the full loan term when the LTV ratio is greater than

90%

FHA loan benefits

Low down payment, fee limits on closing costs (cannot be more than 1% loan amount) more lenient underwriting requirements

Standards, requirements, and policies for FHA loans are compiled in HUD's ________ Handbook

Single Family Housing Policy Handbook

Borrowers cannot secure an FHA loan without paying:

Upfront Mortgage Insurance Premiums (UFMIPs), and Annual Mortgage Insurance Premiums (annual MIPs)

The Federal Housing Administration does not make, buy, or sell loans; it ____ loans.

insures

HUD uses ______ to announce changes in policy.

mortgagee letters