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Frequently Asked Questions
Down payment is determined by three factors: age of the youngest borrower, the purchase price of the home, and current interest rate.
No, you are allowed to be on title to both homes. You can rent your existing home for cash flow or sell it after you move into your new home. The only disqualifying issue would be if your current home has a FHA mortgage balance. This would require you to refinance into a non-FHA mortgage or sell your home before using the LHL Program. If you own other real estate then your income will need to support the PITI (principal, interest, taxes, and insurance) on existing real estate as well as the property taxes, insurance, and/or condo dues on your new LHL property. After all real estate expenses, installment, and revolving debt is subtracted from income, there must be residual income remaining. This is based on the area you live in and if you are single/married. All items will be verified.
All new construction may require a Certificate of Occupancy (CO) once the home has been inspected and it’s determined to be move-in ready. FHA requires lenders to wait until the CO is issued before a loan application can be taken. The first step is to get a Pre-Approval letter (LHL Golden Ticket) from us prior to going into a contract with the builder. Please make sure to get us in touch with the builder so we can verify everything needed in the contract.
The LHL is a home buying program for those with good credit and enough liquid assets to satisfy the down payment of about 55% of the purchase price, and also have enough left over to comfortably pay for taxes, insurance, and HOA fees.