June 11, 2018
FHA Loan-To-Value Limits: More Rules You Should Know
In a previous blog post, we discussed some of the basic loan-to-value ratio rules (LTV) for FHA loans. Your loan-to-value ratio is calculated based on the amount of the required down payment a borrower has to make as part of the FHA mortgage loan transaction. When you buy a home using an FHA mortgage, the loan-to-value ratio can be affected by your FICO scores. A higher down payment requirement means a different LTV than for those who make the lowest possible downpayment on an FHA mortgage loan of 3.5% of the adjusted value of the property. But credit score issues aren’t the only things that can affect a borrower’s LTV on an FHA mortgage to buy a new home. Some FHA loan transactions, under FHA loan policy, require as much | more...