New FHA Loan Requirements 2022

Are you a first time home buyer interested in buying a house using an fha loan in the 2022 housing market? What are the most recent FHA loan requirements? In this video, we discusses fha loans and the fha loan requirements 2022 like downpayment, credit scores, mortgage insurance as well as employment and income when buying a home.

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NEW 2022 FHA LOAN LIMITS -

Low Cost Areas:
One-unit: $420,680
Two-unit: $538,650
Three-unit: $651,050
Four-unit: $809,150

High Cost Areas:
One-unit: $970,800
Two-unit: $1,243,050
Three-unit: $1,502,475
Four-unit: $1,867,275

What is an fha loan? An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan that is provided by an FHA-approved lender.

➡ What is fha mortgage insurance? Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requires both upfront and annual mortgage insurance for all borrowers, regardless of the amount of down payment.

➡ What is the current upfront mortgage insurance premium for fha loans? The UPMIP is currently at 1.75% of the base loan amount. This applies regardless of the amortization term or LTV ratio.

➡ How do you calculate the monthly mortgage insurance premium for an fha loan? Purchase Price x Percent of Amount Financed x 1.0175 x .0085 / 12

Example Below using a $350,000 purchase price putting 3.5% down:
$350,000 x 96.5 = $337,750
$337,750 x 1.0175 = $343,660
$343,660 x .0085 = $2,921.11
$2921.11 / 12 = $243.43 / month

FHA loan 2021 requirements

✅FICO® score at least 580 = 3.5% down payment.
✅FICO® score between 500 and 579 = 10% down payment.
✅MIP (Mortgage Insurance Premium ) is required.
✅Debt-to-Income Ratio less than 57%. (Actually you can go much higher than this)
✅The home must be the borrower's primary residence.
✅Borrower must have steady income and proof of employment.

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