FHA Mortgage Loans in Dayton, Ohio | Carlos Scarpero, Mortgage Loan Officer in Dayton, Ohio, NMLS #1674385

FHA Mortgage Loans in Dayton, Ohio

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Use one of our quick & easy tools to find out what you qualify for.

Looking for a mortgage program with easy credit qualification and great rates? 

Take a look at FHA mortgage loans!

Here are some of the benefits of using a FHA mortgage loan program for your next home purchase.

Credit Score Requirements

In most cases, the minimum score for a FHA mortgage is 580. Sometimes, we can approve people with as low as a 550 score with an additional down payment. Most mortgage lenders, including PRMG, pull a tri merge report and use the middle score. This score is a different type of score than the one you will see with Credit Karma and may vary as much as 30 points.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is allowed on your credit report when applying for a FHA mortgage. However, it needs to be discharged for a minimum of 2 years.

Chapter 13 Bankruptcy

FHA allows mortgage approval with a Chapter 13 bankruptcy as long as it's at least one year from the file date. If the bankruptcy has not yet been discharged, court approval is required. Additionally, manual underwriting and special scrutiny is required if it has been less than 2 years after the Chapter 13 bankruptcy discharge.

Foreclosure

FHA allows you to have a foreclosure on your credit report. However, it must have been at least 3 years since the date the sheriff filed the deed with the county. Sometimes, this can be weeks or months after the actual Sheriff's Sale. Deed in Lieu, where you just deed the property to the mortgage company falls under this same requirement.


​​​​Debt Ratio

FHA also allows a debt ratio of up to 56.9%. This is way higher than other mortgage programs allow and one of the benefits of using FHA mortgage financing. 

Down Payment

You can qualify for an FHA mortgage with as little as 3.5% down with a 580 score or 10% down with a 550 score.

Gift Funds

FHA allows you to use gift funds from relatives for some or all of your down payment and closing costs. But, it needs to be well documented. Reach out to me for details on how to do this correctly.

Non Occupying Co Borrower

Have low income? Get a relative who is not going to live in the property to be a non occupying co borrower. Keep in mind that both the non occupying co borrower and the occupying borrower need to have a credit score that qualifies. We use the lower score for qualification purposes.

Chargeoffs

It is possible to get approved for FHA financing with chargeoffs on your credit report. These do not need to be paid back before closing.

Non Medical Collections

Any unpaid collection account needs to have a payment plan or be paid off before closing. If not, 5% of the unpaid collection balance will be used toward your debt ratio calculation. If your total unpaid collections are $2000 or less, this requirement is waived.

Medical Collections

Medical collections are ignored in debt ratio calculations and do not need to be paid off before closing.

Installment and Credit Card Late Payments (Non Mortgage)

It is possible to get approved for FHA mortgage financing with installment and credit card lates on your credit report. 

Mortgage Late Payments

You can't have more than 2x30 mortgage lates in the past 12 months when applying for an FHA loan. 

Student Loans

Student loans have special rules when you are applying for FHA financing. When you are on deferment or using income based repayment, 1% of the outstanding loan amount is used for qualifying purposes. Additionally, delinquent student loans that are charged off to the government need to be settled or refinanced.

Automated vs Manual Underwriting

When applying for a FHA mortgage, the file is submitted to FHA's approval program called Desktop Underwriter (DU) to make a credit decision. This program takes into account the credit score, the debt ratio and savings (called reserves in the lending industry) to make a yes or no credit decision. It's very possible to have a score over 580 and be under the debt ratio requirements but still get declined, especially if it's close in both areas. In some cases, manual underwriting can be utilized when special circumstances exist that DU did not pick up the full borrower picture.

Refinancing

You can refinance a different type of mortgage loan to an FHA mortgage loan. FHA to FHA refinancing, which is called streamline refinancing, can be done with lower closing costs. Additionally, if you own a property with equity, you can do a cash out refi to pay down debts or improve the property. However, with a cash out refi, you are limited to 85% of the property's appraised value.

Loan Limits

In the Dayton metro area and most of Ohio, the FHA maximum loan amount is $294,515. However, you can always put more money down if you are buying a more expensive property and want to use FHA mortgage financing. We also offer other mortgage programs to borrowers that are over the FHA loan limit. Please reach out to discuss your options.


Overlays

Overlays are additional credit requirements over and above what FHA requires. We do not have overlays. We do all of our underwriting at FHA minimum rules.


Serving Dayton, Ohio and the Miami Valley Region

We are a FHA approved lender that serves Dayton, Ohio and the entire Miami Valley region. Get to know me and the entire PRMG team to get your FHA loan closed quickly.

Have any questions? Please do not hesitate to reach out at 937-572-3713.

Here are some of the most common Dayton area communities that we serve (partial list):

Montgomery County

Brookville
Centerville
Clayton
Dayton
Englewood
Germantown
Huber Heights
Kettering
Miamisburg
Miami Township
Moraine
Oakwood
Riverside
Springboro
Trotwood
Union
Vandalia
Washington Township
West Carrollton
Carlisle
Farmersville
New Lebanon
Phillipsburg
Verona

Greene County

Beavercreek
Bellbrook
Fairborn
Kettering
Xenia
Bowersville
Cedarville
Clifton
Jamestown
Spring Valley
Yellow Springs

Warren County

Franklin
Lebanon
Loveland
Mason
Middletown
Monroe
Springboro
Villages
Blanchester
Butlerville
Carlisle
Corwin
Harveysburg
Maineville
Morrow
Pleasant Plain
South Lebanon
Waynesville

Preble County

College Corner
Camden
Eldorado
Gratis
Lewisburg
New Paris
Verona
West Alexandria
West Elkton
West Manchester

Clark County

New Carlisle
Springfield
Catawba
Clifton
Donnelsville
Enon
North Hampton
South Charleston
South Vienna
Tremont City

Darke County

Greenville
Ansonia
Arcanum
Bradford
Burkettsville
Castine
Gettysburg
Gordon
Hollansburg
Ithaca
New Madison
New Weston
North Star
Osgood
Palestine
Pitsburg
Rossburg
Union City
Versailles
Wayne Lakes
Yorkshire

Miami County

Piqua
Tipp City
Troy
Union
Villages
Bradford
Casstown
Covington
Fletcher
Laura
Ludlow Falls
Pleasant Hill
Potsdam
West Milton

Butler County 

Fairfield
Hamilton
Middletown
Monroe
Oxford
Trenton
Sharonville
Villages
College Corner
Jacksonburg
Millville
New Miami
Seven Mile

Champaign County

Urbana
Christiansburg
Mechanicsburg
Mutual
North Lewisburg
St. Paris
Woodstock

Shelby County

Sidney
Anna
Botkins
Fort Loramie
Jackson Center
Kettlersville
Lockington
Minster
Port Jefferson
Russia

Logan County

Bellefontaine
Belle Center
De Graff
Huntsville
Lakeview
Quincy
Ridgeway
Rushsylvania
Russells Point
Valley Hi
West Liberty
West Mansfield
Zanesfield

Auglaize County

Saint Marys
Wapakoneta
Buckland
Cridersville
Minster
New Bremen
New Knoxville
Waynesfield

Clinton County

Wilmington
Blanchester
Clarksville
Lynchburg
Martinsville
Midland
New Vienna
Port William
Sabina

Your city not on the list? I can still help! Please do not hesitate to reach out at 937-572-3713.