Common questions

Yes. A minimum 3.5% down payment has to be documented. If your file has no exceptions, that 3.5% is the only amount verified before closing. If there is an exception in the file, all cash to close and reserves get verified in your account, plus a letter explaining where the funds came from. Gift funds are acceptable for closing but not for reserves, and a gift of equity is not permitted. (Matrix 3.7, 3.7.1, 3.7.3)

The published standard is 580 or higher, using the middle of three or the lower of two from a tri-merged bureau, with at least two tradelines showing 24 months of history. Below 580, or with no score at all, the file goes to an exception with strong compensating factors. That is a real path and people do get through it, but it is not automatic and nobody should promise you it is. (Matrix 3.5, 3.5.1)

Yes. Non-permanent resident aliens are eligible with an ITIN and documented proof of ability to repay. DACA is explicitly eligible. If you are a W2 employee with an ITIN and a third-party Social Security number appears on your W2 or pay stubs, three months of bank statements are required, and net income deposits for ITIN wage earners may be grossed up. There is also a separate EEP EAD program for Employment Authorization Document holders. (Matrix 3.4, 3.9.1)

The FHA first mortgage is a 30-year fixed rate with full amortization. Your total monthly payment can still change, because property taxes and homeowners insurance change and your payment moves with them, the same as any escrowed mortgage. (Matrix 3.2.1)

This is an owner-occupied program and the home you live in has to be your primary residence. There is one real exception: if the home has more than one unit, the vacant unit can be rented, and that rent even counts toward qualifying income at 75% of the market value assessed by the FHA appraiser. Any transfer, sale, or assignment of the agreement needs written consent. (Matrix 3.2.1, 3.9.9)

When you take title, and there are three ways to do that: assume the FHA loan from the agency, refinance into your own financing, or pay off the option or purchase price. Until then the agency holds title and you hold an equitable interest in the property. The Guidelines state this directly. (Guidelines section 1)

You do. The Guidelines say the program is unique in that there is no shared appreciation or shared equity once the underlying option or purchase price is paid. Your price was locked when the contract was signed, so an increase in value belongs to you. The reverse is also true: if values fall, the locked price works against you. (Guidelines section 1)

Arrive Home requests and selects the hazard insurance for the property, and TRHEEA is listed as the named insured, not you. Your own renter's insurance is optional. If you take it, the deductible cannot exceed $1,000 and it has to be proven paid before closing. If you decline it, you sign a Renter's Insurance Coverage Waiver Disclosure. (Matrix 4.18, 3.14, 3.14.1)

The contract is subject to you qualifying for and executing the seller financing agreement. If your circumstances change and you no longer qualify, or you refuse to execute the final contract, the purchase agreement is void, and the maximum liability for the agency's non-performance is forfeiture of the earnest money. (Matrix 3.17.1)

One to two units, as your primary residence. Single family, PUD, townhome, attached, detached, modular, and double-wide manufactured all work. Condos work with FHA approval, and spot approval is allowed. Not eligible: three or more units, second homes, investment properties, co-ops, single-wide manufactured, and any community that restricts by age, race, gender, or leasing terms, which includes 55 and older communities. (Matrix 3.3.1, 3.3.2)

No. Lenders who wish to participate must be approved as a correspondent of Arrive Home. The guidelines cover correspondent eligibility, FHA Direct Endorsement requirements, maintaining eligibility, renewal, performance, and termination. (Matrix Other Notes, Guidelines section 2)

Total origination and Section A fees may not exceed 3% of the purchase price, and discount points that are not bona fide count against that limit. Charges on the seller financing agreement that benefit the originator beyond what the agency charges must be at or under 1% of the total FHA loan amount, and they appear as a Program Participation Percentage line on the Initial Homebuyer Cost Disclosure. That fee cannot be added after the Clear to Close. (Matrix 3.15.2, 3.15.3)

Same price, same terms, cash at closing. The difference is that the buyer named on the deed is the agency rather than your buyer, through an addendum that assigns the purchase agreement. A completed Seller's Disclosure is required. (Matrix 3.1, 3.1.1)

No. Inspections can never be waived as part of the purchase contract. Every property listed in C2 through C6 condition requires an independent inspection, and major defects must be repaired before closing. Write the offer accordingly. (Matrix 3.13.3, 3.12.1)