FHA Loan Documentation: MIP, Gift Funds, and Minimum Property Requirements
FHA loans have unique documentation requirements — MIP calculations, gift fund eligibility for 3.5% down, and Minimum Property Requirements.
What the Lender Requires
- Standard qualifying documentation (income, assets, credit)
- Gift letter and donor bank statements for 3.5% down payment from gift funds
- FHA MIP calculation documentation (upfront 1.75% + annual)
- FHA case number assignment
- FHA appraisal confirming MPRs
- FHA Amendatory Clause signed by all parties
How CTC Processes FHA Loan Documentation Requirements Files
- 01Assign FHA case number
- 02Order FHA appraisal
- 03Review MPRs
- 04Calculate MIP
- 05Confirm gift funds if applicable
- 06Submit to AUS (TOTAL Scorecard)
Common Conditions Related to FHA Loan Documentation Requirements
- FHA Amendatory Clause (must be signed by all parties including seller)
- Repair completion certifications if MPRs required repairs
- Gift fund wire confirmation
- FHA case transfer documentation if switching lenders
- Lead paint disclosure (homes built before 1978)
How CTC Handles FHA Loan Documentation Requirements
FHA is documentation-intensive but CTC processes these files efficiently. The most common FHA conditions are MPR repairs, gift fund sourcing, and Amendatory Clause signatures. CTC tracks all three proactively.
Frequently Asked Questions
Can 100% of the FHA down payment be a gift?
Yes — unlike conventional, FHA allows 100% of the 3.5% minimum down payment to be a gift from an eligible donor. The gift must be documented with a letter and transfer proof.
What are FHA Minimum Property Requirements?
FHA MPRs require safe, sound, and sanitary conditions. Common issues: peeling paint, roof with under 3 years remaining life, inoperative mechanicals, safety hazards.
What is the FHA Amendatory Clause?
A document signed by buyer, seller, and their agents stating the buyer is not obligated to complete the purchase if the property appraises below purchase price. Missing signatures are a very common FHA condition.