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Archive for 2014

FHA Loans and Student Loan Deferments

November 28th, 2014 by

If applying for FHA and student loans are in deferment until after the closing date, does it have to show a year after the first payment is due? For example, if the payment is due July 1, 2012 does it have to show July 15, 2012 or later?”

This question is addressed in the FHA loan rules spelled out in HUD 4155.1, Chapter 4 Section C. It's covered ... [ Read More ]

FHA Loans and Verifiable Income: Alimony, Child Support, and Maintenance Payments

November 25th, 2014 by

Borrowers applying for an FHA home loan have good reason to consider listing alimony, child support, and maintenance payment income on their loan applications.

Not all wish to have this type of income included in their application data, but when accompanied by proper documentation and when verified by the lender, these types of “non-employment income” can be us... [ Read More ]

Do Government Assistance Payments Count As Verifiable Income?

November 25th, 2014 by

One frequently asked questions about FHA home loans involves government benefits and/or government assistance payments. Can these income sources be used for the purpose of getting an FHA guaranteed home loan?

Under the right circumstances, the answer is yes. It's not automatic–the lender must verify the source of the income and also determine how long that income... [ Read More ]

Can My Spouse Apply Alone For An FHA Loan?

November 24th, 2014 by

If a married couple has an extremely high debt to income ratio, can only one spouse be on the mortgage loan and leave the other spouse off? This is a situation where some spouses may have less credit but double my income and very low debt to income ratio. Is it possible that the spouse can qualify using only their income and credit to qualify for an FHA loan?”
[ Read More ]

Debt To Income Ratio Rules:

November 21st, 2014 by

In the circumstances that one has a large amount of debt and the payments have been paid by another person, IE., A parent, ex-spouse, another person, can that debt not be counted on my debt ratios?

There are two basic factors at work when the lender is reviewing a borrower's debt-to-income ratio. One is the borrower's current debt load compared to the amount of income ... [ Read More ]

Income from a New Job

November 20th, 2014 by

Many FHA loan applicants want to know if taking a new job will affect their chances at FHA loan approval. FHA loan rules are designed to help guide loan officers through the qualification process for a variety of scenarios including those where the borrower may have “projected income” that could be factored into the borrower's debt-to-income ratio.

What do FHA lo... [ Read More ]

Part-Time Employment Income for Income on an FHA Mortgage Loan

November 19th, 2014 by

FHA loan rules include a requirement that the lender verify sources of income and employment. Some types of income may or may not be permitted on the FHA loan application, and FHA loan rules printed in HUD 4155.1 explain what's permitted or not allowed.

One area some borrowers may be concerned with in this area is part time income. Does the FHA allow a lender to veri... [ Read More ]

Does Alimony/Child Support Count As Income?

November 18th, 2014 by

We've been discussing topics this week related to FHA loan rules for income and employment. The participating FHA lender is responsible for verifying an FHA loan applicant's employment and income to make sure it is a stable and reliable source of income.

Not all forms of income can be used on the FHA loan application. Sporadic income that is not consistent income suc... [ Read More ]

Previous Mortgage Housing Obligations and Your Credit

November 18th, 2014 by

When you fill out your FHA loan application paperwork online or in person, it's obvious that part of the qualification process involves having your credit scores examined and your employment verified.
What may not be so obvious is that the lender is also looking for patterns of reliability in areas such as the timely payment of your monthly obligations. Some FHA loan appl... [ Read More ]

Student Loans and Debt-To-Income Ratios

November 17th, 2014 by

When you apply for an FHA loan, your lender must calculate the amount of income you have versus the amount of debt you currently pay on and factor in the amount of your projected mortgage. The amount of debt is compared to your income to determine whether or not you can afford the loan based on FHA guidelines.

In general, borrowers should have less that 40% of their ... [ Read More ]

Down Payments & FHA Mortgage Loans

November 15th, 2014 by

Many people talk about "No Down Payment Loans" and how can I buy a house with "No Money Down"?

So What's the real story with FHA Loans and No Money Down loans?

FHA home loans do not feature a no-money-down option. FHA loan rules state that the minimum required down payment is as follows: “For purchase transactions, the maximum LTV is 9... [ Read More ]

What is the FHA 203(b) Loan Program?

November 14th, 2014 by

If you're new to shopping for a mortgage and the whole process is confusing, you're not alone. Many people feel as they are swimming in the deep end of life and don't know who to trust for information and where to go.

I'm going to help make today's post an FHA for Dummies crash course.

So what is an FHA mortgage? It's easy to get confused by the differen... [ Read More ]

Advice on Buying A Home With an FHA Mortgage

November 13th, 2014 by

If you're thinking about buying a home, now is a very good time to explore your options. Buying a home with an FHA mortgage offers many home buyers an opportunity to get into a home when they don't have another option.

Mortgage loan rates are still very good, and the housing market recovery makes purchasing a home more attractive than ever.

Advice that I wo... [ Read More ]

First Time Homebuyer Requirement

November 12th, 2014 by

One of the common misconceptions about FHA home loans is that you MUST be a first-time home buyer in order to qualify for one. This is not true. You may have state or local homebuyer assistance programs in your area that do require the applicant for that program to be a first time buyer, but FHA loans are open to all qualified applicants.

The real issue in this reade... [ Read More ]

FHA Refinance Loan Options

November 12th, 2014 by

Mortgage rates are attractively low right now. So low that many need to consider refinancing.

Those headlines make some homeowners seriously think about refinancing their FHA mortgages and getting into a lower interest rate and/or lower payments to offset the higher costs of owning a home should the fiscal cliff issue enter a worst-case scenario.

While no ... [ Read More ]