FHA

Did you know that FHA requires a lender to use the most recent year overtime or bonus IF the overtime or bonus has decreased from the previous year by 20% or more? This can make a big difference if your lender does not know this fact and is averaging the income instead.

Related Article Title:  FHA – Declining Overtime Income Calculation:  What are the rules for averaging overtime income if that income shows a decline from the previous year? Answer: If the Overtime or Bonus Income from the current year decreases by 20 percent or more from the previous year, you must use the current year’s income. Reference: v. Overtime and [...]

2019-04-21T18:26:41-05:00April 25th, 2019|FHA, Social Media Posts|

If a mortgage is not reported to the credit bureau, we can document the borrower’s payment history by getting a verification of mortgage from the lender.

Related Article Title:  FHA – Mortgage Not Showing on Credit Report:  Does FHA require a VOM & 12 months cancelled checks when the mortgage does not show on the credit report? Answer: FHA only requires a VOM from the servicer and has no special stipulations when the servicer is a private lender when underwriting with [...]

2019-04-21T18:36:17-05:00April 25th, 2019|FHA, Social Media Posts|

Knowing what is expected from a gift donor is important to prevent any last-minute issues right before closing. All of my clients receive counsel regarding the documentation the gift-giver will need to provide at the time of application to avoid any problems. Trust me with your business!

Related Article Title:  FHA – Donor Gift Funds – Alternative to Bank Statement:  Will FHA accept a statement from the donor’s bank letterhead with the account number, owner of account, and a statement that the balance is greater than “X” which is the amount of the gift? [Gift Funds and Gift of Equity Chart] Answer: [...]

2019-04-21T18:38:32-05:00April 25th, 2019|FHA, Social Media Posts|

Curious as to why an underwriting system would approve an FHA loan and then require it to be manually underwritten? I have a list of common “triggers” that cause this, so comment below for a copy!

Related Article Title: FHA – Manual Underwriting Requirements:  I received an “Accept” from TOTAL, but now my underwriter is telling me the file must be manually underwritten. Is this correct? [NEW – FHA Manual Underwriting Class] [NEW FHA Manual Underwriting Chart] [MTP™ What Triggers a Manual Underwriting?] Answer: I don’t have your specific file circumstances, [...]

2019-04-21T18:58:32-05:00April 25th, 2019|FHA, Social Media Posts|

Did you know that a real estate agent can contribute to the borrower’s closing costs? Sometimes it is just that little bit of help that makes a sale happen. PM for details!

Related Article Title: FHA – Listing Agent Closing Cost Assistance:  Can a listing agent contribute to the buyer’s closing costs if we stay within the IPC [Interested Party Contribution] guidelines?  [Interested Party Contribution Chart] Answer: Yes.  The selling agent can contribute to the buyer’s closing costs as long as the contribution complies with the Interested [...]

2019-04-21T18:24:13-05:00April 25th, 2019|FHA, Social Media Posts|