Q&A - April 25, 2016

A brief overview of new FHA rules and how they affect your clients.

Non-Occupying Co-Borrowers: Are there any suggestions for marketing to FHA clients that have viable non-occupying co-borrowers?

[Download Mortgage Talking Points™ flyers, FHA – Using Non-Occupying Co-Borrower Income to Qualify for an FHA Loan.] Answer: Yes, MortgageCurrentcy™ has a new Mortgage Talking Point™ available called, FHA – Using Non-Occupying Co-Borrower Income to Qualify for an FHA Loan. Non-occupying co-borrowers on FHA can be the magic answer you need! Call Me! Copyright – 2016 [...]

2018-10-16T16:58:24-05:00November 3rd, 2017|

Landlord to Renter Sale: What is the exception for documentation, when a tenant is purchasing the property they are currently renting?

Answer: The exception (below) does not require cancelled checks to verify occupancy or the rental status. It allows a lease to be used to prove that the conditions are met. As with all files, the underwriter has the last say on documentation. But it appears that a lease would be adequate for documentation and compliance [...]

2017-12-27T13:02:30-05:00November 3rd, 2017|

Streamline Refinance – Occupancy Documentation: Is it a new requirement to prove occupancy on an FHA Streamline?

Answer: FHA now requires that occupancy be documented for Streamline Refinances. One way to do this is to get a copy of a utility bill. Reference: 4000.1, II, A, 8, d, vi, (C)Streamline Refinances (2) Borrower Eligibility (a) Occupancy Requirements (i) Standard Streamline Refinances may be used for Principal Residences, HUD-approved Secondary Residences, or non-owner [...]

2017-12-27T13:02:30-05:00November 3rd, 2017|

Gift to Pay off Debt: Can a borrower receive a gift from an immediate family member who has borrowed the money to pay off the borrower’s outstanding debt?

Answer: Yes. Gift funds can be used to pay off debt, and they can be borrowed for FHA loans. Gift funds do not have a specific designation as to their use. They are just a source of funds that must be documented to identify that they were derived from an acceptable source. See the guideline [...]

2017-12-27T13:02:30-05:00November 3rd, 2017|