Q&A - January 25, 2016

Condo Approvals: What are the guidelines for condo approvals for USDA loans?

Answer: USDA simply states that the condominium project must be in compliance with HUD/FHA, VA, Fannie Mae, or Freddie Mac regulations. They leave it up to the lender to make that determination and provide that certification. Download – USDA RD 3555 Condominium Regulations. Copyright – 2016 – MortgageCurrentcy.comA subscription is required to access this content—please [...]

2017-12-27T13:09:33-05:00October 28th, 2017|

Condo Approval List: Are there 2 separate lists for approved condos on FHA loans, or am I just using the system incorrectly?

Answer: You can finance an approved condo (that still meets the FHA criteria) regardless of the approval method as long as the approval has not expired. I’m not sure where you are seeing “2 lists”. When I go to the HUD approval site https://entp.hud.gov/idapp/html/condlook.cfm. I see the option to run lists by several search criteria [...]

2017-12-27T13:09:34-05:00October 28th, 2017|

Occupying Borrower-No FICO: Will FHA allow a parent as a non-occupant co-borrower to help their son (who just graduated from college with no credit score) to apply for a loan?

[Download Mortgage Talking PointsTM flyer, FHA How to Establish Credit With Out a Credit Score!] Answer: Your lock desk is probably having trouble because most investors require all borrowers to have a credit score. While FHA does not have this requirement (see the instructions for establishing non-traditional mortgage credit below), FHA does require that a [...]

2018-10-16T18:55:20-05:00October 28th, 2017|

Multi-Family – First-Time Homebuyer: My underwriter has told me that a First-Time Homebuyer is NOT eligible to purchase a 3-4 Family Home with FHA. Is that true?

Answer: Not allowing a First-Time Homebuyer to purchase a 3-4 unit property is definitely an overlay to FHA. They have no such prohibition. FHA allows first-time homebuyers to purchase a 2-4 family home as their first home. To summarize the unique 3-4 unit purchase requirements, they are as follows: 3 months of reserves are required [...]

2017-12-27T13:09:34-05:00October 28th, 2017|