Articles Tagged With: FHA Loan Questions

February 23, 2015

Getting Started With FHA Loans: A Reader Question

A reader asks, “Im interested about information about FHA im a single mother also wanted to know if any help for military Mom my son is sergeant in the Marines im tired of living in apartment please help.” We get many comments/questions just like this and in every case our answer is the same–there is definitely help available from the FHA, and they do have programs designed to assist newcomers to the FHA loan process. The FHA official site is a great place to begin–consider what the FHA loan official site says about getting started with an FHA loan on the page titled, “Let FHA Help You”: “FHA loans have been helping people become homeowners since 1934. How do we do it? The Federal Housing Administration (FHA) – which is | more...

February 20, 2015

FHA Loan Rules Following Short Sales: A Reader Question

By Joe Wallace

A reader asks, “We (had a)Bankruptcy and then a short sale 2 years later. We never re-affirmed the mortgage but it was sold to another company. The original lender reported us discharged, no late payments, but the second company reports us 60 days delinquent, settled for less than owed. When can we apply for a new mortgage? Do we go from the Bankruptcy discharge or the short sale? Do we qualify for the “no late payments” program with less waiting time? We can’t get anyone to give us a straight answer.” The answer may depend on lender standards. FHA loan rules do permit a borrower to apply for a new loan following a short sale depending on circumstances but being current on the mortgage loan at the time of the | more...

February 19, 2015

Is It Too Early To Apply For A New FHA Loan? A Reader Question

By Joe Wallace

A reader asks, “We Were discharged and our chapter 13 was completed in Dec of 2014… Our Credit scores are already in the 700′s and we want to sell our current home (never a late payment) and purchase another with a huge down payment from the equity in our current home + some savings. Is it to early to apply for a FHA Loan?” FHA loan rules say that in general, a lender may consider a borrower for a new FHA home loan following a Chapter 13 bankruptcy IF the borrower has made reliable payments on the plan created by the Chapter 13 bankruptcy for a period of one year. Eligibility is not automatic–those payments must be verified and the applicant must have written permission from the court to apply | more...

February 18, 2015

FHA Loans and Other Major Credit Applications: A Reader Question

By Joe Wallace

A reader asks, “I was hoping to get an FHA loan but I was wondering if my father could cosign? I was also wondering if it would be feasible of me to get a new car. (My current vehicle is giving me serious problems)” FHA loans do permit non-occupying co-borrowers and co-signers. Talk to your loan officer about lender standards in this area, but in general when a family member co-signs or co-borrows there are procedures and considerations. FHA loan rules say that in cases where the LTV exceeds 75%, a loan with a non-occupying co-borrower is limited to a single unit property. The other part of the reader question isn’t quite clear–is the reader asking if the FHA loan can include the purchase of a vehicle? The answer is | more...

February 17, 2015

FHA Loan Questions: “Substitute Forms of Credit”?

By Joe Wallace

A reader asks, “My question is what would be a substitute form of credit?” Since this question was asked in response to our blog post, “FHA Loan Credit Report Rules”, it’s probably safe to assume the reader is asking whether the FHA will permit the lender to consider alternative credit or non-traditional forms of credit in cases where the borrower has either no credit history, or a lack of traditional credit. From our original post: “HUD 4155.1 Chapter One has rules and instructions for the lender in these areas. Under “Required Credit Information” we find the following: “A credit report submitted with a loan application must contain all credit information available in the accessed repositories. Additionally, for each borrower responsible for the debt, the report must contain all of the | more...

What you should know about FHA 203(h) Loans For Disaster Victims

February 10, 2015

FHA Loan Questions: Minimum Income Requirements

By Joe Wallace

A reader asks, “Hello just want to know how much do my annual gross amount have to be to get approved for a FHA loan?” Two of the most common myths about FHA home loans are that the FHA is only for first-time homebuyers and that FHA loans have a minimum income or maximum income requirement. None of those things are true. The FHA does not have a minimum dollar amount the borrower must earn in order to qualify, and there is no income ceiling or limit for FHA loans. FHA loans are not specifically for disadvantaged people, nor are they specifically for first time home buyers. However, it’s important for all potential FHA borrowers to know that your lender will determine whether or not you can afford the new | more...

February 7, 2015

FHA Loans and Identity Theft Issues: A Reader Question

By Joe Wallace

A reader asks, “We have applied for a FHA loan and until yesterday, had no idea that that someone had filed a tax return under my social security number back in 2012. I have submitted the proper forms to the IRS, and they have my accurate 2012 tax return on file. Because I submitted the tax return late, I have never been contacted by the IRS regarding this.” “It was not until I called to set up a payment program for the taxes that I owe, that it was brought to my attention. Is this a 100% deal breaker for the loan, if my account is under review for identity theft? Can the underwriters still get the tax information that they need or is all my information frozen? I am | more...

February 6, 2015

FHA Loan Reader Questions: Seasoning Period Following Foreclosure

By Joe Wallace

A reader contacted us with a lengthy question about FHA home loans following a foreclosure. Here’s the question: “Are there any new rules as it relates to months required with a foreclosure expected in 2015? I had the same situation in which in my bankruptcy was my current house we had purchased after going through a divorce and loosing my employment. On my credit report it clearly shows that the loan to that property was part of the bankruptcy and was discharged Sept 13,2010. I am trying to refinance with my current husband under an FHA Loan and I have gone to multiple lenders and once all is reviewed they come back with the same response that since my deed to the property we included in the bankruptcy did not | more...

January 28, 2015

FHA Loans, Co-Signing, and Student Loan Debt: A Reader Question

By Joe Wallace

A reader asks, “I co signed for a student loan for my daughter who has 2 1/2 years left of schooling. This puts her at around 3 years out before needing to start making payments on this debt. i’m looking to get pre approved for a mortgage in the next 6 months. Does the loan, being 3 years out before repayment begins act negatively towards a FHA loan approval?” FHA loan rules do include scrutiny of any debt the borrower may be liable to repay as a co-signer, but individual lender standards may vary. However, the timing of the student loan debt in this case may play a positive role. Let’s look at what HUD 4155.1 says about student loan debt in general in connection with an FHA loan application. | more...

January 16, 2015

FHA Loan Reader Questions: Do I Qualify?

By Joe Wallace

A reader asks, “I wanted to know if I can qualify for any of FHA products for first time homebuyers:-My wife owns a home in her name only.-I am not listed anywhere on the deed, title, loan, etc-We currently live in her 2-bedroom home, but have outgrown it. We now have 2 kids and my mother is living with us.We would like to move to buy a new home, in my name only. I have never owned a home, however, my wife and I have been filing jointly for all of our tax returns (her property is listed on all of our tax returns). My wife plans to keep her current home as an investment property. So, do I qualify for a FHA loan, or any of your listed down payment assistance programs?” | more...