FHA – Loans against Personal Property: Does FHA still allow loans against personal property, like a car, in order to obtain funds for down payment or closing?
Answer: We all used to get away with doing this years ago, but FHA made it clear in September of 2014 and in the new 4000.1 Handbook that loans against personal property are not acceptable sources for the Minimum Required Investment on the loan. Reference: Handbook 4000.1 II.A.4.d.iii.(K) or II.A.5.c.iii.(K) A Collateralized Loan is a […]