FHA does not allow private flood insurance policies. All properties that require flood insurance must be purchased from the National Flood Insurance Program (NFIP/FEMA).

FHA-Flood Insurance:  Does FHA allow the use of private flood insurance? Answer: FHA requires coverage under the NFIP/FEMA.  They don’t offer the option of private insurance coverage.  See the full guideline below. Reference: (A) General Property Eligibility: The Property must be located within the U.S., Puerto Rico, Guam, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, or […]

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Borrowing against an asset can be a great way to gather the money needed for down payment and closing costs, provided the loan is against certain assets. Contact me first for all of the details.

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 […]

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If you are listing or selling a manufactured home and it is missing a Data Plate, FHA does not require this as a term of the loan.

FHA-Manufactured Home-Data Plate:  Does FHA require a Data Plate for a manufactured home when one is missing? Answer: FHA will not require the data plate. See the guideline below: Reference: Handbook 4000.1 II.D.5.g Data Plate refers to a paper document located on the interior of the property that contains specific information about the unit and […]

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FHA does not require a credit card account to be closed when paid off.

FHA-Revolving Credit Payoff:  If a revolving credit card is paid off, does FHA require this account to be closed? Answer: FHA does not have a guideline requiring a revolving debt to be paid at closing to be closed.

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I have access to a great chart regarding derogatory credit and mortgage rules. Comment below if you would like a copy!

FHA-Bankruptcy Discharge-New Loan:  If a property is included in a Chap 7 Discharge in 2010 will FHA use that date or the Deed Transfer Date? –NEW CHART-Derogatory Credit-ALL Agencies!  Answer: FHA does not follow the same policy as, say, Fannie Mae or USDA, regarding foreclosures on mortgages included in a bankruptcy. FHA requires a 3-year wait […]

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