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 […]
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 […]
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 […]
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.
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 […]