Q&A – April 25, 2017

FHA – Self Employed-Business Mileage: Can I add back the business mileage for a Self-Employed, Schedule C client?

Answer: FHA considers as income the add-back of depreciation from the mileage deduction for self-employed borrowers. FHA allows the depreciation portion of the mileage deduction to be added back into the income calculation. Every year the IRS publishes mileage deduction information. In this publication is the declared amount for depreciation in the deduction amount for [...]

2018-10-27T19:40:23-05:00November 4th, 2017|

FHA – Expired Appraisals & Re-Certification: What is the FHA requirement for expired appraisals for the same borrower?

Answer: An FHA appraisal update must occur prior to the expiration date of the appraisal. Value re-certifications (or appraisal updates as FHA calls them) must be completed prior to the expiration of the original appraisal. However, an underwriter is allowed to extend the validity period of the appraisal by 30 days under certain circumstances. See [...]

2017-12-27T12:07:31-05:00November 4th, 2017|

FHA – Installment Debt Calculation – Example: I’m confused by the FHA calculation to exclude installment debt of less than 10 months. Can you show me an example?

Answer: FHA buyers may be able to exclude debt where there is less than 10 mos. owed. Contact me for the specific rule and calculation. The guideline, which is included in the reference below, is referring to the monthly payment(s) of ALL liabilities that will be paid off within 10 months. Example: Payments on loans [...]

2017-12-27T12:08:18-05:00November 4th, 2017|

FHA – Grossing Up Non-Taxable Income: Can foster income, which is non-taxable, be grossed up for qualifying purposes?

Answer: Yes. Read the FHA guideline below for complete details. FHA allows Foster care income to be grossed up to assist the client in qualifying for a home. Reference: 4000.1 Manual (P) Non-Taxable Income (Grossing Up) (TOTAL) Definition: Non-Taxable Income refers to types of income not subject to federal taxes, which includes, but is not [...]

2017-12-27T12:08:18-05:00November 4th, 2017|

VA – No Credit Score: Can a Veteran with no credit score obtain a VA loan?

Answer: If a lender says you cannot qualify for a mortgage without a credit score, it is not always true. There are ways to do this, so call me. In order to evaluate the veteran’s credit history when there is no credit score, VA requires than the underwriter analyze alternative forms of credit such as [...]

2017-12-27T12:08:18-05:00November 4th, 2017|