Q&A - August 25, 2016

Gift Donor Eligibility: Does FHA allow a non-relative to gift a down payment?

Answer: Yes. FHA allows unrelated individuals to provide a gift. The tricky part sometimes is documenting the relationship, but it is allowed. See the guideline below. FHA allows a gift of down payment from many sources. Contact me for details! Reference: Handbook 4000.1 II.A.4.d.iii.(F) or II.A.5.c.iii.(F) Gifts refer to the contributions of cash or equity [...]

2017-12-27T12:29:37-05:00November 3rd, 2017|

Flipping Rules: What are the guidelines for the FHA 90-Day Flip Rule?

[Download Mortgage Talking PointsTM flyer, FHA Property Flipping Rules, Restrictions & Exceptions] Answer: Real Estate agents – keep in mind that FHA contracts will require 90 days between the day seller took title and the day the contract is executed. Reference: 4000.1, II, A, 1, b, iv, (A) (3) Restrictions on Property Flipping: Property Flipping [...]

2018-10-16T18:52:34-05:00November 3rd, 2017|

Declining Income: I have a salaried client who moved from a high-paying area to a lower-paying area to care for elderly relatives, so his income went down. How does FHA handle declining income?

Answer: Declining income is only a problem for self-employed borrowers or borrowers who earn variable types of income such as commission, bonus, or overtime, as we have no guarantee what the future holds for these types of incomes. If these types of income show declining trends, these are red flags as to the future earnings [...]

2017-12-27T12:29:37-05:00November 3rd, 2017|

Conversion of Primary to Rental: FHA requires a 25% equity position in order to use rental income. Do Fannie or Freddie have this restriction?

[Download Mortgage Talking PointsTM flyer, What are the Fannie Rules when a Client Buys a Home & Current Home is Not Sold or Not Going to be Sold?]Answer: Great question, and I believe you will like the answer! Neither Fannie Mae or Freddie Mac require the exit property to have a 25% equity position to [...]

2018-11-26T19:43:29-05:00November 3rd, 2017|