Issue: Q&A - July 10, 2016

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. Social Media Post: FHA does not require a credit card account to be closed when paid off. Copyright © 2018 – Mortgage Currentcy – All Rights Reserved

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Identity of Interest: A grandmother passed away and the granddaughter wants to buy the house from her estate. Is this an identity-of-interest situation that would limit her max LTV to 85%?

Answer: FHA will allow an exception to their Identity-of-Interest LTV restriction for Family Member transactions. Call me! While this would be an underwriter call, it is my opinion that this would be considered a family member transaction, which would create an exception to the maximum LTV. Reference: Handbook 4000.1 states the following: (A) LTV Limitations […]

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Shared Well Requirements: Is a property on a community well permitted for FHA Financing?

[Download Mortgage Talking PointsTM flyer, FHA Shared Well Requirements Checklist!] Answer: FHA allows shared wells if they meet certain standards. Contact me for a handy checklist! A shared well is acceptable if all of the requirements are met. See the guideline below. Reference: 4000.1, II, A, 3, a, ii (O) (3) Shared Wells-The Mortgagee must […]

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