Issue: Q&A - March 25, 2018

FHA – Appliances Required in Home: Is a Stove required in a home for those using FHA Financing?

Answer: A stove is not required.  This is one of those FHA issues that is not addressed in the FHA Handbook but is a very common question.  And I can tell you that for MANY years the California HOC would state to anyone that called that a stove WAS required in a home in order […]

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FHA – DACA Status Buyer: My client has a C33 (DACA Status) Visa and an Employment Authorization Document. Another lender turned her down and I’d like to know if FHA will do this loan. [Visa Status Chart-Visa Terminology-Visa Status Class]

Answer: USCIS shows DACA in an un-rescinded status. Unless that changes to rescinded, someone with DACA status and an EAD (Employment Authorization Document), is permitted to work in the US. FHA allows this type of borrower provided they meet the conditions I have outlined below.  While there is no FHA guideline that says DACA status […]

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FHA & VA Property Conditions: Is there a list of Standard Property Conditions for FHA and VA? [New Checklist-FHA Property Condition Screening Checklist-New Checklist & VA Property Condition Screening Checklist]

Answer: FHA and VA do not provide a list per se.  However, they provide guidance on Minimum Property Requirements and Standards and offer information on repair items that could be considered cosmetic and not require repairs.  Ultimately the lender decides what repairs are required based on the appraiser reports in the appraisal and the FHA/VA guidelines. […]

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FHA – Voluntary Child Support Agreement: Does FHA allow income from a voluntary child support agreement, and if so how do you document receipt of income?

Answer: The FHA guideline is below.  The underwriter will make the final decision regarding the acceptability of the documentation, but I would think that the last 12 months of bank statements showing consistent payments matching the voluntary agreement should be acceptable. Reference: 4000.1, II, A, 4, c, xii (B) Alimony, Child Support, and Maintenance Income (TOTAL) […]

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Fannie Mae, Freddie Mac & FHA – Foreign Earned Income: Can I use Foreign Earned Income for a Conventional or FHA loan?

Fannie Mae & Freddie Mac Says: For Fannie Mae and Freddie Mac, you must enter “Foreign Income” as “Other Income”.  Otherwise, as you can see below, if you meet the requirements below, then foreign income can be used – see highlighted text.  Fannie intel first, followed by Freddie. References: Fannie Mae B3-3.1-09, Other Sources of […]

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