Q&A - November 25, 2016

Credit Reports – Disputed Accounts: Does FHA require that disputed accounts be removed and a new report pulled?

Answer: Disputed accounts do not need to be removed from a credit report when using FHA Financing. FHA does not require that the disputed accounts be removed. Reference: Handbook 4000.1 II.A.4.b.iii.(B)-(C) How are disputed credit accounts considered when using the TOTAL Scorecard? Disputed Derogatory Credit Accounts Disputed Derogatory Credit Account refers to disputed charge off accounts, disputed [...]

2017-12-27T12:20:53-05:00November 3rd, 2017|

Debt Obligations Not Included: What is not considered debt and not included in the DTI calculations for a FHA loan?

Answer: FHA does not require medical collections to be counted as a debt! The following are not considered debt and not included in the DTI calculation. See the guideline below! Reference: 4000.1, II A, 4, b, iv (Q) Obligations Not Considered Debt (TOTAL): Obligations not considered debt include: Medical collections Federal, state, and local taxes, [...]

2017-12-27T12:20:53-05:00November 3rd, 2017|

Non-Occupying Co-Borrower Guidelines: What are the guidelines for a using non-occupying co-borrower income to help a borrower qualify for an FHA loan?

[Mortgage Talking Point™, FHA – Using Non-Occupying Co-Borrower Income To Qualify for an FHA Loan] Answer: FHA allows non-occupying co-borrowers even when the occupying borrower has no income! FHA does not have a central ‘non-occupant co-borrower’ guideline section. Instead they have information throughout the 4000.1 that references non-occupant co-borrowers. We have taken the time to go [...]

2018-10-16T18:49:28-05:00November 3rd, 2017|

Accessory Unit Guidelines: What are the guidelines for single-family homes that have separate living quarters (accessory unit) on the property?

Answer: Trying to list a property but unsure how multiple buildings on the same property will affect the financing? Call me and let’s discuss. We researched the Fannie Mae selling guide and found the information they developed regarding accessory units. See the information highlighted below. Reference: B4-1.3-05, Improvements Section of the Appraisal Report (10/24/2016) Introduction [...]

2017-12-27T12:20:54-05:00November 3rd, 2017|