Issue: Q&A - October 25, 2016

Student Loan Payment: If a client has an Income-Based Repayment plan in place, can we use the actual payment?

Updated Chart on 5/9/2018 – Student Loan Chart/Checklist- FHA/VA/USDA/Conventional Comparison Answer: VA allows Income-Based Payments on student loans, which is more lenient than FHA loans. Score one for the Veterans! VA has no prohibition in the Lenders Handbook regarding the use of IBR payments, and my conversations with my VA Regional Office have confirmed this. […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

Early Occupancy Down Payment Requirement: If a buyer occupies a property prior to closing on the property, does this kick in the 6-month wait rule?

Answer: FHA requires a tenant to live in a property for 6 months before they can purchase that property using the minimum down payment. If the sales contract is already in place before they move in and they rent the house, they are going to be limited to an 85% LTV per the Identity of […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

Distance between Well and Septic: Does FHA have a requirement for the distance between the well and septic on a property?

Answer: Yes. The current guidelines are below for your reference. There are standards for FHA financing, when a property is on a well and septic system. Contact me for the details. Reference: 4000.1 Manual (O) Water Supply Systems (1) Public Water Supply System: The Mortgagee must confirm that a connection is made to a public […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

Rental Income for Multi-Unit Property: How are we able to determine the total rental income on a multi-unit property?

Answer: You can only use the rental income from the units that will not be occupied by the FHA borrower. For the self-sufficiency rental income eligibility test, you will use the fair market rent for ALL of the units to do the calculations. Multi-Unit properties are a great niche, just make sure you count the […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

Parent Co-Borrower-Multiple FHA Loans: Can a parent be co-borrower on more than one FHA loan, if they are doing this for each child, on separate properties?

Answer: Yes, the parents may co-sign again on another FHA loan. This is one of the exceptions to the rule that only allows a borrower to have one FHA loan at a time. See the guideline below. More than one Millennial living at home? FHA will allow parents to co-borrow on more than one FHA […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

Scroll to Top