FHA – Qualifying Rental Income on 2-Unit Property: Does FHA specify that the smaller unit must be used when qualifying a borrower with rental income? Chart-Rental Income Requirements – All Agencies

Answer: No. FHA does not require that the smaller unit be used for qualifying purposes. That said, expect an underwriter to review the practicality of the borrower using the smaller unit as their primary residence. For example: If the borrower is the only occupant, and the units are a 1 bedroom and a 3 bedroom, [...]

2019-06-19T11:34:59-05:00June 25th, 2019|

FHA – Non-Occupying Borrower – 2-Unit: What is the maximum LTV for an FHA loan if I use a non-occupying co-borrower?

Answer: The answer is that it depends!  See the guideline below to determine if your borrower can use the maximum LTV of 96.5% or 75%. Reference: 4000.1, II, A, 2, b, ii (B)LTV Limitations Based on Non-Occupying Borrower Status (1) Definition: A Non-Occupying Borrower Transaction refers to a transaction involving two or more Borrowers in which one or more of [...]

2018-05-29T17:04:24-05:00April 24th, 2018|