Tag: debt payoff

Using Secured Funds as Collateral for Eliminating Debt Obligation

Question: Our applicant paid off their car loan with another loan secured by a CD that they have with their bank.  Do I need to count this payment against them or is this like a person using a loan against their 401k? Answer: The payment on this collateralized loan would not have to be counted […]

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FHA – Gift of Equity to Pay Off Debt

Question: I have a Father selling his home to his son and he would like to give a gift of equity to pay off debt at closing so that the son can qualify to purchase the property. Can this be done? Gift Funds and Gifts of Equity Chart Answer: FHA has no prohibition for using […]

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