There are FHA changes beginning with all loans assigned after 9-14-20015.
Some of them are biggies…
For part time income: Two years of uninterrupted part-time income will be required. The borrower’s average over the two-year period will be used in calculations.
Self employed declining income: You cannot use income if your borrower has had more than a 20% decline except in extenuating circumstances, and it has been either stable or increasing during the past 12 months. However, you need to qualify using the lower income. Declining income of 20% requires the loan to be downgraded to a manual underwrite& you will have to follow manual underwriting guidelines.
Deferred loans: Deferred obligations are required to be included in the borrower’s liabilities now.
•You should use the actual monthly payment to be paid on a deferred liability whenever available but if the actual monthly payment is not available for installment loan you must use 5% of the outstanding balance of the deferred loan.
•For student loans, if the actual monthly payment is 0 or is not available you must use 2% of the outstanding balance to establish the monthly payment for qualifying.
Multiple FHA loans: A borrower can obtain a second FHA loan for their primary residence if they are relocating for work. Your new work location must be more than 100 miles from your current home. This change does not account for high traffic areas where commutes can take exceptionally long times.
There are actually many more changes, but these are the big ones.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
