Stated Income FHA Loans

Can you just “state” your income at whatever you think would make it easier to qualify and get an FHA loan… no.

FHA requires documentation – and that might be why there’s no need for an FHA BAILOUT.  In all seriousness, FHA is not a “publically” traded company like Bear Stearns or Fannie Mae or IndyMac – but still the point is that they have pretty strict guidelines.

Those guidelines state that if you want to borrow money that is insured by FHA – you need to document your income… and you will need enough income to qualify to make the payments on all of your obligations.

We’ve had at LEAST one borrower a week apply for a loan that was not legally seperated.  This means they were still OBLIGATED on the note for the home they owned with their spouse – even though they are still living with that person. (These guys might need to see a good divorce attorney !)

They wanted to just “state” their income.  That won’t work for an FHA loan.  For a conventional loan with a SISA - you would need at least 25% down and a 720 credit score.

If you have questions about purchasing a new home in Cary, NC- call Steve and Eleanor Thorne 919.649.5058

Popularity: 1% [?]