Fha Guidelines | NC FHA Expert

Calculating FHA Downpayment

January 30, 2012 By admin Leave a Comment

Be Careful I’ve been in this business for a while… my daughter would tell you I’m old as dirt… and for as long as I’ve been in this, we’ve had a complicated way of calculating FHA Downpayment.

FHA always used acquisition cost. How much were you putting into the total aquisition of the property… closing costs and downpayment combined.

With the new rule changes of January 1… we use a STRAIGHT UP number. The base loan will be a 96.5% of the sales price or appraised value – whichever is LESS. If you are working with a loan officer is is unfamiliar with FHA – you could find yourself at the closing table wishing you’d done a little more research. I just saw a deal where the loan officer quoted the wrong downpayment amount by $1200. [Read more...]

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FHA Underwriting Guidelines for NC

November 21, 2011 By admin Leave a Comment

We talk to people everyday who have questions about qualifying for a FHA Mortgage Loan in NC. FHA Underwriting Guidelines, are actually pretty straightforward.

Unlike qualifying for a VA Mortgage loan (where you must be a qualifying Veteran) or a USDA Home Loan (that requires that you meet income limits for your county and the property must fit within the USDA RD Loan Footprint) – FHA has far fewer restrictions! They do have Maximum Loan Amounts, which vary per county – but other than that, just about anyone who wants to purchase an Owner Occupied Home can do so!

Maximum Loan Amounts: Maximum FHA Loan Limits Vary per County, and are subject to change each October. Congress has said that they will be lowering the High Cost Area FHA loans that are currently available in areas like Washington, DC and San Francisco in October of 2012. It looks like the maximum FHA Loan Limit for Homes in Raleigh will change at that time too. The FHA Maximum Loan limit for Wake County is $295,000 – (and although Congress did lower the the 2012 limit down to $271,050 for a few months… they moved it back to $295,000 shortly thereafter). [Read more...]

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FHA Guidelines About Using Rental Income in NC

December 8, 2010 By Eleanor Leave a Comment

If you are moving to North Carolina, and you are going to rent your current home, there are a couple of things you should know about qualifying for an FHA Mortgage Loan for your new house. If you qualify for both payments – then it’s a pretty easy deal. If you need to count some of the income from your current residence it gets a little more tricky.

FHA Guidelines state that the rental income can not be counted, unless we can prove that you have at least a 25% equity stake in the home you are going to rent out. Too many people are buying a new home, and simply walking away from the one they couldn’t sell.

There is an EXCEPTION however:

If the borrower is relocating with a new employer, or being transferred by the current employer to an area not within reasonable and locally recognized commuting distance…

AND a properly executed lease agreement (that is, a lease signed by the borrower and the lessee) of at least one year’s duration after the loan is closed, and we have a copy of a cancelled check for the security deposit, evidence of the first month’s rent

THEN we can count the rental income. ALL mortgage programs (not just FHA) only give you 75% of the rental income as credit… So, if you rent the property out for $1000 we will only be giving you $750 of income to use to qualify for your new home.

So let’s say that your “old” home has a TOTAL payment (taxes, ins, everything) of $1500. You are able to rent it for $1000. In this case, we would be counting $750 as a monthly debt for you.

If you are relocating, and getting a new job, please read these FHA Guidelines about documenting your income. If you have questions about purchasing a home in NC using FHA financing, please call Steve and Eleanor Thorne Mortgage Banker in Cary , 919-649-5058.

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FHA Guidelines on New Jobs

June 28, 2010 By Eleanor Leave a Comment

Maybe you just graduated from College – or maybe you have been out of work and are so excited because you finally got a job! YEAH! You have a new job, and now you want to get a new house!

Well – go ahead and buy a house. If you are getting a FHA Mortgage Loan, you will need to have at least 30 days of paystubs before you can close. So if you have a change in employment of any kind… this applies. (read don’t change jobs while you are in process!)

For most loan programs, we just need ONE paysub, but for FHA we need a full 30 days of paystubs… this really doesn’t make sense sometimes. We have a customer that just graduated from Vet School, she’s worked as an Intern for 2 years (so it’s not like it’s her FIRST job)! She wanted to purchase her first home, and close for the tax credit.

Well, her new job doesn’t start until July 1st. If she could get a “non-revocable” contract, then I think the underwriter would have allowed it to close… but who is going to give someone a “non-revocable” contract!?!? I mean we didn’t just find this out, we knew it within 3 days of taking the loan application, but still, I’ll bet there ARE tons of people who are trying to close in time of the Tax Credit, and for some small little reason they can’t.

If you are ready to purchase a home in NC, and you are looking for a FHA loan – give us a call! We know the FHA guidelines, and if there’s a way to make your situation work, we’ll help you get closed!! Steve and Eleanor Thorne, Mortgage Banker in Cary , 919-649-5058. We answer First Time Home Buyer Questions!