Thursday, December 2, 2010

Important FHA Guidelines You Should Know


Here are a few basic guidelines you should know regarding acquiring an FHA loan:
  • Minimum credit score is 620 and 640 on streamline refinances
  • 401 K loans do not have to be included in ratios
  • Student loans do not have to be included in ratios if they have been deferred 12 months from date of closing
  • If the current loan is FHA and home has been owned for less than 12 months-the maximum LTV will be based on lesser of current appraised value or original sales price
  • Only 1 FHA loan is allowed per borrower
  • Appraisals must be dated within 120 days of closing
  • College and trade schools can be in lieu of some work history provided they are working in area of study
  • If the borrower is self-employed, 2 years tax returns are required
  • Un-reimbursed expenses reflected on tax return will be deducted from income
  • Down payments can come from borrower’s own funds, gift funds from a relative, secured borrowed funds or city assistance and state programs

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