Co-Borrowers & Co-Signers

FHA rules for Co-Borrowers and Co-Signers are important to understand before when pre-qualifying a borrower for an FHA mortgage. (see 4155-1 for complete explanation and rules) Borrowers, Co-Borrowers and Co-Signers. Borrowers and Co-borrowers take title to the property and are obligated on the mortgage note and must also sign the security instrument. The co-borrower’s income, […]

Rules of Occupancy

Principal Residences An FHA Insured mortgage is intended for owner occupied dwellings.   In other words, there is at least one borrower who intends to occupy the residence for the greater part of 1 year.  The borrower must occupy the residence within 60 days after signing the security instrument with continued occupancy for at least 1 […]

Debt to Income Ratios

FHA Debt to Income Ratios  are used in determining if a borrower has adequate income to make the monthly mortgage payment.    The debt to income ratio is not the final or only determining factor in obtaining an approval for an FHA insured loan. The 1st ratio is the mortgage payment divided by effective monthly income. […]

FHA Loan to Value

FHA Purchase Loans and FHA Refinance Loans have new loan to value (LTV) requirements that lenders, real estate agents and borrowers need to become familiar with as they become effective on Jan 1st, 2009. FHA Purchase Loans The HERA – Housing and Economic Recovery Act of 2008 revised the down payment requirements for FHA purchase […]

FHA Closing Costs

FHA has what are called:  Allowable Closing Costs and Non-Allowable Closing Costs. In the past before January 27th, 2006 there was a big difference as to which closing costs a borrower could not pay.   But, that has changed to make the program more in line with conventional mortgages. Most fees that a borrower would […]

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