Loans By Kathy

FHA Changes 9/14/15 - are you still approved?

FHA Mortgage ChangesFHA made some substantial changes to the underwriting guidelines that went into effect with FHA Case Numbers assigned after 9/14/15.  If you are a buyer that is "pre-qualified or pre-approved", now is the time to confirm with your Mortgage Loan Originator that you are still pre-qualified or pre-approved if you have not yet made your purchase.

The biggest change that will impact these pre-qualification for most first time home buyers is the position regarding student loans.  Now, regardless of deferment, the payment must be included in the debt to income ratio (DTI).  If no payment is listed on the credit report, an estimated payment of 2% of the outstanding balance will be used.  As an example, a $50,000 student loan will have a monthly payment of $1000.

FHA mortgage which are typically used by first time home buyers, may now find they have less buying power or find themselves out of the housing market altogether.

The second change that will impact the Debt to Income Ratio applies to non-taxable income such as social security/disability income.  In the past, guidelines allowed 25% gross up, that has now been reduced to 15%.

In the ever changing world of mortgage lending, knowing the details upfront will save you time, money and heartache.

Remember, these changes are effective with case numbers assigned after 9.14.2015.  If your loan is already in process, the previous guidelines apply.

 

 

If you found this blog valuable, please subscribe by clicking the button to the right.  

Signature 

 


 


Kathy Sheehan Senior Loan Officer

P:

770.634.4021

F:

404.745.8060

 

Bay Equity LLC

FacebookTwitterLinkedInApply Now

11475 Great Oaks Way, Suite 350, Alpharetta, GA 30002

800.BAY.3703 Bay Equity LLC NMLS ID#76988


 

 

What to learn more, Google Me!

 

 

The opinions and general information in this blog are soley those of Kathy Sheehan.  Specifics regarding an individual case should be discussed in detail with a loan professional.  For a confidential consultation, please feel free to contact me via phone or email.  All terms and conditions are subject to change.

 

Comment balloon 3 commentsKathy Sheehan • September 24 2015 06:13AM
FHA Changes 9/14/15 - are you still approved?
share
FHA made some substantial changes to the underwriting guidelines that went into effect with FHA Case Numbers assigned after 9/14/15. If you are a buyer that is "pre-qualified or pre-approved", now is the time to confirm with your… more
New Day and New Company
share
It is going to be a beautiful spring day here in Atlanta today. I know, I know, the calendar says it isn't spring just yet, but that is one of the advantages of living in the southeast. Spring has always meant a new beginning to me. The flowers… more
Did you hear? FHA is making changes in June
share
Yesterday I wrote a blog about FHA changes taking place in April 2012. Did you hear? FHA is making changes in April Well, just when you thought it was over, there are changes coming in June 2012 too. Effective… more
Did you hear? FHA is making changes in April
share
Yes, they are changing again! This change goes into effect on FHA case numbers ordered on April 9, 2012. Buyers should consider this if they are ready, willing and able to purchase now. The change is the Upfront MIP is going to 1. 75% from… more
More FHA Changes Scheduled for April 1, 2012 in Georgia
share
Yes, you read that headline correctly, more FHA changes are scheduled for April 1, 2012. As a real estate agent, it is important for you to be aware of how this going to impact your buyers using the FHA financing program. Please keep in mind… more
USDA, It’s Not Just For Grading Meat…
share
USDA, is not just for grading meat. In fact, through the USDA (United States Department of Agriculture) there is a 100% financing program for owner occupied residential property. Yes, you read that correctly, it is a 100% financing program! &… more
FHA 203(k) Financing – Ineligible Improvements
share
You know the types of properties that are eligible and we have reviewed some of the basic program guidelines in the previous posts. There are some types of repairs that will not be eligible for this program. These are: · … more
FHA 203(k) financing – Eligible Properties
share
One of the most underutilized financing programs available is the FHA 203(k) program for home buyers that want to buy homes in less than perfect condition. The FHA financing programs have allowed many first-time homebuyers over the last two… more