Today we’ve got a special guest joining us, Mandi Henriod of Veritas Funding who is going to talk to us about some guideline changes that are coming for FHA loans that you should be aware of. There are two things you really need to know about, and here they are:
If you’ve had them in the past while applying for or receiving a mortgage, the FHA has allowed lenders to not count deferred payments against you. However, starting September 14, that’s all about to change. Lenders will now be required to count the full payment, or 2% of the balance, against you. This is important for a lot of people doing income-based repayment. This is going to change your buying power substantially.
These are things like car loans or anything that has a specific time for repayment. In the past, FHA has allowed lenders to not count these against you either if it was less than 10 months to repayment, but that is changing now too. Lenders will not count those payments against you unless that payment is less than 5% of your gross income.
Both of these changes are going to significantly affect your qualification. Now is a great time to find a property if you’ve been thinking of looking, and you may still be able to avoid these changes. If you have any questions for us, feel free to give us a call or send us an email. We look forward to working with you!