FHA Loan Requirements for Debt Obligations is a post from: FHA,VA and Conventional Home Loans in all 50 States
When any borrower applies for a FHA loan in California their credit will be checked and all debt obligations that show up on their credit report will factor into their debt-to-income ratios needed to qualify for a FHA loan. FHA home loan requirements require FHA borrowers to fall under a certain debt-to-income ratios to qualify for a FHA loan. All the debts below are counted in your FHA debt-to-income ratio (DTI). To calculate DTI take all your debts (including your new home payment) and divide them into your income. The very maximum FHA loan guidelines all is 45.9% ratio of your total housing payment to income and 55.9% of your total debt + housing payment to income.
Here are some examples of the most common debt obligations counted in FHA guidelines:
- Alimony and child support
- Auto loans
- Housing payments (Mortgage + taxes + insurance)
- Student loans scheduled to begin within 12 mos of the VA home loan closing
- Credit card minimum monthly payments
The following are not included in the debt-t0-income ratio to qualify for a FHA loan, but they will factor into your FHA loan approval:
- Any judgments appearing on your credit must be paid per VA loan requirements
- Collections over $1,000 may or may not have to be paid, this is up to the VA underwriter
Generally most items that do not show up on your credit report are not counted as debt obligations per FHA loan requirements. For example, auto insurance, cell phone bills, utilities, etc… are not counted as debt obligations per FHA loan guidelines. Also, loans secured by retirement plans do NOT need to be counted as a debt obligation for FHA loan approval!
So I hope this gives you some guidance on what debt obligations are counted to qualify for a FHA loan in California. It may also help you plan on what to pay off or minimize in planning to get a FHA loan to buy a home in California. If you would like to get pre-approved for a FHA loan in California don’t hesitate to email me at homeloan8@gmail.com or call 858-922-7899.
Here are some of the latest advantages of FHA home loans in California:
- FHA loan down payment is 3.5% and this can come from a gift from a relative
- FHA loan rates are still hovering at 60 year lows
- FHA loan limits in many parts of California such as Los Angeles, Orange County, San Jose, and San Francisco go up to $729,750. In San Diego FHA loan limit is $697,500.
- FHA loan credit score does not have to perfect. Give us a call or email we are specialists in assisting borrowers to raise scores to where they need to be
Regards,
Rob Chomentowski
Sr. Loan Officer (FHA, VA, USDA, Homepath and conventional loan specialist)
858-922-7899
Fannie Mae Homepath Mortgage In California is a post from: FHA,VA and Conventional Home Loans in all 50 States
Fannie Mae is an organization that purchases mortgages in the secondary market after banks fund home loans. When a borrower defaults on payments and the property is foreclosed on, the ownership will revert back to Fannie Mae. Then Fannie Mae will list this property on the market for sale and be the seller. A really nice advantage of buying a home Fannie Mae is selling is they are all eligible for Homepath Financing. Fannie Mae does not originate the Homepath loans; lenders such as myself make the Fannie Homepath Mortgages. So anytime you see a home owned by Fannie Mae, you can go through a lender like me to get a special Homepath Financing in California.
Here are some of the highlights of Fannie Mae Homepath loans in California:
- Homepath Financing requires only 3% down payment on all of their properties (although 5% allows for a much better rate and terms)
- The Homepath Mortgage does not require an appraisal. This can help you buy a fixer upper property that would not go FHA,VA or conventional
- Homepath loans on condos do not require any information from the hoa such as owner occupancy, percentage of hoa delinquencies, etc… that are required with FHA, VA and conventional loans
- Homepath loan limits go all the way up to $729,750 in many California areas such as San Jose, San Francisco, Los Angeles, Orange County and San Diego
- The Homepath Mortgage DOES NOT have any mortgage insurance
So those are some of the advantages of Homepath Financing in California. Feel free to email me at homeloan8@gmail.com or call 858-922-7899 to discuss getting approved for a Fannie Mae Homepath mortgage in California.
Regards,
Rob Chomentowski
Sr. Loan Officer (and FHA, VA, conventional, Homepath specialist)
858-922-7899
homeloan8@gmail.com
FHA Loan Requirements for 2010 Tax Returns is a post from: FHA,VA and Conventional Home Loans in all 50 States
To qualify for a FHA loan if you are self employed or an independent contractor getting paid 1099, FHA loan guidelines require your last two years of tax returns to calculate your income to qualify for a FHA loan. So if you think you will need your income from your 2010 tax returns to qualify, it is best to file your returns as soon as possible. Because when a lender processes your FHA loan application, they will pull your tax transcripts from the last two years from the IRS to verify your income. And there is a delay of 2-4 weeks from when you electronically file your tax return until the FHA lender is able to pull the transcript of that return.
The way FHA lenders calculate income for self employed or independent contractors is they average the NET income from the the last two years of tax returns. This is the NET income after tax deductions, not the GROSS income. There are some deductions that can be added back to income such as depreciation and business use of home. So if you had a good year in 2010 and you want to be able to use your income in 2010 to help you qualify for a FHA loan, make sure you get your 2010 taxes filed as soon as your possibly can so the transcripts will be ready for the FHA lender to pull.
Some advantages of FHA loans in California:
- FHA loan down payment is only 3.5% and this can be a gift from a relative
- FHA loan requirements allow non-occupant co-borrowers to help you qualify
- FHA loan limits in California go all the way up to $729,750 in many areas of California such as Los Angeles, Orange County, San Francisco, San Jose and close to this amount in San Diego
- FHA loan requirements allow borrowers to qualify only two years after a chapter 7 bankruptcy
- FHA loan guidelines all borrowers to qualify three years after a short sale or foreclosure
Don’t hesitate to email at homeloan8@gmail.com or call at 858-922-7899 if you would like to be approved for a FHA loan in California.
Regards,
Rob Chomentowski
Sr. Loan Officer (and FHA, VA, conventional, Homepath specialist)
858-922-7899
homeloan8@gmail.com