* Borrower hasn't enough for a down payment?
FHA allows a 100% gift. Gift funds can also be used for closing costs.
* Borrower's debt ratio are too high?
FHA will allow up to a 45% back end debt ratio with compensation factors not found with conventional programs.
* Borrower cannot qualify on his/her own?
FHA allows non-occupant co-borrowers and will qualify together without regards to the primary borrower's individual ability to quality.
* Borrower looking for a loan that can be assumed by a future buyer?
FHA loan programs are assumable on both the fixed and adjustable.
* Borrowers are not U.S. citizens?
FHA does not require U.S. citizenship.
* Borrower has unpaid collection accounts which, if forced to payoff, would severely affect his/her ability to qualify?
FHA does not arbitrarily demand that all collection be paid as a condition for loan approval. It is left to the discretion of the individual underwriter.
* Borrower has a bankruptcy?
FHA only requires that a Chapter 7 be discharged for 2 years, and a Chapter 13 be discharged for 1 year.
* Borrower has "less-than-perfect" credit?FHA will not count minor "derog's" that are over 2 years old. Their main emphasis will be on the last 12 months. FHA is much more forgiving credit wise compared to conventional Guidelines.
* Borrower currently owns income property?
FHA considers Schedule E income plus depreciation, minus 10% for vacancy factor as acceptable. Current leases may be used if new income properties are not reflected on the 1040's. Either one of these formulas will allow for much more income compared to conventional means.
* Borrower is self employed for less than 2 years?
FHA may be the answer to help you purchase a home now!!