Great information. As you know I do lots of these loans w/borrowers who really need this. The big issue is with FHA which is the big loan catagory these borrowers fall into because of the higher ratio allowance, lower mortgage monthly mortgage insurance, more forgiving guidelines to past credit issues, no reserves etc. The guidelines are specific as to what source the funds can come from. I have been in contact with FHA regularly in hopes of them opening up more avenues for the seasoning and acceptable sources of the funds. Currently the funds have to be the borrowers own money. The funds can only be borrowed if they are secured against something tangible i.e. a vehicle that has the availabilty to incur a loan on it. The home can not be included in the security, Washington State Housing Finance Commission or a close family relative and the list is specific, can either lend the money or gift the money to them. If the funds are borrowered we have to factor in the additional debt. I’d like to call FHA, if you are ok with it, to see what their position is on this proposal??? This would be so awesome and would make my job so much simpler. We’d be rockin’
Thanks Nate, awesome info as always.
Nanci