FHA Qualification Guidelines
For Divorcing Clients
Have you ever had a divorced client who couldn't qualify because they didn't know they were still on the mortgage of the marital home?
This happens all too frequently- a person is quit claimed off the deed, but mistakenly left on the loan.
HUD Guidelines for an FHA loan qualification will allow a divorcing woman or man to qualify for a new mortgage while still remaining on the previous note.
Specifics
*No late payments on the current loan.
*The Final Divorce decree must be specific and clearly indicate that the spouse remaining in the marital residence will be fully responsible for all remaining mortgage payments.
*The spouse remaining in the marital residence must maintain all payments and continue to occupy the property until such time as they either refinance or sell. It can not become a rental property.
*All standard FHA qualification will continue to apply ( ratios,credit scoring and related credit guidelines, required minimum down payment etc.
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