New Rules - FHA Changes rules for Self Employed borrowers ROUND 2

By
Mortgage and Lending with and for 1st Time Buyers, Move Up Buyers & Investors 207897nmls# DOC#207897
http://actvra.in/xZg

FHA Changes rules for Self Employed Borrowers ROUND 2

Documentation Requirements for Self-Employed Borrowers – Effective for all case numbers ordered on or after April 1, 2012.

1.        All FHA files for self-employed borrowers require a YTD P&L AND Balance Sheet for every business covering the time from the last files tax return to the end of the most recent quarter – NO EXCEPTIONS

2.       Annual earnings that are stable or increasing are acceptable. Earnings reflecting a significant decline in income over the analysis period (25% or more) are not acceptable for use, even if the current income and debt ratios meet FHA guidelines.

3.       Also, please note that FHA still will not allow the add-back of expenses for business use of home when calculating Schedule C income.

 

I hope this helps to clarify the new requirements. Call me anytime for the latest info as it hapend and sometimes before it happens!

Thanks for stopping by and reading my blog: FHA Changes rules for Self Employed Borrowers -ROUND 2

close

Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. April Taylor 03/27/2012 10:33 PM
  2. Pat Homan 03/28/2012 12:39 PM
  3. Pamela Jackson 04/10/2012 01:55 PM
Topic:
ActiveRain Community
Groups:
Realtors Needing the services of the Lending Powers
Bananatude
Realtors®
Addicted to Active Rain
REALTOR LIFE
Tags:
az
ca
fha
investor
usda
mortgage loans
jumbo
arizona mortgage
conventional
hud
va
mark taylor
harp 20
themortgagemoment

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
1,547,602
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Mark - it looks like investors can be better off with not FHA loans. It is dificult, but it is difficult with FHA as well

Mar 27, 2012 11:11 PM #1
Rainmaker
602,201
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Self employed borrowers are a bit more challenging when it comes to the pre-qualifications

Mar 28, 2012 05:45 AM #2
Rainmaker
851,463
Curtis Van Carter
Better Homes & Gardens Wine Country Group - Yountville, CA
Your Napa Valley Broker Extraordinaire

Mark

I just lost a deal do to one of these new rules for self employed parents who were going to co-sign for their son. Thanks for pointing them out, cheers cvc

Mar 28, 2012 12:03 PM #3
Rainmaker
807,434
Juli Vosmik
Dominion Fine Properties - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

Mark, please tell me those P & L's don't need to be audited.  

Mar 28, 2012 02:52 PM #4
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Ambassador
1,298,121

Mark Taylor Mortgages

602-361-0707 #MarkTaylor #Awesomerates NMLS#207897
Need a Mortgage Rate Quote?
*
*
*
*
Spam prevention

Additional Information