Here are just a few short tidbits regarding FHA insured loans:
Q: Are the debts of a non-purchasing spouse required to be included in the debt-to-income ratios?
A: Yes, in community property states such as California. However, the non-purchasing spouse's credit scores are not factored into the loan decision.
Gone are the days when you could remove an unemployed spouse from the loan because they had a large car payment, but no income. Keep in mind that if the non-purchasing spouse refuses to give consent for the credit report then the loan will not be eligible for FHA insured financing.
Q: Are modular homes treated in the same manner as manufactured homes? 
A: Fortunately, no. Modular construction is also a factory-built home, but is treated the same as stick-built housing.
Q: Can the Upfront Mortgage Insurance Premium (UFMIP) be paid in cash or must it be financed into the loan?
A: The UFMIP must be either entirely financed into the mortgage or paid entirely in cash. Along those same lines, a seller concession may be used to pay for the UFMIP, but the concession must cover the full amount.
As of today, a maximum of 6% in seller concessions is still allowed on FHA insured loans. There is talk of that being lowered to 3% at some point though.
Q: Is it acceptable to get a loan for the down payment?
A: Yes. Funds can be borrowed for the total required investment as long as satisfactory evidence is provided that the funds are fully secured by investment accounts or real property. This includes stocks, bonds, real estate (other than the property being purchased).
In addition, certain types of loans secured against deposited funds (401k, cash value of life insurance, etc) do not require consideration of repayment for qualifying purposes.
Q: Can gift funds come from an employer?
A: Yes, gift funds may come from the borrower's employer. However, the gift donor may not be a person or entity with an interest in the sale transaction. Salary advances are considered unsecured loans and are therefore not an acceptable source of funds for closing.
Q: Is a borrower eligible if they have delinquent Federal debt?
A: If the borrower is presently delinquent on any Federal debt (VA-guaranteed mortgage, Title I loan, Federal student loan, SBA loan, delinquent Federal taxes), then they are not eligible for FHA insured financing until the debt is brought current, paid or otherwise satisfied.
Q: Can an FHA appraisal be transferred between lenders?
A: Yes. When a borrower has switched lenders, the first lender must transfer the FHA case number and appraisal to the second lender upon borrower request. FHA does not require that the lender name on the appraisal be changed when it is transferred to another lender.
Sometimes, a deal will fall out of escrow due to a particular lender's overlays, i.e., tighter guidelines than actually required by FHA. This way, the buyer can switch lenders and not be forced to pay for a 2nd appraisal.
Please feel free to contact me with any questions, I am here to help!
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