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FHA Turning Turndowns into Approvals Part 2 Advice & A Laugh

By
Mortgage and Lending with White Star Mortgage

 

 I'll give you the Laugh first..:) But you've got to stick around for the info and give me a comment or two:)Reprinted with permission from www.bzloons.com

Credit Card Debt

 

Now that I've gotten a laugh out of you, here's the goods...In our last blog I wrote about the importance of mortgage professionals knowing your Account Executives and your banks guidelines. In this session I want to not assume that those who are just starting to turn to FHA know how to structure a loan file here are two important tips.

1. There are three golden rules of FHA, explanation, explanation, explanation! Explaining your borrowers credit can go a long way in getting their loan approved. Explain past derogatory credit. For example if a borrower is renting, even though FHA does not require rental history, go ahead and get it, provided it is clean, to strenghten your file. One of our banks allows a few 30 day lates here and there as long as the overall picture is good...make sure you are ready to document that and know which bank will be more leniant on a few lates rather than those that won't tolerate them at all in the last 12-24 mos. (refer back to Part 1 blog on knowing your banks)

2. Foreclosures and Bankruptcy can be less than the 3 yr/ 2 yr rule if there are extenuating circumstances...death of a close family member, documented sickness etc.. You can also discount foreclosures if the foreclosure was related to a divorce, documented in the divorce decree, was not late before the divorce was final, and was the other spouse's responsibility. You cannot discount only due to divorce. It is worth letting your borrowes know they have a 50/50 chance on a manual underwrite if you fall under one of those two circumstances.

I hope one of these things helps you close a loan. If you need any more FHA help check us out at www.newloanteam.com

 

Comments (3)

Jennifer Butz
Not yet determined - Lilburn, GA
This is awesome and great support. I am so glad people like to share things about FHA. It's like a big secret! Thank you very VERY much. :)
Apr 15, 2008 10:49 AM
John Bohannon
White Star Mortgage - Marietta, GA
You are so welcome! If you help enough people get what they want, then you also get what you want! I am glad to help! Keep working at FHA and you'll get it!  
Apr 15, 2008 11:06 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

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