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
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
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