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Recent FHA Guideline Changes and Highlights
In the summer of 2015 the Federal Housing Administration (FHA) made some changes to a wide range of its guidelines. The goal is to make sure prospective buyers are financially ready right now to buy a home and there is a reasonable chance that they can continue to afford the home. Listed below are the major highlights of the changes and a review of a few lesser known guidelines and how they can influence a loan approval.
Down Payment Gifts need more Documentation
FHA will still allow family and friends to provide gifts to buyers in order to cover the down payment. However, a letter from the donor is not going to be satisfactory.
Buyers need to get a bank statement from the donor showing the source of the gift funds as well as a copy of the cashier's check. Furthermore, the buyer will need to get a printout of their account reflecting the balance before and after the gift.
Calculation of Income from Side Jobs
People that have a 2nd job will need to show at least 2 years of work history at the other job in order to have it count towards their overall income. The income will also be averaged over the most previous ... more
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