Changes to FHA Loans

Mortgage and Lending with Academy Mortgage Corporation NMLS #229617

There have been some siginifacant changes to FHA loans as of September 15th, 2015. FHA loans have often been viewed as a way for lower income households to achieve home ownership. FHA loans are overseen by the Department of Housing and Urban Developement which admisters any changes. 

Here is a quick rundown of some changes

  • Large Deposits-are defined as more than 1% of the adjusted value.
  • Part-Time Income-two years of uninteerrupted part-time income will be required. 
  • Self-employed declining Income-you cannot use your income if it has had more than 20% decline except in extenuating circumstances. 
  • Freequent Employmet Changes-if you have changed jobs three times in the past 12 months additional explanation is required. 
  • Deferred Loans-loan payments must be calculated and included in debt-to-income ratios, regardless of status. 

There are a number of other changes. To get a more detailed descprition please visit us here



Comments (1)

Gwen Banta
Sotheby's International Realty - Los Angeles, CA

Steve, we have a hard time here  getting sellers to look at offers with FHA loans. Are the inspection requirements still really strict? (ie demanding that a garage with a finished, unpermitted "man cave" be converted back , for example.)

Sep 28, 2015 07:26 AM