New FHA Underwriting Guidelines Coming September 14

Posted by The Cascade Team Real Estate on Monday, August 10th, 2015 at 10:37am

 

Several new underwriting guidelines for FHA Loans will go into effect on September 14, 2015, with the release of the updated FHA Handbook. Be sure your mortgage lender is preparing for these changes.  Here are a few of the most significant revisions being made.
  Current FHA Guideline New FHA Guideline
Gift funds Only a canceled check is required as documentation. The donor’s bank statement showing the withdrawal of funds will be required, and any large cash deposits in the donor’s account will need to be explained.
Family members Definition of family member limited to spouse, children, parents/grandparents, siblings, aunts, and uncles. New definition of who qualifies as a family member, regardless of actual or perceived sexual orientation, gender identity, or legal marital status; includes domestic partners.
Part-time employment Underwriter discretion allowed when borrower has been employed part time for less than 2 years but is likely to continue. Two years of uninterrupted part-time income is required.
Deferred loans Loans deferred more than 12 months from closing do not have to be counted  in ratios. In many cases, the FHA will require Academy to use 2% of outstanding student loan balances to calculate a minimum payment, which could lower the approval amounts borrowers may qualify for. 

Again, these changes will not be effective until September 14, 2015 (or until the FHA announces the implementation of their new manual) and are subject to change at any time.

 

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