Need FHA Loan. Where to begin?

Question

Joshua Meyers · Answer

@Manolo D.

My job makes me claim 100% of my tips which is good for getting a loan. There are lots of properties out there that make the 85% rule but not necessarily cash flow. It's nice to know that the banks will consider the rental income though. Thanks for your input!

Manolo D. · Answer

@Joshua Meyers If I were you, I would probably claim tips for you and your wife, yes, i know, you will be paying a bunch of taxes, but this will help your fha being approved also. Also, I have been reading about buying a 4-plex (4 unit), renting the 3 and house hacking one unit. As I understand, all rents are considered to be part of your income, in a way or two, so if you live rent free with an occasional handyman work, i think that will work out best for you, being 23 & 21.  If rents reach or exceed 85%, then you will be approved for the fha self sufficiency thing. 3.5% is your down payment.

Micki M. · Answer

I would also recommend comparing your loan options if you haven't already. A 5% down conventional loan with a local downpayment assistance program (if there is one in your area) could actually be more cost effective.  I would talk to credit unions in the area too.   Interview a handful of lenders, not necessarily for rates (which will be pretty uniform) but to find a loan officer who is willing to work with you and your situation to find the best option and will be available and prompt during your purchase.  I have some rockstar lenders here in Denver who could work with you, let me know if you need help finding someone. Good luck!

Account Closed · Answer

Contact Colorado State Bank and Trust. Just Google the number for the Denver. I've used them for my last 4 mortgages in Colorado. Get your W2s from last year, and the following from the last 3 months. Bank statements and paystubs. You'll have to prove income, so if you aren't claiming tips you may have a tough time. Standard s for FHA loans are a bit easier. CSBT is really good to work with in my experience. Good luck.

Max Matrin · Answer

The Federal Housing Administration (FHA) offers special loans to help both low- and moderate-income families purchase housing. All FHA loans are federally backed and all FHA lenders have been approved by the federal government to service the loans. When compared to other types of mortgages, an FHA loan is especially affordable and easy to qualify for, making them a great choice for people and families who have a limited budget or a tarnished credit history.

Kim Smith · Answer

You must have a steady employment history or worked for the same employer for the past two years. Also, an FHA loan requires that a property meet certain minimum standards at appraisal. There are maximum mortgage limits for FHA loans that vary by state and county. Conventional loans also allow you to count home price appreciation toward obtaining the needed equity. But FHA mortgages do not.

Bill Hamilton · Answer

If you can qualify without using the rental income, it will simplify your loan. But, from experience, you may have a very difficult time convincing an underwriter that you are going to commute that far every week when this is your primary residence. Not saying you won't be able to but it may be difficult.

Max Matrin · Answer

Because FHA loans are insured by the government, they have easier credit qualifying guidelines than most lenders, as well as relatively low closing costs and down payment requirements.With an FHA loan, your down payment can be as low as 3.5% of the purchase price, assuming you have at least a 580 credit score.  And closing costs can be bundled with the loan. In other words, you don’t need much cash to close.

Kelly Adcock · Answer

Please remember the rental income is not calculated at 100% of the potential rents.  The calculations used are based on subject comparisons.  This is an added appraisal form, to be added as an additional cost.  It is required by the lender per FHA guidelines, since you are attempting to use rental income as a qualifying factor.

Joshua Meyers · Answer

@Bill S.

I considered that! I only work 2-3 days per week(poker is fairly lucrative) so I plan to travel over here and stay in the Ameristar hotel and then drive back. I remember reading the regulations on FHA and I'm pretty sure there's a  % of every week that you have to be home. Not only that but my wife will also be living there round the clock so I believe that counts as owner occupied.

Even if we took her income off the loan underwriting, I'm still around 4K by myself which at 28% allows for a $1100ish payment which is within what I'm shooting for. This doesn't include the rental income either. Hopefully this plan will work. What are your thoughts?

Need FHA Loan. Where to begin?

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