All Forum Posts by: Michael Cohen

Hi Kim!  Back when I was in mortgages, I worked under Heidi Gage with NFM Lending and her speciality is 203Ks.  I would definitely recommend giving her a call.

Two adjectives I’ve never heard in the same sentence as QuickenLoans. 😀

Yes they will lend to you, but not as an FHA loan. HUD writes the guidelines, and lenders follow the limits they are given.

Hi @Arthur Voskanyan - The benefit of an FHA loan is that it allows for higher DTI, lower credit score, and lower down payment. If you have 20% down, no current debt, and great credit, there's little value in an FHA loan for you. Go conventional.

College/education does count towards your employment time, so if you had a job while in school, graduated, and now replaced school with a 2nd job, yes both incomes would be allowed for qualifying income.

The lender is no more morally/ethically obligated to lower your rate than you would be to pay a higher rate had the market increased since you locked.

When a loan is "locked," you are pricing out the rate based on the market at the time for how long it was locked. In your case, the lender agreed to keep you at the 4.75% rate for 60 days (which is a very long time) even if rates go up. It is an agreement between both parties, the lender and you.

Some lenders will recast the rate, but there is a cost to doing so. Unless your new rate would be lowered by 1/2 a point or more, it's most likely not worth it.

Originally posted by @Robert Leonard:

PMI is permanent and does not go away when LTV gets below 80% (like they did in the past), on today's FHA loans!

Robert is correct in that FHA loans maintain PMI for the life of the loan since 2013. There is talk of removing that, but any loan originated currently will never eliminate PMI. However, if you do have the 80% equity as determined by an appraiser, you could refinance into a conventional loan so you would get rid of the PMI by changing out of the FHA loan.

Originally posted by @Albert Severino:

How much can you borrow in a 203k mortgage loan?

Like any mortgage, it's based on your income, assets, and credit. You can find a good loan officer that specializes in renovation loans by Googling "[your city] + renovation loans" or "[your city] + 203K."

No. There are no FHA income minimums or maximums. Your income merely helps determine for HOW MUCH you are qualified.

Borrowing against your 401K is acceptable source. For the most part, down payment is your minimum cash investment. Essentially your “skin in the game” so it cannot be a loan from a bank, friend, family member, etc.

Hi Mike,

I agree with Brendon. What is most important is that someone who understands the programs and guidelines has reviewed your supporting documentation (tax returns, pay stubs, bank statements, etc.), review your credit profile, and determine an accurate DTI ratio, and is confident that you are an eligible buyer. Whether that comes from a bank or direct lender is irrelevant.