0
The FHA doesn't have guidelines on this subject because it doesn't involve a protected class. The guidelines are determined by the mortgage lender, and they vary from bank to bank. Lenders generally want to avoid a sale to anyone related to the seller by blood, marriage, or business, as this could result in a lowered sale price or even collusion with an appraiser. They want the property to be advertised in a public market, thus raising the chance of a higher sale price and higher profit for the bank.
If you are selling for a fair price and make full disclosure, the bank may allow an exception to their rule in some cases.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Would you explain residual income guidelines for FHA loans?
FHA doesn't have residual income guidelines...this applies to VA loans
What rules does a FHA lender have to follow that a traditional mortgage lender does not?
FHA loans are handled differently and have guidelines set forth by the government restricting everything from income limits to down payment amounts. The normal mortgage lenders have guidelines but not nearly as strict as FHA.
Are Fannie Mae and Freddie Mac FHA lenders?
No Fannie Mae and Freddie Mac are not FHA lenders. FHA loans are guaranteed loans and the others are not. FHA loans also have different guidelines and qualification tools.
What is the difference between a fha loan and a conventional loan?
An FHA loan has more guidelines and rules than a conventional loan does. An FHA loans are only available on certain houses and you can get a conventional loan on any house if your credit meets the requirements.
What is the Minimum FICO score needed to obtain an FHA mortgage?
FHA guidelines do not require a "Minimum" FICO in order to obtain an FHA loan. Many investors that make FHA loans do, however, have a minimum FICO requirement. Contact a knowledgeable Mortgage professional in your area and he will be able to help you with additional information.
Would you explain residual income guidelines for FHA loans?
FHA doesn't have residual income guidelines...this applies to VA loans
What rules does a FHA lender have to follow that a traditional mortgage lender does not?
FHA loans are handled differently and have guidelines set forth by the government restricting everything from income limits to down payment amounts. The normal mortgage lenders have guidelines but not nearly as strict as FHA.
Are Fannie Mae and Freddie Mac FHA lenders?
No Fannie Mae and Freddie Mac are not FHA lenders. FHA loans are guaranteed loans and the others are not. FHA loans also have different guidelines and qualification tools.
Will FHA ever adopt HVCC guidelines?
Yes, effective January 1, 2010 FHA will implement the HVCC. This was announced 9/18/09.
What is the difference between a fha loan and a conventional loan?
An FHA loan has more guidelines and rules than a conventional loan does. An FHA loans are only available on certain houses and you can get a conventional loan on any house if your credit meets the requirements.
What is the Minimum FICO score needed to obtain an FHA mortgage?
FHA guidelines do not require a "Minimum" FICO in order to obtain an FHA loan. Many investors that make FHA loans do, however, have a minimum FICO requirement. Contact a knowledgeable Mortgage professional in your area and he will be able to help you with additional information.
What is a government insured reverse mortgage?
Most reverse mortgages today are government insured reverse mortgages. This simply means its an FHA loan. The FHA HECM program insures the loan to the lenders, provided they follow FHA's guidelines for doing reverse mortgages.
Can you change from a FHA loan to a conventional loan?
It's possible to refinance from an FHA loan to a conventional home loan, but the underwriting guidelines are different. For example, FHA allows a higher loan to value, and a lower credit score to qualify for a mortgage. See: http://www.loandepot.com/LoanOptions/FHA.aspx
What are the FHA loan requirements for mortgage insurance?
The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes in the United States and its territories. It is the largest insurer of residential mortgages in the world, insuring tens of millions of properties since 1934 when it was created. Learn more about FHA loan requirements and guidelines.
Are veterans eligible for FHA loans?
Veterans are eligible for FHA loans. Veterans must meet the military guidelines in order to be eligible for this type of loan. Information for veterans in this regard can be easily found on the Internet on a website called Military Rates.
How can I get pre-approved with an FHA lender?
You will first need to choose a lender to use and contact them. Each lender is different but they all follow the same guidelines set out by FHA. Each individual bank that offers FHA loans will have their own criteria for pre-approval. Common elements will be income verification, monthly debt verification, employment verification, and credit history.
Where can one find information on streamline refinance guidelines?
One can find information on streamline refinance guidelines at the local law office of home town. One can also find information on streamline refinance guidelines online on websites like The Mortgage Report, FHA, Loan Me and Bigger Pockets.
