Just Approved: Growing Family Cashes in on FHA Provision

San Francisco Chronicle on April 19, 2015:

Property type: Condominium in Lower Pacific Heights.

Appraisal value: $833,000.

Loan type: FHA 15-year fixed.

Loan amount: $625,500.

Rate: 3 percent.

Backstory: The buyer’s family was growing and he wanted to upgrade his primary residence so there would be more room for everyone. He has plenty of income, the ability to make a large down payment and a great credit score.

Seems like a broker’s dream scenario, right?

But there’s always a complication. The borrower not only had some derogatory credit events in his past, he also held a Federal Housing Administration loan on a separate property.

These setbacks blocked his path toward qualification.

He couldn’t refinance his FHA loan into a conventional because of the lingering credit issues, and borrowers can only have one FHA loan at a time.

Fortunately, Greer used his extensive knowledge of FHA guidelines to find a stipulation for growing families. This exemption allows borrowers with young children to have more than one FHA loan at a time. Since they had a new baby and were living in a one-bedroom, they qualified for the provision.

Greer submitted the loan for a property yet-to-be-determined and received conditional approval from the lender. The borrower then received an approval letter so he and his growing family could look for a suitable place to settle down.

https://www.sfchronicle.com/realestate/article/Growing-family-cashes-in-on-FHA-provision-6207814.php

Alex Greer

[email protected]

Direct #408-352-5147

NMLS #1056079

BRE #01930450