FHA Question

[Anonymous]

Hello everyone,

I just read something that has become very disheartening. Please tell me this is not true. Actually there are two things the 1st is You can not have any mortgage lates for two years to qualify for FHA. I thought it was a year???  I have been waiting for a year to pass to apply and I am getting close I was Late on mortgage payment in March 2008. The 2nd is you can not have 2 mortgages at the same time and that they will not accept lease agreements. I have a mortgage right now, it is not a FHA and it is an awful mobile home that I probably will never be able to sell.( maybe able to rent).

Please don't crush my dream

Looking4help!!!!

[BrianB_The_Loan_Professor]

If there is a documented reason for the late you should be fine Unless something has changed i didnt hear about (it happens) 0x30 last 12 months on mortgage is the standard)

You can have 2 mortgages but you cannot count the income from renting the second home unless there is 30% equity. Otherwise you have to qualify with both mortgages counting against your DTI

B

[WhirledPeasPlease]

I went FHA on my new house and kept my ARM on my old house that I've turned into a rental.  I definitely didn't have 30% eq in the old house and had to count BOTH mtgs in my DTI.  It was a bit tricky to do this on a single teacher's income, but I managed.  I deferred my student loans for a year and paid off my car lease in order to get my DTI to an acceptable level. 

Owning two houses is really not that much fun.  Good luck!

[dianas]

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@WhirledPeasPlease wrote:

  I deferred my student loans for a year and paid off my car lease in order to get my DTI to an acceptable level. 

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Just a couple of questions for you, Whirled. How did you get your student loans deferred? I need to do the same thing to get my DTI down. I was told if I paid off a car lease, it would still be included in DTI because I would need a new lease when this one ended. Interesting you were able to do this.

[WhirledPeasPlease]

Dianas,

Paying off my lease was a much bigger deal than getting the SLs deferred.  I had to contact GM and explain that I was NOT surrendering the car, I just needed to pay it off -- really early.  I can't tell you how many times (and with how many different people) I was asked to confirm a pickup date.  In the end I was able to PAY EARLY (not pay 'off') and keep the car until my orig surrender date.

I called Sallie Mae to ask, either thru deferments or forebearances, if I could postpone a year's worth of payments.  Luckily my account was eligible.  I was totally under the gun to get this accomplished.  It was 430PM on the day before I was set to close.  I found out the day before that my lender/UW would NOT accept my guaranteed lease agreement as guaranteed income to offset the mtg on my soon to be rental.  As soon as Sallie Mae processed my deferment, I ran into the place where I had purchased my furniture (which was set to be delivered the next day, provided I closed), used their computers/printer to print a copy of my Sallie Mae stuff, used their fax machine to send it to the lender and get confirmation that I would indeed close the following day.

What was especially frustrating was the fact that I was given the green light to close the week before.  However, someone else's packet was flagged and rejected b/c they were using the same property management group to provide the guaranteed lease agreement.  The lender/UW went back and retroactively pulled all of the packets that were waiting to close.  (Tho it was kind of funny thinking about how all of those men exchanged 'words' about this whole process.  When we finally closed I thought my realtor and the loan officer would have a good old-fashioned 'peeing' match.)  For all of my frustrations, the lender/builder agreed to install my 'after market' dishwasher free of charge.

Good luck.  This whole thing was probably the most stressful thing I've ever been through that didn't directly involve a living person.