Need Help Immediately Please: FHA Loan in Jeopardy in 10th Hour

[Anonymous]

Thanks for reading.  I need help asap.  I got a FHA case number prior to 9/15 because I have 180k in student loans.  I was notified at the underwriting stage the home I was to purchase was a flip and the the flippers did not wait the 90 day period of time stipulated by the government therefore my case number means nothing and I have lost the appraisal and inspection monies paid.

If I try to purchase conventional, I need to understand how it can be done.  I am finishing up a masters degree as we speak how can I get a proposed IBR payment ?  If I continue with FHA and get a new case number, will FHA allow a proposed IBR payment ?   Is there a way I can do this?

Please, I need solutions.

Thanks.

[Anonymous]

 Conventional loans will use the greater of 1% or the actual monthly payment.

FHA loans will use the actual monthly payment unless the payment is $0. If the payment is zero, you can ask the creditor what the proposed future monthly payment will be. If they will not provide this, you have to use 2% of the balance as a monthly debt. This applies to all case numbers after 9/14.

[Anonymous]

This may be work.  I understand that FHA does not need an "amoritized payment".  

[Anonymous]

---

@Anonymous wrote:

This may be work.  I understand that FHA does not need an "amoritized payment".  

---

Correct. Conventional loans require a payment that will fully amortize the loan without payment adjustments to use a monthly payment that is under 1% of the outstanding balance. FHA does not require documentation showing the payment will fully amortize the loan without payment adjustments.

[Anonymous]

---

" FHA does not require documentation showing the payment will fully amortize the loan without payment adjustments."

dpeezy: Thank you for being willing to answer questions here!

From my (potential) lender: "because an income based repayment plan is temporary and is revisited each year with the potential of payment increases FHA does not feel comfortable qualifying their borrowers on something that can change that frequently.  They understand the potential of payment increases with income increases so they prefer to qualify their borrowers on a worst case scenario.  Because of this we will need to factor in the fully amortized payment.  If documentation of this payment cannot be obtain we will calculate 2% of the balance as a monthly obligation."

I am just starting with a lender and they are telling me I need 3 years (post close) of an amortizing loan schedule to even pre-approve me. I am in IBR with nothing due monthly, but I can easily change that to something due each month, if all that I need to submit is a current monthly payment. Is my lender mistaken or am I misunderstanding? I hope they are just adjusting to the new guidelines.

Additionally, if I did need to provide 3 years, couldn't I submit three years of IBR calculations based on the income assumptions that are being used for my loan?

I am in Nor-Cal as well and would be happy to use you as my lender, if at all possible.

[StartingOver10]

I was gonna say "change lenders" to you...then you said it yourself in the last line. Go ahead a pm dpeezy, best solution to your issue.

[Anonymous]

---

@Anonymous wrote:

---

" FHA does not require documentation showing the payment will fully amortize the loan without payment adjustments."

dpeezy: Thank you for being willing to answer questions here!

From my (potential) lender: "because an income based repayment plan is temporary and is revisited each year with the potential of payment increases FHA does not feel comfortable qualifying their borrowers on something that can change that frequently.  They understand the potential of payment increases with income increases so they prefer to qualify their borrowers on a worst case scenario.  Because of this we will need to factor in the fully amortized payment.  If documentation of this payment cannot be obtain we will calculate 2% of the balance as a monthly obligation."

I am just starting with a lender and they are telling me I need 3 years (post close) of an amortizing loan schedule to even pre-approve me. I am in IBR with nothing due monthly, but I can easily change that to something due each month, if all that I need to submit is a current monthly payment. Is my lender mistaken or am I misunderstanding? I hope they are just adjusting to the new guidelines.

Additionally, if I did need to provide 3 years, couldn't I submit three years of IBR calculations based on the income assumptions that are being used for my loan?

I am in Nor-Cal as well and would be happy to use you as my lender, if at all possible.

---

I sent you a PM.