topic Chances at FHA 203k in Mortgage Loans

Chances at FHA 203k

Anonymous — Fri, 11 Sep 2020 20:23:39 GMT

looking for get approved for a FHA 203k loan in Houston Texas Opportunity zone

Purchase & rehab Cost (135k purchase - 140k Rehab) 275,000

ARV 379,000 6 mo comps

3 CC

1 $500 Wells Fargo

1 $700 Home Depot AU

1 $11k Barclays AU

LOC 15k $250 mo.

Student loans $350 mo. 35k left

IRS installments 34k 367 mo.

4 collections

7 Defaulted student loans (closed & 90 day lates still show) {last reported 7/19} - recently completed rehabilitation

Self employed: operated as sole proprietorship - Proof of income - tax returns P&L statements

2018 $94,000

2019 107,000

20k in cash reserves in checking account plus another 40k of hard cash if necessary.

Back end DTI 34%

Seller is gifting 3.5% for down payment

Mortgage Scores

Transunion 687

Equifax 654

Experian 657

Any additional documentation should I be prepared for considering I'm a self employed sole proprietorship?

Thanks in advance

Re: Chances at FHA 203k

NC_Mtg_Loaner — Sun, 13 Sep 2020 02:42:08 GMT

So are the student loans being paid now?

HUD doesn't like borrowers who aren't paying other federal loan debts so I am wondering if they are paid off or current. You'll need to calculate 1% of the unpaid balance of those loans into your DTI as well.

Have you already obtained contractor quotes for this rehab work you have planned?

Re: Chances at FHA 203k

Anonymous — Fri, 18 Sep 2020 01:35:34 GMT

Thanks for your reply - I double checked & to my surprise I found 2 defaulted loans which were not included due to being with a totally different servicer. Currently awaiting the approval of my consolidation application to bring all student loans current & out of default.

Yes my rehab quote came from contractor quotes for rehab.