Mortgages and Guidelines by Lynne Rohde

[Lynne Rohde]

Have you recently had a loan officer say a loan couldn't work because FHA requires collections to be paid off ???? (THIS IS AN EXAMPLE)

The real answer is FHA does NOT require collections to be paid, does NOT require a borrower to have reserves in the bank, does NOT require a minimum credit score, ETC.

FHA also doesn't "buy" mortgages... FHA only insures them. So, the confusion comes in with the lenders putting "overlays" on the FHA guidelines depending on which investor is buying their loans.

Because of this I've compiled a binder (which seems to change daily) on the overlays of different investors. That's why it's even more important to have an experienced loan officer helping you and your clients in this market. With my background as an FHA underwriter and the flexibility of using different investors (not just ONE as is the case when someone goes to their bank) you can be assured the loans will close since I will be checking all the guidelines upfront so there aren't any "SURPRISES" later!