What To Know For An Fha Loan In Utah
Filed Under Mortgage
In order to qualify for an FHA loan in Utah you will need the following….
1) Be currently employed, have a 2 year job history with minimal gaps, if there is a gap in the employment then a good letter of explanation and a “make sense reason” for that gap should/could be sufficient with most lenders I deal with.
2) If you are receive commissions or overtime then you will have to have received them for 2 years on order to count this income when figuring out a borrower’s income.
3) If you receive commissions 2 years of IRS tax returns will also need to be submitted so that the Underwriting department can then assess your income based on how many deductions the commissioned borrower claims
4) A 2 year proof of residence
5) Your debt to income should not exceed 45% of your gross income including the mortgage payment and all of your other debt that appears on a credit report.
6) Most investors require a minimum of a 620 middle FICO score, however, I have access to a few investors that will allow lower FICO’s
7) You must have 3.5% of the purchase price as a down payment. So, if the property you are looking at is $150,000 then ….$150,000 x 3.5%= $5250. This down payment can be gifted by a family member, employer, or your church.
Knowing these 7 things will help you to know whether or not you fit inside the basic “model” of an FHA borrower.
Please keep in mind that just because you do or don’t fit all of these criteria doesn’t mean that you do or don’t qualify for an FHA loan.
I have personally originated loans for borrowers who haven’t fit eveyone of these guidelines. The key is to have a good, no great Loan Officer, who is willing to put together a submission with the items that might make an Underwriter think, “well maybe if the borrower had _______” I’d extend a loan to them.
When applying for an FHA mortgage the more information the Loan Officer has the greater the chance they have to convey to an Underwriter why this borrower should be eligible for a mortgage based on the guidelines.
Do I hear No from Underwriters, unfortunately I do. When I do though I’m confident that I have tried every ethical and legal way I can think of to get a yes out of the Underwriter before I get the final No.
My commitment to my clients as The Low Price Lender is simple; provide the financial services for each individual client in a way that I continue a life long relationship with them. This is done with focus, a professional climate, forward thinking, constant communication, and integrity.
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