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Trying to get a FHA loan


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6 replies to this topic

#1 spartangreen

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Posted 25 February 2012 - 05:15 PM

I finally got my credit scores over 620 at all three places. I am looking at getting a FHA loan and was told by a local credit union, i have a great chance of being approved for a $75,000 30year loan at 3.9%.


I am onin checksystem's with Bank of America from three years ago, its not on any of my credit reports. My question is, will the mortgage lender see the checksystem's entry?

Also my current bank account is only 1 month old as i switched banks to one that is closer to where i live, will that have any effect on a decision.


thanks for any advice.


I only make $28,000 a year, but i only have $2500 in debt listed on my credit report, and my current credit card utilization is 15%.



#2 spartangreen

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Posted 25 February 2012 - 06:17 PM

To add to this.

The house is being sold by my wife's mother, it was just appraised at $103,000.

She is willing to list the sale price at $95,000 with the credit union, but she only wants 80% of that, she is doing that so what we can tell the credit union we have about $20,000 for a down payment, and she will tell the credit union she received a down payment.

#3 Mortgagase

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Posted 25 February 2012 - 08:25 PM

To add to this.

The house is being sold by my wife's mother, it was just appraised at $103,000.

She is willing to list the sale price at $95,000 with the credit union, but she only wants 80% of that, she is doing that so what we can tell the credit union we have about $20,000 for a down payment, and she will tell the credit union she received a down payment.


IMO the lender will only use the credit report for qualifying.

#4 Brian B The Loan Professor

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Posted 25 February 2012 - 10:08 PM

To add to this.

The house is being sold by my wife's mother, it was just appraised at $103,000.

She is willing to list the sale price at $95,000 with the credit union, but she only wants 80% of that, she is doing that so what we can tell the credit union we have about $20,000 for a down payment, and she will tell the credit union she received a down payment.

This can be done however you have to do it legally - the way you are describing would be fraudulent and there is no reason not to do it above the board.
The MIL would need to do a gift of equity when she sales you the home - ask the CU about this and how to structure the loan.
If you went in and said she was getting the 20% for the down they would require proof of funds being transferred.

Good Luck
B

#5 spartangreen

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Posted 26 February 2012 - 05:08 PM


To add to this.

The house is being sold by my wife's mother, it was just appraised at $103,000.

She is willing to list the sale price at $95,000 with the credit union, but she only wants 80% of that, she is doing that so what we can tell the credit union we have about $20,000 for a down payment, and she will tell the credit union she received a down payment.

This can be done however you have to do it legally - the way you are describing would be fraudulent and there is no reason not to do it above the board.
The MIL would need to do a gift of equity when she sales you the home - ask the CU about this and how to structure the loan.
If you went in and said she was getting the 20% for the down they would require proof of funds being transferred.

Good Luck
B





We will be using the equity (appraised at $102,000) selling for $75,000) for down payment. FHA lets a family member sell you a house for below the appraisal cost and the equity can be gifted for the down payment.

#6 Brian B The Loan Professor

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Posted 26 February 2012 - 08:25 PM



To add to this.

The house is being sold by my wife's mother, it was just appraised at $103,000.

She is willing to list the sale price at $95,000 with the credit union, but she only wants 80% of that, she is doing that so what we can tell the credit union we have about $20,000 for a down payment, and she will tell the credit union she received a down payment.

This can be done however you have to do it legally - the way you are describing would be fraudulent and there is no reason not to do it above the board.
The MIL would need to do a gift of equity when she sales you the home - ask the CU about this and how to structure the loan.
If you went in and said she was getting the 20% for the down they would require proof of funds being transferred.

Good Luck
B





We will be using the equity (appraised at $102,000) selling for $75,000) for down payment. FHA lets a family member sell you a house for below the appraisal cost and the equity can be gifted for the down payment.

Yes FHA allows that however it must be structured correctly - You must list the sales price at the value and then the gift of equity would bring the LOAN amount down - not the sales price - there may be some tax implications for the seller so check with a CPA first - I think they can legally gift $11k a person without tax penalty or something like that (not my area of expertise but suggest you check with someone who specializes in tax law regarding this)
Good Luck hope it works out well
B

#7 Brian B The Loan Professor

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Posted 26 February 2012 - 08:27 PM

To add to this.

The house is being sold by my wife's mother, it was just appraised at $103,000.

She is willing to list the sale price at $95,000 with the credit union, but she only wants 80% of that, she is doing that so what we can tell the credit union we have about $20,000 for a down payment, and she will tell the credit union she received a down payment.

The part hi-lited is where it would be fraudulent -she cannot tell them she got a down payment - you arent giving her one - she would have to tell them she is gifting the equity and it would need to be disclosed from the beginning -
Take Care




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