1. Student Loans: FHA has allowed deferred student loans to be excluded from the ratios and that ends September 14th, 2015. In addition, if the payment isn't available, 2% of the balance must be used to qualify the borrower.
Tip: Search for and document the actual payment since it will most often be less than the 2% of the balance amount.
2. Under 10 months left on installment debt: As long as this amount is less than 5% of the gross income, it can be excluded.
3. Authorized users: Accounts for which a borrower is an authorized user must be included in DTI unless it can be shown that the borrower has not made any of the payments for the last 12 months. If less than 3 payments have been required in the last 12 months, then debt must be included.
4. Earnest Money: Previously, EM of 2% or more required documentation. The new rule is to verify and document the deposit amount and source of funds if the deposit exceeds 1% of the sales price or is excessive based on borrower’s history of savings.
5. 30-day accounts: (paid off monthly) don't need to be included if the balance has been paid each month for the last 12 months. Otherwise, 5% of the outstanding balance must be used.
Questions to Consider:
Will certain loans need case numbers before September 14 based on changes?
Will some loans be possible after September 14?
Can these changes have a positive impact?
There are over 37 changes that you can find out about now.