Changes to the FHA loan guidelines pertain to prepayment penalties, property flipping, new competition for low down payment loans and the program HAWK, explains The Simple Dollar. It also relates to student loans and employment verification, states Inman. FHA case numbers assigned after June 14, 2015 are subject to the new loan requirements.
All FHA loans initiated after Jan. 21, 2015 are exempt from post-payment interest charges, notes The Simple Dollar. Previously, lenders could collect all of the loan's interest due in the last full month. With the new rules, neither balloon payments or post-payment interest charges are possible.
Prior to June 15, 2015, student loans that were deferred for at least 12 months were excluded from debt ratios, according to Inman. This is no longer the case because underwriters must include student loan payments for FHA loans.
With the new loan requirement, an old rule is reinstated: FHA no longer finances homes that have been sold within the past 90 days, states The Simple Dollar. Exceptions include homes in federally declared disaster areas, estate sales and sales by government agencies. With the changes, Fannie Mae and Freddie Mac can purchase loans for a low loan-to-value ratio. The result is a noteworthy reduction in the amount of cash needed at closing for many buyers.