New Kentucky FHA Mortgage rules starting June 2015 CAVIRS Old Rule – Federal debt makes borrower ineligible New Rule – VERIFIED federal debt makes the borrower ineligible Part-Time Income Old Rule – Underwriter discretion allowed when received less than 2 years New Rule – Two years uninterrupted part-time income is required. Average income over prior 2 years or use 12-month average of hours at the current pay rate if the lender documents an increase in pay rate. Rental Income on Retained Primary Residence Old Rule – Rental income may be counted when relocating outside of reasonable commute distance for job and borrower has 25% equity. New Rule – Rental income may be counted when relocating and the new residence is at least 100 miles from previous residence. If no history of rental income since the last tax filing, borrower must have 25% equity. Non-taxable income Old Rule – Gross up using tax rate evidenced on last tax return. If borrower did not file a return, use tax rate of 25%. New Rule – Gross up using the greater of 15% or actual tax rate. If borrower did not file a tax return, use tax rate of 15% Installment Debts Less Than 10 Months Old Rule – May be excluded from ratios. If manual underwrite—may be excluded if debt will not affect ability to pay the mortgage. New Rule – May be excluded ONLY if—they have cumulative payment of less than or equal to 5% of the borrower’s gross monthly income AND the borrower may not pay the debts down to achieve this percentage. Multiple FHA Loans Old Rule – If relocating for employment, borrower may obtain a second FHA loan for a new principal residence if current residence is more than a reasonable commute to new residence. New Rule – If relocating for employment, the commuting distance between the old residence and new residence must be more than 100 miles. source http://www.mortgagetalkingpoints.com/2015/04/7-major-fha-rule-changes-eff-june-15-2015/ Senior Loan Officer (NMLS#57916) American Mortgage Solutions, Inc. 800 Stone Creek Pkwy, Ste 7, Louisville, KY 40223 phone: (502) 905-3708 Fax: (502) 327-9119 kentuckyloan@gmail.com Company ID #1364 | MB73346 http://mylouisvillekentuckymortgage.com/

1. Expert in FHA, VA, USDA, KHC, Loans
Senior Loan Officer
Joel Lobb
kentuckyloan@gmail.com
mylouisvillekentuckymortgage.com
Louisville KY 40223
10602 Timberwood Circle 3
American Mortgage Solutions, Inc.
15029053708
502-905-3708
502-905-3708
Cell
Office
57916
FHA CAN BE YOUR BEST OPTION
EMPOWERING BUYERS...MOVING LISTINGS
FHA can be your buyers
best option for achieving
the dream of
homeownership.
Use my exper se and FHA criteria to excite your buyers and sell your lis ngs!
American Mortgage Solutions Inc. NMLS # 1364 / MB73346 Information is subject to change without notice. This is not an offer for extension of credit or a commitment to lend. NMLS #1364, KY MB73346
FHA can provide a be er alterna ve
to Conven onal Loans.
Low down payment
Flexible credit review
Fixed or adjustable rate
Limited closing costs;
sellers can help pay closing costs
No prepayment penalty
Streamlined documenta on on re nances