June 25, 2015
We get lots of questions about the specifics of FHA home loans. Some of those questions involve areas that may not be covered specifically by FHA loan rules. Among the questions we got recently, there were some about the loan rules that cover a borrower’s employment status. “I got laid off from my contractor job and rehired elsewhere. The lender is asking for another paystub from the current employer in order to move forward with the loan. Is this true?”
FHA loan rules may or may not have a say in such cases, but when the lender informs the borrower that X, Y, or Z might be required in order to move forward with the loan, your loan officer may be referring to the lender’s standards and not necessarily FHA loan rules. The FHA isn’t the only agency that has a say in how the loan transaction is carried out.
You may find that in addition to FHA loan standards, the lender’s requirements, or state law, or even federal law may also be involved in how the transaction is handled.
This is true in a variety of circumstances but especially when loans involving married couples, domestic partners, or sometimes even business partners are involved. Do you know whether your state is a community property state? That can be one of the biggest non-FHA considerations for some types of FHA loan transactions between legally married couples.
Have you been involved in a bankruptcy proceeding? Depending on the type of bankruptcy and other factors you may need to get the court’s permission to enter into a new loan agreement. As you can see, there are many instances where FHA loan rules won’t be the only ones to affect your new home purchase. When it comes to appraisals of a new home, there may be building code that needs to be satisfied in order for the home to pass the appraisal. FHA minimum standards in that area are also supplemented by state/local ordinances.
When in doubt regarding these situations, it’s never a bad thing to ask the lender which set of rules is in play–does the lender require new pay stub information because of the bank’s requirements? FHA loan rules? State law? It never hurts to ask.
Do you have questions about FHA loans? Ask us in the comments section.