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Suitability of products and programs
Suitability of products and programs
The Dodd-Frank Act requires that a lender determine whether each individual borrower is suitable for a product, even if there is clear and conspicuous disclosure of product terms, and even if the lender concludes that the customer understands the product.
Suitability refers to the appropriateness of a mortgage loan’s terms for the borrower’s specific situation.
A suitability standard requires RMLOs to make certain that applicants are financially capable of handling a particular loan before and after payment increases, and that they fully understand the cons as well as the pros of the mortgage type they select.
Even if applicants are willing to sign up for home loans that are clearly beyond their financial capabilities or knowledge, the RMLO should not go along.
The most critical lender component in establishing suitability is matching a borrower with a loan that he or she can repay. A suitability standard requires RMLOs to determine an applicant’s suit-ability for a particular loan program based on:
- Employment status, income level, assets and likelihood that income or employment could change.
- Other recurring expenses and the impact they could have on the borrower’s capacity to repay.
- The potential for higher future monthly payments based on the structure of the loan program itself.
- A suitability standard also prohibit RMLOs from steering less-sophisticated borrowers to higher- cost mortgages than those for which they could otherwise qualify, such as pushing them into risky and complicated subprime loans when they could qualify for prime rates and simpler programs.
- Loans requiring counseling include:
HOEPA, HECM, FNMA Home Ready Purchase Mortgage Loans, FHLMC Home Possible Mortgage Loans
HOEPA and HPML
HOEPA A.P.O.R. 6.5% or above 50K/8.5% below/8.5% junior
HOEPA Points Fees: 5% or more $21,980 or more/8% or less and 1099
Prepayment Penalty Coverage Test = high Cost Loan if the lender charges a prepayment penalty: More than 36 months after consummation or account opening, or exceed 2% of that amount
HPML= 1.5 Conforming/2.5 Jumbo/3.5 Sub
HOEPA and QM
HOEPA can be a QM
- Can be QM
HOEPA High Cost can charge pre-payment penalty
SOCIAL SECURITY AND DISABILITY USING NONTAXABLE INCOME TO ADJUST THE BORROWER’S GROSS INCOME
SOCIAL SECURITY AND DISABILITY USING NONTAXABLE INCOME TO ADJUST THE BORROWER’S GROSS INCOME
The lender may give special consideration to regular sources of income that may be nontaxable, such as:
Child support payments.
Social Security benefits.
Certain types of public assistance payments.
Food stamps.
The lender must verify that the particular source of income is nontaxable.
award letters, policy agreements, account statements, or any other documents that address the nontaxable status of the income.
After Verification of non taxable status:
lender may develop an “adjusted gross income” for the borrower by adding an amount equivalent to 25% of the nontaxable income to the borrower’s income.
Finance Charge
Finance Charge = Anything user wouldn’t have to pay if it’s a cash deal.
Section 1 of 10 on FNMA 1003 SIX ITEMS
I. FORM 1003
TYPE OF MORTGAGE AND TERMS OF LOAN P. 1
In this section, the lender indicates:
In this section, the lender indicates:
- Type of loan applied
- Agency and Lender Case Numbers.
- Loan amount;
- Interest rate;
- Term in months
- Amortization Type
Acceptable Sources of Down Payment and Closing Cost
Acceptable Sources of Down Payment and Closing Cost
Fannie Mae requires guaranteed funds such as a cashier’s check from abank or reputable financial institution to pay the closing costs; personalchecks are not acceptable.
The proceeds from the sale of a currently owned home are a common andacceptable source for the down payment and closing costs on a new house.
Aphotocopy of the HUD-1/Closing Disclosure should be submitted to the lender.
Sweat equity is not an acceptable source of funds.
What is the name of the four federal agency that oversee the SAFE ACT?
The Conference of State Bank Supervisors,
American Association of
Residential Mortgage Regulators
Consumer Financial Protection Bureau oversee compliance with the SAFE Act.
Employment Documentation Provided by a Third-Party Employment Verification Vendor.
The lender may receive employment and income verification directly from a third-party employment verification vendor.
These verifications are acceptable as long as
- The borrower provided proper authorization for the lender to use this verification method.
- The lender has determined that the vendor has made provisions to comply with reasonable quality control requests from both the lender and any subsequent mortgagee.
- The lender understands it will be held accountable for the integrity of the information obtained from this source.
Unacceptable Sources of Reserves
Unacceptable Sources of Reserves
- Funds that have not been vested.
- Funds that cannot be withdrawn under circumstances other than the account owner’s retire-ment, employment termination, or death.
- Stock held in an unlisted corporation.
- Stock options and non-vested restricted stock.
- Unsecured borrowed funds.
- Interested party contributions (IPCs).
- Cash proceeds from a cash-out refinance transaction.
Lien Priorities
Typical lien priority and order of payoff areas follows:
- Government expenses of sale.
- Delinquent property taxes.
- Special assessment liens.
- Federal estate tax lien.
- 1st mortgage (Senior Mortgage).
- 2nd mortgage (Junior Mortgage).
- 3rd mortgage (Junior Mortgage).
Unlimited possible number of additional junior mortgages, in order ofrecording time. - IRS Tax Liens and other creditors.
Risk Analysis OBLIGATIONS INCLUDED IN LIABILITIES
OBLIGATIONS INCLUDED IN LIABILITIES
The lender’s risk analysis must include all liabilities affecting income or assets that will affect the borrower’s ability to fulfill the mortgage payment obligation.
FHA Loan Program Type
FHA Loan program types: 203b-fixed rate- 10 to 30 yrs 251-ARM 203k- purchase and rehab (construction) 234c-condominiums HECM Streamline refinance
Credit Report
Credit Report = 120 days
Credit app is valid for = 90 days
Designated zones for flood insurance
Designated zones for flood insurance
All flood zones beginning with the letter “A” or “V
Lien Priorities
Lien Priorities
GPS-F Senior Junior Tax
Government Expenses Property Taxes Special Assessment liens Federal Tax lien Senior mortgage Junior mortgage IRS tax liens
Four Types or Qualified Mortgages
There are four types of QMs – General, Temporary, Small Creditor, and Balloon-Payment (bridge Loan)
1) General QM:
no negative amortization, no interest-only or ballon payments, 3% points and fees, no loan terms in excess of 30 years, no balloon, 43% DTI
2)Temporary QMs (Transitional Period) no negative amortization, no interest-only or ballon payments, 3% points and fees, no loan terms in excess of 30 years, no balloon, must keep loan for three years, also eligible to be insured by the Federal Housing Administration or Rural Housing Service, flexible DTI,
3) Small Creditor QM:
no negative amortization, no interest-only payments, 3% points and fees, no loan terms in excess of 30 years, no balloon, must keep loan for three years, flexible DTI
4) Balloon-Payment QM:
no negative amortization, no interest-only payments, 3% Point Fees, 30 years, 43% DTI
Loan Estimate New Information
New Info on Loan Estimate
TIP - Total payment while mortgage insurance is in place compared to when it is no longer in place.
Comparison of payments made and principal reduction in the first five years of the loan.
Estimated cash to close shows earnest money deposit deducted.
Delivery of appraisal to borrowers
Likelihood of future refinance transactions
A place for borrowers to sign that they received the LE
LE is only for TRID coverages = construction, large lot, vacant land, Five or fewer loans per year
Forms used to authorize the release of information
Blanket Authorization Form
Rather than having the applicant sign multiple forms, the lender may have the applicant sign an authorization form which gives the lender blanket authorization to request the information it needs to evaluate the applicant’s creditworthiness.
When the lender uses this type of blanket authorization, it must attach a copy of the authorization form to each VOD it sends to the depository institutions in which the applicant has accounts.
Section 7 of 10 on FNMA 1003
FORM 1003
VII. DETAILS OF TRANSACTION
The information listed here pulls from the Loan Estimate/Good Faith Estimate. The details of transaction information section is used to display how much money the borrower will need in order to closing the transaction The final figure should be the same as the amount reflected on the Loan Estimate/Good Faith Estimate.
Section 8-10 Page 4
Delivery dates
Satisfaction of Mortgage letter = 60 days after loan paid off
Initial Til = 3 days after application
Initial Til = Placed in Mail 7 business days after application
Loan Estimate (Business Days) = Mailed 7 days before consummation
Revised Loan Estimate (Recession Day) = must be received 4 business days prior to the consummation of the loan.
Revised GFE =
Closing Disclosure = Received three business days before consummation
Lender Refund Variance HUD-1 = 30 days
Lender Refund Variance In LE and CD = 60 Days
Final Til (APR) = 3 business days finalized prior to closing
HUD-1 (Final Statement of Closing Cost) = 1 business days before closing if borrower request
HUD-1 = Federally Related mortgage loans, and Reverse
ECOA Appraisal independence = sent our Promptly or three days before consummation
An appraisal report = is valid for six months but needs to be recertified after four months
FHA Appraisal = valid for 120 days
Covered Loans
Respa Covers = Fed related , manufacture homes, refinance,
TILA Covers = HELOC, Manufactured home, homebuyer assistance program, APR, Refinance recision, ARM , Mobile, subordinate
TRID Covers = Closed End, Construction-only loans., Loans secured by vacant land, Loan with 25 or more acres.
HOEPA Covers = CROP = Purchase-money mortgages, Refinances, Closed-end home equity loans, Open-end credit plans (HELOCs).
HPML Covers = 3rd Party Verification, can pay for 7 years of loan, debt credit verification, No Pre-Payment Penalty
Ability to Pay/QM Covers = Closed End , Primary and Investment Property
Frank Dodd: includes closed-end loans, not open-end loans. A closed-end loan means the amount borrowed has to be paid back at a certain time.
If the Gross Rent Multiplier (GRM) decreases, the property value:
A.) Increases B.) Decreases C.) Does not change D.) Can increase or decrease B.) Decreases
B
Non-employed income versus non-taxable income
Non-employed income is from sources other than employment or self-employment and includes retirement income, interest, and dividend income, rent, or royalties.
nontaxable, such as: Child support payments. Social Security benefits. Certain types of public assistance payments. Food stamps.
TRANSACTION COVERED BY THE ABILITY TO REPAY RULE
TRANSACTION COVERED BY THE ABILITY TO REPAY RULE
The Ability to Repay Rule (ATR) applies to almost all closed-end consumer credit transactions secured by a dwelling including subordinate lien loans.
Residential structures covered under the rule include :
- One to four units.
- An individual condominium unit.
- Cooperative unit.
• Mobile home.
• Trailer if it is used as a residence.
Timing of title reports and commitments.
Timing of title reports and commitments.
After appraisal and before title policy insurance is issued.
A title insurance binder is a commitment that lists all the known defects.
The title insurance policy itself is issued after closing, and the title insurance premiumis a one-time closing cost to either the seller or borrower. Who pays is a matter of convention and negotiation.
Stated Income vs Non-Qualifying Loans
Stated income loans or no-doc mortgages
Lenders just needed a borrower’s stated income — hence the name “stated income” loans.
To compensate for the risk being taken by your mortgage lender, stated income loans usually have higher interest rates and requires the following:
- Large amount in savings
- High credit score requirement (700+)
- Bank statements are needed
- High level of income
Non-income verifying loan
No income verification mortgages are home loans for which the lender doesn’t require you to prove that your income meets certain requirements. Generally, when you apply for a mortgage, you’re required to show proof of income through pay stubs and W-2 forms. However, income verification can be difficult for some borrowers, especially those who are self-employed or who receive a commission-based salary. In this case, a no income verification mortgage may be used.
Methods of verifying employment
This verification can be provided by the borrower, by the borrower’s employer, or by third-party employment verification vendor.
The lender must verify employment income for all borrowers whose income is used to qualify for the mortgage loan.
A two-year employment history is required for both wage earner and self-employed borrowers.
TYPES OF ClASSIFICATION ASSETS
TYPES OF ClASSIFICATION ASSETS
The applicant must show sufficiency in two areas:
- Liquid Assets
Liquid assets are cash on hand or any tangible or intangible item that can be converted quickly and easily into cash, typically without losing much of their value.
Liquid assets typically include:
- Any cash on hand if sourced.
- Funds in a checking account.
- Funds in a savings account.
- Funds in a money market account.
- Certificates of Deposit.
- Mutual Funds.
- Stocks.
- Bonds.
- Non-liquid asset
An asset or possession that cannot be converted into cash quickly.
Non-liquid assets are the tangible property of a borrower, such as:
- Buildings.
- Furniture and other Household Goods.
- Real estate.
- Automobiles.
- Office Equipment.
- Appliances.
- Sporting Equipment
Borrowers should demonstrate positive net worth.
For most borrowers, non-liquid assets must be counted to establish positive net worth.
Reserve requirements for multiple properties on a . 1-4 property home is A. 2% B. 4% C. 6% D. 8%
Answer A
Multiple Properties Reserve:
1-4 Properties = 2%
5-6 Properties = 4% of the aggregate UPB (Unpaid Balance Principal)
7-10 Properties = 6% of the aggregate UPB if the borrower has seven to ten financed properties (DU only).
Hypothecation
Hypothecation occurs when an asset is pledged as collateral to secure a loan, without giving up title, possession, or ownership rights, such as income generated by the asset
Model State Law Federal Banking Agency
Model State Law Federal Banking Agency
The Board of Governors of the Federal Reserve System
Director of the Office of Thrift Supervision
National Credit Union Administration.
Comptroller of the Currency.
Federal Deposit Insurance Corporation.
Acceptable assets that may be used for a down payment
Acceptable assets that may be used for a down payment
Must be verified - Funds held in a checking, savings, money market, certificate of deposit, or other depository accountsfunds may be used for the down payment, closing costs, and financial reserves must be verified. Unverified funds are not acceptable for the down payment, closing costs, or financial reserves.
REQUIRED DISCLOSURE HPML APPRAISAL
REQUIRED DISCLOSURE for HPML
The creditor shall disclose the following statement, in writing, to a consumer who applies for a higher- priced mortgage loan:
We may order an appraisal to determine the property’s value
and charge you for this appraisal. We will give you a copy of any
appraisal, even if your loan does not close. You can pay for an
additional appraisal for your own use at your own cost.”
The disclosure shall be delivered or placed in the mail no later than the third business day after the creditor receives the consumer’s application for a HPML. In the case of a loan that is not a higher priced mortgage loan at the time of application, but becomes a higher-priced mortgage loan, the dis-closure shall be delivered or placed in the mail not later than the third business day after the creditor determines that the loan is a HPML.
Temporary buy down
Temporary buy down
A temporary buy down is created when funds are placed in escrow outside the control of the borrower or the lender to offset the monthly payment required by the terms of the note.
The funds in escrow reduce the effective payment rate but not the note rate.
A temporary buydown may be for 1, 2, or 3 years. A buy down for 2 years is referred to as a 2-1 buy down and one for 3, is notated as a 3-2-1.
To illustrate, a 2-1 buy down for a typical 30-year fixed rate mortgage at 7% with two points could carry an effective payment of 5% in year 1, 6% in year 2 and then revert to the note rate of 7% in year 3.
Section 10 of 10 of FNMA 1003
SECTION X: INFORMATION FOR GOVERNMENT MONITORING PURPOSES
The final section on the 1003, “Information for Government Monitoring Purposes,” is related to government statistics. The section is referred to as the Home Mortgage Disclosure Act (HMDA) Section. It requests information regarding race, sex and ethnicity. The application includes a para-graph explaining that none of this information can be used to discriminate against the loan applicant, stating that the applicant can opt not to complete this section. If the applicant decides not to furnish this information, it will be up to the loan originator to make an “educated guess” concerning the demographic information to report to the government (only in regards to face-to-face applications; not Internet, mail, or telephone).
BENEFITS OF PMI
BENEFITS OF PMI
Financing with mortgage insurance creates opportunities for borrowers.
Increased Buying Power: Mortgage insurance makes it possible to buy a home with less than 20% down.
Homebuyers can reach savings goals faster and become homeowners sooner than otherwise possible.
Move-up buyers are able to consider a wider range of homes and leverage their invest-ment in their current home.
Escrow Requirement
Escrow And Reserves
FNMA Reserve Requirements = 2 months mortgage PITI payments
Respa Escrow= 2 months advance
HPML Escrow = 5 years
HPML that is QM Loan = exempt from HPML appraisal escrow rule
Initial Escrow Stmt: Itemizes the estimated taxes, insurance premiums, and other charges anticipated to be paid from escrow acct. in first 12 mos., including any cushion though usually given at settlement, the lender has 45 days from settlement to deliver
Completion Escrow
The lender establishes a “completion escrow” for the postponed
improvements, by withholding from the purchase proceeds funds equal to atleast 120 percent of the estimated cost for completing the improvements.
Settlement/Closing Agent
Settlement/Closing Agent
The person in charge of the closing must be independent, as he or she represents all sides of the transaction and makes sure that all the terms of the contract are met.
The escrow or closing agent’s general responsibilities include:
- Holding financial deposits in trust.
- Writing detailed closing instructions based on the purchase agreement.
- Gathering all legal documents related to the transaction.
- Ordering a title examination or preliminary report on the property
- Clearing all title issues discovered during the search.
- Securing title insurance.
- Collecting documents from the buyer’s lender.
- Making sure all terms and conditions of the purchase contract are met.
- Recording the deed and other necessary documents.
- Ensuring that the process moves along smoothly and that the transaction closes on time.
Employment Documentation Provided by the Borrower’s Employer.
The lender may use the Request for Verification of Employment VOE to document income for a salaried or commissioned borrower.
- Verification of Employment (VOE). This document is used by mortgage lenders to verify the employment history of a borrower, to determine the borrower’s job stabil-ity and cross-reference income history with that stated on the 1003. Lenders require a completed VOE declaring all positions held for the last two years of employment histor y.
When the borrower authorizes the lender to obtain verifications of employment and income directly from the employer, the lender must have the borrower:
- Sign a VOE or
- Sign a signature authorization form, which gives the lender blanket authorization to request the information it needs to evaluate the applicant’s creditworthiness.
Documentation for SELF-EMPLOYMENT INCOME
Documentation for SELF-EMPLOYMENT INCOME
When determining the appropriate qualifying income for a self-employed borrower, it is important to note that business income (specifically from a partnership or S corporation) reported on an individual IRS Form 1040 may not necessarily represent income that has actually been distributed to the borrower.
The fundamental exercise, when conducting a self-employment income cash flow analysis, is to determine the amount of income that can be relied on by the borrower in qualifying for their personal mortgage obligation.
Lenders generally require a two-year history of the borrower’s prior earnings as a means of demon-strating the likelihood that the income will continue to be received. The lender will verify a self-employed borrower’s employment and income by obtaining from the borrower copies of his or her signed federal income tax returns (both individual returns and business returns) that were filed with the IRS for the past two years (with all applicable schedules attached).
Information on Form 1003
Information on Form 1003
The Uniform Residential Loan Application (URLA) is the official application form for all residential loans and is the central document of the residential loan application process. The URLA form 1003 gathers all the crucial information about the prospective borrower that the lender will need to evaluate the applicant’s creditworthiness.
There are two form 1003s used in the processing of the loan application:
• Initial form 1003
• Final form 1003
The Initial 1003 application must include sufficient information for the underwriter to reach an informed decision about whether to approve the mortgage loan.
The Final 1003 application is prepared at the time of loan closing and is prepared by the lender.
Before or at the loan closing, the borrower(s) must sign the Final 1003 application that the lender prepares based on its verification of the information that the borrower(s) provided in the Initial 1003 application.
Appraisal Law
The Home Valuation Code of Conduct (HVCC) = prevents a mortgage
broker from choosing the appraiser for loans that are sold to Fannie Mae.
appraiser must keep client information and appraisal results confidential. Results can only be reported to the client, client-authorized individuals, state regulatory agencies and peer review committees
Closing Cost
Closing Cost = responsibility of Buyer fees paid in return for the services of all who were involved in the homebuying process. These include fees assigned by lenders, appraisers, title companies and governments.
For each liability, the lender must determine
For each liability, the lender must determine:
- The unpaid balance.
- The terms of repayment.
- The borrower’s payment history.
- Verify any other liability that is not shown on a credit report.
If the credit report does not contain a reference for each significant open debt shown on the loan application (including outstanding mortgage debt, bank, student, or credit union loans) the lender must provide separate credit verification.
If a current liability appears on the credit report that is not shown on the loan application, the borrower should provide a reasonable explanation for the undisclosed debt. Documentation may be required to support the borrower’s explanation.
Percentage of bank account assets attributable toward a loan application
Acceptable assets that may be used for a down payment: 50% of your gross monthly income.
Title Theory
Title Theory State: which the mortgagee (lender) or a third party keeps the deed until the loan is satisfied.
The borrower has equitable title in which they are allowed to occupy, rent and sell the property, but the security instrument may be a deed of trust, instead of a mortgage.
borrower does not receive the deed at closing and deed of trust may be the
security instrument.
Pre-paid Interest = Per Diem
Pre-paid Interest = Per Diem
Reserve and loan type
Reserve - Conventional Loans
Primary residence - 2 months (could be as high as 6 months).
Vacation homes - 3-4 months.
Investment property - 6 months.
Reserve - FHA Loans
• No reserves for 1-2 units.
• 3-4 units - 3 months.
Reserve - VA Loans
• No reserves for 1-2 units.
• 3-4 units - 6 months.
Services you cannot shop for
Services you cannot shop for = Anything that the borrower can use to compromise the result
Flood,appraisal
Multiple property reserve
Multiple Properties Reserve:
1-4 Properties = 2%
5-6 Properties = 4% of the aggregate UPB (Unpaid Balance Principal)
7-10 Properties = 6% of the aggregate UPB if the borrower has seven to ten financed properties (DU only).
Prepaid Items
Prepaid Items - Prepaids are expenses or items that the homebuyer pays at closing, before they are technically due. They are necessary to create an escrow account. Prepaids can include:
• Property Taxes.
• Hazard Insurance.
• Private Mortgage Insurance.
• Flood Insurance.
• Special Assessments.Occupancy types
Occupancy types
- Primary home: This means you are buying a house that you will be living in most of the time.
- Occupied by the borrower for at least six months out of the year and the address of record for taxes, voter registration, etc.
- Located within a reasonable commuting distance to the borrower’s place of employment
- Borrower declares an intention to occupy the property as a primary residence
- The property must be occupied by the borrower within sixty (60) days of closing or completion - Second home: This is a house you intend to occupy for only part of the time. The house must also be: - suitable for year-round occupancy (i.e., not an unheated cabin in a remote area) - distant from your primary residence. - Available for the borrower’s exclusive use and enjoyment.
Second home must not be:
- Subject to any timesharing or other shared ownership arrangement
- A unit in a condominium hotel – aka “condotel”
- Subject to any rental pools or agreements that require the Borrower to rent the property, give a management company control over the occupancy of the property, or involve revenue sharing between any owners and the developer or another party.
- Investment property: This is aproperty you are buying to either rent out, flip, or both.
Section 3 of 10 on FNMA 1003
BORROWER INFORMATION P. 1
III. FORM 1003 -
BORROWER INFORMATION P. 1
The borrower will be asked to provide the following:
Full name of the primary borrower, Social Security Number, home phone, age of the borrower, and number of years of school completed.
Borrower’s present address, and whether the borrower is a renter or owner. If the borrower has been living at his or her present address less than two years, former address information will be required.
The marital status of the borrower. Federal regulations state that borrowers are only permitted to be asked, “Are you married, unmarried or separated?” If the borrower states he or she is unmarried, the lender cannot ask if he or she is single, widowed or divorced because this is a violation of the Equal Credit Opportunity Act.
Section 8 of 10 on FNMA 1003
VIII. DECLARATIONS
In this section, the borrower(s) will be asked to answer questions about any legal problems or other issues (past or present) that may affect their financial standing.
For example:
- Are you presently delinquent or in default on any Federal debt or any other loan, mortgage, financial obligation, bond, or loan guarantee?
- Are you obligated to pay alimony, child support, or separate maintenance?
- Is any part of the down payment borrowed?
- Are you a co-maker or endorser on a note?
The declarations also require the loan applicant to disclose his/her status as a U.S. citizen or as a permanent resident alien.
If an applicant indicates in his or her response states that they are not a U.S. citizen, and also indi-cates in his or her response to that they are not a permanent resident alien, the RMLO may wish to ask whether the applicant is a non-permanent resident alien or otherwise is lawfully present in the United States.
EMPLOYMENT GAPS
EMPLOYMENT GAPS
Lenders must verify employment for the most recent two full years. Borrowers must provide written explanation for employment gaps that span one or more months. Lenders will generally will not deny a loan based solely on the presence of significant employment gaps.
Conventional Conforming guidelines consider income stability above job stability. A borrower with gaps in employment but returned to work in the same line of work within the past two years may still qualify if they advance in income or benefits.
Acceptable reasons for extended employment gaps include:
- School/Education: Borrowers who have been in school full time, the schooling is considered the same as employ-ment history.
- Military: Borrowers in the military during the most recent two full years.
- Same Line if Work: A borrower with gaps in employment but returned to work in the same line of work within the past two years may still qualify if they advance in income or benefits
UFMIP on FHA
UFMIP on FHA = 1.75 of loan amount
