| If you are now focusing on originating FHA loans, you | | | | another residence secured by an FHA loan. This is |
| need to know who your FHA borrowers are and | | | | permitted in the following situations: |
| what rules apply. To be eligible as a borrower on a | | | | Relocation |
| FHA loans, each person must be either a US Citizen, | | | | If your borrower is moving and establishing a new |
| Permanent Resident Alien, or Non-Permanent Resident | | | | residence that is not within a reasonable commuting |
| Alien. | | | | distance (the new residence should be at least 50 |
| Permanent Resident Aliens will be required to provide | | | | miles away from the current residence), then the |
| acceptable evidence of permanent residency issued | | | | borrower can receive an FHA loan on the new |
| by the U.S. Citizenship and Immigration Services. | | | | property without being required to sell the existing FHA |
| Non-Permanent Resident Aliens will be required to | | | | insured property. |
| provide a valid Visa or other proof of legal residency | | | | Increase in Family Size |
| along with a valid social security number. | | | | If the borrower's family grows to the point that the |
| FHA Loans are for Borrower's Primary Residence | | | | current FHA secured home is now too small to house |
| Generally, FHA loans are meant to insure only your | | | | all of the borrower's dependents, then the borrower |
| borrower's primary residence on single family | | | | may obtain another FHA secured residence. |
| residences, condominiums and any 1-4 unit property | | | | Vacating a Jointly Owned Property |
| and cannot be used for other purposes. On purchase | | | | If your borrower is moving out of a currently FHA |
| loans, the borrower must occupy the property within | | | | insured residence which will remain occupied by an |
| sixty (60) days after the loan close with continued | | | | existing co-borrower, your borrower can still apply for |
| occupancy for at least one year. Some lenders will | | | | a new FHA loan. For example, if parties are now |
| allow exceptions to this rule due to hardship or | | | | divorced, then the vacating spouse can buy another |
| extenuating circumstances. | | | | home with a FHA loan. |
| In certain cases, your borrower can apply for a FHA | | | | These are just some of the FHA lending basics with |
| loan on one property even when the borrower has | | | | which you need to be familiar. |