We offer FHA Mortgage loans in California, Colorado, Connecticut, District of Columbia, Florida, Georgia, Illinois, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Texas, and Virginia.

NorthStar Funding Says “Yes” to FHA Loans

FHA offers several loan programs to promote homeownership, and NorthStar Funding is your ideal partner to close these transactions. From start to finish, we accelerate the closing process by preempting hurdles and overcoming obstacles, leveraging our years of experience and a vast investor network. Plus, we offer more FHA loan programs from more investors than any other broker in the country. If your loan encounters unexpected hurdles, we will work together to overcome them and secure a home for it. We understand the mortgage process can be overwhelming, and we are comfortable taking that burden off you so you can focus on your family, career, hobbies, and staying healthy. Rest assured, we will help you close your FHA loans smoothly and efficiently.

FHA Mortgage loans are available with a minimum FICO score of 550. Approve Eligible Yes, Follow AUS Findings!

• FHA – 550+ Min Fico Approve Eligible / NO OVERLAYS-NONE!
• FHA – 550+ FICO for PURCH, RT, C/O including Flips & High Balance
• FHA – 580+ REFERS ELIGIBLE ARE OK!—no overlays -u/w directly to 4000.1 FHA Seller Guide
• FHA – 580+ MANUALS up to 50% DTI (with two compensating factors)
• FHA – 550+ No DTI CAP – Follow AUS Findings! (with approved eligibility)
• FHA – 550+ NO Minimum Credit History or Trades with AUS Approval!
• FHA – 550+ – No VOR Unless Required by DU Findings!
• FHA – Transfer appraisals from ANY lender/AMC, OK!
• FHA – ORDER YOUR APPRAISAL FROM 20+ AMC–YOU CHOOSE!
• FHA – Collections – HUD Guides Apply
• FHA – Mortgage Lates OK if AUS Approved
• FHA – ESCROW STATE – Non-Purchasing Spouse derogatory ignored – only affects DTI
• FHA – Borrower w/ Work Permits, Non-Resident Alien OK!
• FHA – DACA Borrowers OK!
• FHA – EAD CARD AND ITIN, DE NADA!
• FHA – 1 Day off Market for Cashout Refi! – Must be off the market before the date of the loan application!
• FHA – Rental Income on 2-4 units OK FTHB
• FHA – STREAMLINE – 550 Minimum
• FHA – Streamline – 550 Score – No Appraisal, No Income, No AVM, No Credit Qualifying!
• FHA – Streamline -Investment and 2nd Homes OK!
• FHA – Streamline – Mortgage-only credit report on subject property!
• FHA – 100% CLTV Program – 580 MIN FICO 2nd mortgages are processed simultaneously

Contact us today for more information.

Additional FHA Loan Programs

• Credit scores as low as 500
• Cash-out with low credit scores for FHA Conforming and FHA High Balance
• FHA Conforming Fixed, ARM, and FHA Fixed High Balance
• HUD Real Estate Owned (REO) with $100 down per HUD approval
• FHA Streamline with no appraisal, no income, and a mortgage-only credit report
• Good Neighbor Next Door with $100 down per HUD approval
• Energy Efficient Mortgages (EEM)
• FHA Standard and Limited 203(k) rehabilitation loans
• FHA High Balance loan amounts are larger than you might think; ask for details
• Back to Work: Reduced wait times for bankruptcy and foreclosures are allowed

Talk to your local NorthStar Funding Account Executive to find out how your customers can use local Down Payment Assistance Programs in conjunction with FHA financing. Cash-out refinance transactions are not eligible in Texas. See your NorthStar Funding Account Executive for DAP eligibility requirements. *NorthStar Funding’s programs neither originate from nor are expressly endorsed by any government entity. Get started today.

Income Qualifying Guidelines

Introduction to qualifying a borrower using salary, wage, and other forms of income:

• General policy on borrower income analysis
• Overtime and bonus income
• Overtime and bonus income earning trend
• Qualifying part-time income
• Income from seasonal employment
• Primary employment with less than 40-hour work week
• Commission income
• Commission income earned for less than one year
• Employer differential payments
• Retirement income
• Social Security income
• Automobile allowances and expense account payments

Reference: HUD 4155.1 Section D – Income Analysis

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NorthStar Funding Says Yes to NO BIG BANK OVERLAYS!

Planning to retire in the first three-year period of obtaining a mortgage?

If any benefits expire within the first three years of the loan, the income may be considered a compensating factor:

• Documented retirement benefits
• Social Security payments or
• Other payments expected to be received in retirement
• Retirement income must be verified by the former employer or from Federal tax returns. If any retirement income, such as employer pensions or 401(k) distributions, ceases within the first full three years of the mortgage loan, that income will be considered a compensating factor.

Social Security Income Verification

Social Security income must be verified by the Social Security Administration (SSA) or from Federal tax returns.

Notes:

• The lender must obtain a complete copy of the current awards letter.
• Not all Social Security income is for retirement-aged recipients; therefore, documented continuation is required.
• Some portion of Social Security income may be “grossed-up” if deemed nontaxable by the IRS. Reference: For information on grossing-up income, see HUD 4155.1.4.E.5.b.

Find out your payment – MORTGAGE CALCULATORS.

NorthStar Funding Says Yes to 24-HOUR TURN-TIMES ON APPROVALS

RULE OF THUMB

The lender must analyze the income of each borrower who will be obligated for the mortgage debt to determine whether the borrower’s income level can be reasonably expected to continue through at least the first three years of the mortgage loan.

In most cases, a borrower’s income is limited to salaries or wages. Income from other sources can be considered as effective, if properly verified and documented by the lender.

• Lenders must not ask the borrower about possible future maternity leave.
• Allowances can be made for seasonal employment, typical for the building trades and agriculture if documented by the lender.

TOTAL Scorecard Accept/Approved Recommendation

If the Technology Open To Approved Lenders (TOTAL) Scorecard returns an Accept/Approve recommendation, the borrower is not required to explain gaps in employment of six months or less during the most recent two years.

Note: A borrower with a 25% or greater ownership interest in a business is considered self-employed and will be evaluated as a self-employed borrower for underwriting purposes.

References: For more information on seasonal employment, see HUD 4155.1 4.D.2.d and HUD 4155.1 4.D.2.e self-employed borrowers and income analysis, see HUD 4155.1 4.D.4, and the TOTAL Scorecard recommendations, see the TOTAL Mortgage Scorecard User Guide.

• In addition to normal employment verification, a borrower employed by a family-owned business is required to provide evidence that he/she is not an owner of the business.
• A combination of one year of employment and formal education or training in the line of work in which the individual is self-employed or in a related occupation is also acceptable.
• Commission income must be averaged over the previous two years. To qualify with commission income, the borrower must provide copies of signed tax returns for the last two years and the most recent pay stub.