We offer FHA Mortgage loans in New York – Brooklyn, Bronx, Queens, New Jersey, California, Connecticut, District of Columbia, Georgia, Illinois, Pennsylvania, Maryland, North Carolina, Oregon, Colorado, Massachusetts, New Hampshire, Rhode Island, South Carolina, Virginia, & Florida – Located in Bergan & Hudson County, NJ.

NorthStar Funding Says “Yes”

FHA has several loan programs to promote homeownership, and Northstar Funding is your perfect partner to close those transactions. From start to finish, we accelerate the closing process by preempting hurdles and overcoming obstacles using our years of experience and a vast selection of investors. Plus, we offer more FHA loan programs from more investors than any other broker in the country. If your loan presents unexpected hurdles, we will work to overcome them together to find a home for your loan. We understand the mortgage process can be overwhelming, and we are comfortable taking that burden from you, letting you focus on your family, careers, hobbies, and staying healthy. You can be assured that we will help you close your FHA loans smoothly and efficiently.

FHA LOANS Min Fico 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 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.

• Credit scores as low as 500
• Cash-out with low credit scores for FHA Conforming and FHA High Balance
• FHA Conforming Fixed and ARM and FHA Fixed High Balance
• HUD Real Estate Owned (REO) with $100 down per HUD approval.
• FHA Streamline with no appraisal, no income, 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 more significant than you think; ask about 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.

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

 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 less than 40 hour work week

 commission income

 commission income earned for less than one year

 employer differential payments

 retirement income

 Social Security income, and

 automobile allowances and expense account payments.

https://www.hud.gov/sites/documents/4155-1_4_SECD.PDF

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^{NorthStar Funding Says Yes to NO BIG BANK OVERLAYS!}

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.

4155.1 4.D.2.b Overtime and Bonus Income

Overtime and bonus income can be used to qualify the borrower if he/she has received this income for the past two years and will likely continue. If the employment verification states that the overtime and bonus income is unlikely to continue, it may not be used in qualifying.
The lender must develop an average bonus or overtime income for the past two years. Periods of overtime and bonus income of fewer than two years may be acceptable, provided the lender can justify and document the reason for using the income for qualifying purposes in writing.
Reference: For more information on overtime and bonus income earning trends, see HUD 4155.1 4.D.2.c.

Have you been affected by COVID-19 and/or decided to change from being self-employed or receiving 1099 to earning a steady paycheck? Northstar Funding Says, Yes to using your current salary or hourly/base rate to calculate Effective Income for employees whose hours do not vary. See FHA Seller Guide for determining a borrower’s income stability. If you have a self-employment history be prepared to provide copies of signed tax returns for the most recent two years and the most recent pay stub. We will look to verify a 2-year work history. See pages 1-23 of the FHA Letter for determining the effective Income used in calculating the borrower’s income ratios

To be eligible for a mortgage, FHA does not require a minimum length of time that a borrower must have held a position of employment. However, the lender must verify the borrower’s employment for the last two full years. The borrower must explain any gaps in employment that span one or more months and indicate if he/she was in school or the military during the most recent two full years, providing evidence supporting this claim, such as college transcripts or discharge papers.

Newly employed as W-2 or recently had a promotion at work? Northstar Funding gives you full credit for non-varying salary or hourly/base income. A written Verification of Employment form VOE is required.

The FHA Letter HUD 4155.1 Chapter 4, Section D says, The underwriter should favorably consider a borrower for a mortgage if he/she changes jobs frequently within the same line of work, but continues to advance in income or benefits.

https://www.hud.gov/sites/documents/4155-1_4_SECD.PDF

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Returning to the workforce after taking several years off to raise children?

4155.1 4.D.1.d Borrowers Returning to Work After Extended Absences

https://www.hud.gov/sites/documents/4155-1_4_SECD.PDF

A borrower’s income may be considered effective and stable when recently returning to work after an extended absence if he/she

 is employed in the current job for six months or longer, and
 can document a two-year work history before an absence from employment using
-traditional employment verifications and/or
-copies of W-2 forms or pay stubs.

Example of an acceptable borrower’s extended absence

Note: An acceptable employment situation includes an individual who took several years off from employment to raise children, then returned to the workforce.
Important: Employment situations not meeting the criteria listed above may only be considered as compensating factors. Extended absence is defined as six months.

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