FHA changes in lending rules

ugly houseLooks like FHA lending rules are getting a little easier.

“Self-Employment Income

The changes to self-employment income policies affect calculation and documentation of business income where the borrower does not have a history of business income distributions.  The Guide has been updated to provide an alternative approach in which the lender can verify by confirming the borrower has (1) access to the business income and (2) there is adequate liquidity in the business to support withdrawal of earnings.  The previous method of verification remains in effect as an alternative lenders may use.

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