4. Borrower Eligibility and Credit Analysis

A. Borrower Eligibility Requirements

This section contains the following sub-sections. Select one to view it, or click here to view them all together on a page like this one.

• 1. Borrower, Coborrower and Cosigner Eligibility Requirements
• 2. Ineligible Borrowers
• 3. Citizenship and Immigration Status
• 4. Living Trusts
• 5. Non-Purchasing Spouses
• 6. Eligibility Requirements for Nonprofit Organizations and State and Local Government Agencies
• 7. Eligibility for Federally Related Credit
• 8. Using Credit Alert Interactive Voice Response System (CAIVRS) to Determine Eligibility for FHA-Insured Mortgage Transactions

B. Property Ownership Requirements and Restrictions

This section contains the following sub-sections. Select one to view it, or click here to view them all together on a page like this one.

• 1. General Information on Property Requirements and Restrictions
• 2. Eligibility Requirements for Principal Residences
• 3. Eligibility Requirements for Secondary Residences
• 4. Investment Property Eligibility and Underwriting Requirements

C. Borrower Credit Analysis

This section contains the following sub-sections. Select one to view it, or click here to view them all together on a page like this one.

• 1. General Guidelines for Analyzing Borrower Credit
• 2. Guidelines for Credit Report Review
• 3. Evaluating Non Traditional Credit and Insufficient Credit
• 4. Borrower Liabilities: Recurring Obligations
• 5. Borrower Liabilities: Contingent Liability
• 6. Borrower Liabilities: Projected Obligations and Obligations Not Considered Debt

D. Borrower Employment and Employment Related Income

This section contains the following sub-sections. Select one to view it, or click here to view them all together on a page like this one.

• 1. Stability of Income
• 2. Salary, Wage and Other Forms of Income
• 3. Borrowers Employed by a Family Owned Business
• 4. General Information on Self Employed Borrowers and Income Analysis
• 5. Income Analysis: Individual Tax Returns (IRS Form 1040)
• 6. Income Analysis: Corporate Tax Returns (IRS Form 1120)
• 7. Income Analysis: "S" Corporation Tax Returns (IRS Form 1120S)
• 8. Income Analysis: Partnership Tax Returns (IRS Form 1065)

E. Non Employment Related Borrower Income

This section contains the following sub-sections. Select one to view it, or click here to view them all together on a page like this one.

• 1. Alimony, Child Support, and Maintenance Income
• 2. Investment and Trust Income
• 3. Military, Government Agency, and Assistance Program Income
• 4. Rental Income
• 5. Non Taxable and Projected Income

F. Borrower Qualifying Ratios

This section contains the following sub-sections. Select one to view it, or click here to view them all together on a page like this one.

• 1. General Information on Borrower Qualifying
• 2. Debt to Income Ratios
• 3. Compensating Factors