The new eligibility requirement for BOAs FHA short sale involves a Deficit Income Test; where you subtract monthly expenses from net monthly income. I’m assuming that a negative result of the DIT means the borrower is most likely qualified, but is there a minimum amount that would allow a borrower to still be eligible to move forward?
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That's not a new BofA policy, it's an FHA policy that just went into effect. FHA has always required a negative DIT in order to qualify. The new rules allow servicemembers to not have to meet the DIT test if if they received a Permanent Change of Station. Also, please be aware that financial contributions are now being required of some FHA PFS candidates. The mimimum amnt of the DIT test will vary based on the Seller's income. If they live in the home, they will have to go through their retention options (mod) before they can do PFS (unless their credit score is below 580). The rules they are a changing. . .I just read the entire Mortgagee Letter 2013-23 and am still trying to decipher a few things.
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