What is a Non-Qualifying FHA loan?
I recently got pre-approved for an FHA gift loan. I am currently in the process of shopping for homes and on some listings, I see "Non-Qualifying FHA?: No" beside it? Does this mean that a person with an FHA loan cannot buy this home?
- Ed AtunLv 71 decade agoBest Answer
Up until 1988 anyone who got an FHA loan could sell their house and allow the buyer to take over the existing FHA loan. This made the home sales so easy. There were no questions asked. None. The buyer just entered her name as the new owner so the mortgage company would send her the coupon book.
The listing forms still have a box for FHA Non Qualify: yes, no. since they haven't existed since 1988, it should be removed from the form.
- 4 years ago
It is very doubtful since 720 is the lowest score that they will approve.