Q&A – August 25, 2018

VA – Manufactured Homes – What agency will allow financing on a moved manufactured home?

Answer Only VA allows for financing of used manufactured homes that are moved from one site to another. However, be sure to check with your secondary investors for overlays! Reference:  VA Lenders Handbook, Chapter 14.04 Chapter 14.04 VA Lender’s Handbook  Additional Inspections for Used Manufactured Homes In cases involving a used manufactured home moved to [...]

2018-08-23T15:48:19-05:00August 22nd, 2018|

FHA – Well and Septic – What is the expiration time frame for a Well and Septic inspection?

Answer: The reports would be good for 120 days unless the local authority with jurisdiction declares a shorter period of validity. Reference: 4000.1, II, A, 1, a, i (A) General Requirements (1) Maximum Age of Mortgage Documents (a) General Document Age: Documents used in the origination and underwriting of a Mortgage may not be more than 120 Days old at the Disbursement [...]

2018-08-23T15:48:37-05:00August 22nd, 2018|

FHA – Amended Tax Returns – Does FHA have any guidance about the use of amended tax returns when qualifying a self-employed borrower?

Answer: No, they do not. However, I have seen many lenders and secondary markets impose overlays to this, such as requiring tax transcripts of the amended return, or proof of filing by providing a ‘stamped’ return if the amended return was done recently. Social Media Post: All lenders do not have the same underwriting guidelines, [...]

2018-08-23T15:48:55-05:00August 22nd, 2018|

FHA –100 Mile Rule – Does the 100 Mile rule apply to an FHA applicant when the home they are vacating has conventional financing?

Answer: Yes, the “100-mile” rule applies to all situations regarding rental income from a retained residence. Reference: 4000.1, II, A, 4, c, xii, (I) (3) Rental Income from Other Real Estate Holdings (TOTAL) (a) Standard Rental Income from other real estate holdings may be considered Effective Income if the documentation requirements listed below are met. If Rental Income is being derived from the Property being vacated [...]

2018-08-23T15:49:12-05:00August 22nd, 2018|

FHA – Disputed vs. Derogatory – Does FHA exclude Charge Offs and Collections that are outside of 24 months OR just the late payments outside of 24 months?

Answer: This isn’t the first time I’ve had this question, and FHA really needs to change the wording in their guidelines because it is quite confusing! Reference:  FHA Manual 4000.1 In the FHA Manual, they refer to accounts that are both DISPUTED and DEROGATORY.  I think a better way to word this would be: All Disputed Charge Off Accounts [...]

2018-08-23T16:16:42-05:00August 22nd, 2018|