Q&A - December 25, 2016

FHA – Student Loan Payment Calculations: The amount the borrower is paying is different from 1% of the balance and the “Fully Amortized” payment. Which payment should we use?

[Download Updated Chart – Student Loan Chart/Checklist- FHA/VA/USDA/Conventional Comparison] Answer: The new guideline on student loan payments (which I feel has extremely tricky wording) would allow you to use the “fully amortized” payment as long as you can document that the payment is truly fully amortizing. The only time you would have to use 1% of [...]

2018-10-27T22:07:05-05:00November 3rd, 2017|

FHA – New Construction – Checklist Reference: FHA New Construction is so confusing. Is there a chart that helps me figure out what I need?

[Download Chart – FHA New Construction Documentation Requirements for Maximum Financing (Effective 12-22-2016)] Answer: FHA New Construction can get complex! Contact me for a Free Reference Chart that makes it easy! Yes, we have developed a new chart that divides the guidelines into “Proposed Construction,” Under Construction and Existing, but under a year. This chart will help [...]

2018-10-27T22:07:52-05:00November 3rd, 2017|

FHA – Foster Income – Public Assistance Income: How do we use foster income or other public assistance income when qualifying a borrower for an FHA loan?

Answer: Foster income can be used to qualify for a mortgage. The new 4000.1 Handbook doesn’t specifically name ‘foster care’ income in its guidance. The old 4155.1 only named foster care income as an allowable form of non-taxable income. So, we have to look at Other Public Assistance for our documentation guidance. Reference: 4000.1 (F) [...]

2017-12-27T12:17:37-05:00November 3rd, 2017|

Freddie Mac – Self Employed Borrowers-Documentation Required: I’ve heard that Freddie Mac is requiring only 1 year of income tax returns for some self-employed borrowers. Is that true?

Answer: Self-employed borrowers who have been in business more than 5 years will only need one year of tax returns for Freddie Mac. You have heard correctly. We published this in the November 2016 issue of MortgageCurrentcy™. Reference: I’m attaching the link for your convenience. [View Past Article – Freddie Mac-Revisions to Income Qualification Requirements-Bulletin 2016-19] [...]

2017-12-27T12:17:37-05:00November 3rd, 2017|