Q&A - January 25, 2017

NMLS – Compliance – NMLS Number on Advertising: Is my NMLS number required to be on my advertisements?

Answer: Under the SAFE act, both State and Federal employees must display their NMLS ID’s on advertising. We also have some great reference materials on the rules of the Safe Act located on the MortgageCurrentcy™ website. I’m attaching those links in the reference section. Reference: [12 CFR § 34.105 (OCC), 12 CFR § 208.105 (Federal Reserve), [...]

2018-10-27T21:51:25-05:00November 4th, 2017|

USDA – Identity of Interest: Does USDA have any guidelines regarding buying a home from a parent?

Answer: USDA does not have an “identity of interest” requirement when a family member sells a property to another family member. I think your concern is probably associated with the fact that FHA loans have what is called “identity of interest” requirements that impact the loan to value (LTV). USDA has no such requirements. Other [...]

2017-12-27T12:15:46-05:00November 4th, 2017|

VA – Waiting Period to Refinance: Does VA have a waiting period for a rate and term VA loan when the home is listed for sale?

Answer: VA clients who want to refinance do not have a wait period if they have previously listed their home for sale. VA has no restriction on refinancing homes that were previously listed for sale. However, I have seen secondary market investors put an overlay on this. Copyright – 2017 – MortgageCurrentcy.comA subscription is required [...]

2017-12-27T12:15:47-05:00November 4th, 2017|

VA – Debt Obligations – Child Care Expenses: Are child care expenses included in the DTI & residual calculations, or just the residual calculations?

Answer: Significant child care expenses are considered on VA loans, but not FHA or conventional loans. Child care expenses, if determined to be ‘significant’, are included in both the DTI calculation and the residual income calculation. The first guideline below from Chap 4 Sec 9 explains this, and the second guideline from Chap 4 Sec [...]

2017-12-27T12:15:47-05:00November 4th, 2017|

FHA – Length of Obligation Requirements – Lease Payment: If a lease payment is under 10 months, do I need to count this payment against the client?

Answer: If your client has a leased car payment that is ending soon, we may not need to count that as a debt for FHA Financing. Contact me! FHA allows any closed-end debt (this would include a lease) to be disregarded per the requirements below. Reference: 4000.1, II, A, 4, b, iv (A) General Liabilities and [...]

2017-12-27T12:15:47-05:00November 4th, 2017|