Q&A - July 25, 2018

Fannie Mae – Current Principal Residence Pending Sale: Can you close on a new property before your present property closes?

Answer: Yes, provided you meet the following criteria. This guideline/policy applies to any/all loan types Fannie Mae offers. Remember that you need an executed purchase contract and all financing contingencies removed/cleared. Reference: B3-6-06, Qualifying Impact of Other Real Estate Owned (06/30/2015) Current Principal Residence Pending Sale If the borrower’s current principal residence is pending sale, but [...]

2018-07-25T07:55:49-05:00July 24th, 2018|

VA – Offer Letter: What is the VA Policy for using income to qualify when a person does not start by the closing date?

Answer: VA does not have specific guidance regarding future income/job offers except in the case of an active duty service member who is soon leaving active duty and has a civilian job offer. The documentation requirement that you see on your AUS findings is for VA’s alternative documentation option.  This requirement is for a paystub covering [...]

2018-07-25T07:56:58-05:00July 24th, 2018|

VA – New Guidelines-Refinance Seasoning: Under the VA new guidelines, does the seasoning requirement of 210 days apply?

Answer: Under the new VA refinance guidelines, you can do a cash-out refinance in certain cases with no seasoning requirements and have it guaranteed by VA. HOWEVER, Ginnie Mae issued a bulletin (attached below) that says because of the Consumer Protection Act signed into law on May 24, 2018, the seasoning guideline applies and they [...]

2018-07-25T07:57:16-05:00July 24th, 2018|