Q&A - June 25, 2016

Asset Limits: Is there an asset limit to USDA? If so, what assets are included in the calculation and are retirement assets excluded?

Answer: Ref: HB-1-3555 Chapter 5 Form RD 3555-21, “Request for Single Family Housing Loan Guarantee,” requires both the lender and the applicant to certify that the applicant is unable to secure credit from other sources upon terms and conditions which the applicant can reasonably fulfill. The certification can be made if the applicant does not [...]

2017-12-27T12:40:14-05:00November 3rd, 2017|

Union Dues – DTI: How does VA count union dues in calculating the DTI?

Answer: You will only count the Union Dues when calculating take-home income for the residual income check performed on the Loan Analysis (Form 26-6392 – attached below). It will be entered as Other (see screen shot below). VA does not require union dues to be calculated in the DTI, only the residual income. For the [...]

2018-12-16T12:48:33-05:00November 3rd, 2017|

Down Payment Contribution – Non-Profit: Does FHA accept a gift of the down payment from a non-profit organization?

Answer: Typically, this type of scenario would be done as a Down Payment Assistance program, not a gift, since a gift requires trickier proof of funds source requirements. That said, a non-profit may provide gift funds. See the applicable guidelines below. Charitable organizations can gift a down payment to a borrower on FHA loans. Reference: [...]

2017-12-27T12:40:15-05:00November 3rd, 2017|

Fair Lending – Public Servant Discount: I’d like to offer a discount of our lender fees for school district employees, and other public servants. Will this violate Fair Lending Rules?

Answer: These types of programs used to be overlooked by the examiners, but the CFPB doesn’t quite have that opinion in their interpretation of ECOA. The issue is that two consumers could walk into your office with similar financial profiles. A school district employee could technically get a lower rate or lower cost mortgage than [...]

2017-12-27T12:40:15-05:00November 3rd, 2017|