Q&A – September 25, 2017

USDA – Maximum Assets to Still Qualify: What are the maximum assets that a client can possess without triggering a traditional conventional credit loan?

Answer: Certain assets can trigger a USDA borrower into a traditional credit loan. Be sure to check those out first by contacting me. Note the following requirements from the USDA Manual. Reference: B. Obtaining Credit Form RD 3555-21, “Request for Single Family Housing Loan Guarantee” requires both the lender and the applicant to certify that [...]

2018-10-05T19:23:50-05:00November 4th, 2017|

VA – Seller Credits Exceed Closing Costs: What will VA allow us to do with excess seller credit when the credit exceeds the closing costs and there is no down payment? 

[Download Chart – VA Borrower Fee and Expense Matrix] Answer: VA looks at seller concessions a little differently than other types of financing. Contact me and I will explain! VA loans are extremely unique in the allowable costs they will let a seller pay. There are several (again, unique) ways that these extra funds can be [...]

2018-10-05T19:24:19-05:00November 4th, 2017|

VA – Property Restrictions – Mixed Use: What is the percentage of commercial space to residential space for a VA property?

Answer: VA allows the purchase of a mixed-use commercial and residential property as long as the commercial space is 25% or less of square footage. VA limits the commercial use square footage of an eligible property to 25% of the entire square footage. Reference: VA Handbook Section 12.03 Any nonresidential use of the property must [...]

2017-12-27T11:55:21-05:00November 4th, 2017|

FHA – Proximity to Electrical Towers: What is the guideline for a home that is an “unsafe distance” from an Electrical tower?

Answer: FHA will finance properties next to an Electrical Tower as long as they are outside of the easement. FHA does not define “unsafe distance” in their new guideline below. They used to beautifully explain (see the quoted information from an FHA FAQ on Valuation Protocol – also below) that if the property wasn’t in [...]

2017-12-27T11:55:21-05:00November 4th, 2017|