IssueM Articles
Question: My client owns a second home and rents it out minimally throughout the year. I do not need this income to qualify the borrower. If they have any rental income on their tax returns, is this still considered a second home? Answer: Fannie Mae’s second home requirements state “If the lender identifies rental income […]
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Question: My client has a full-time job and does real estate on the side. We are not counting any income from real estate, but my underwriter is insisting on the tax returns for this income. Does FHA require the underwriter to evaluate the self-employed income if we are not using it to qualify the borrower? […]
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Question: My client took a job promotion in another state and he and his wife will be moving there. The wife is currently employed but may or may not work in their new location. Will USDA require us to add her income when considering county income limits? Answer: USDA RD regulation HB-1-3555 Chapter 9 states […]
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Question: I have a self-employed client who receives W2 income from his company. There is a difference between box 1 “Wages” and box 5 “Medicare Wages”. He states his Medicare Wages is the employee deferral for a 401k contribution. Which income should I use? Answer: Generally, a W2 is only used to support someone’s annual […]
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Question: Does USDA only allow for Primary Residence or are there other types of occupancy? Mortgage Currentcy Chart – Occupancy – All Agency Comparison Answer: USDA only allows for primary residence. We do have a chart on occupancy. I have provided the link below. Supporting Resource: Mortgage Currentcy Chart – Occupancy – All Agency Comparison […]
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