Category: USDA

Paid Collection on a Mobile Home Listed as Mortgage

Question: Our client owned a mobile home that went into collection.  They paid the collection, but now the credit report states it was a mortgage and settled for less than the full balance.  Is this wrong or would this be considered a short sale? Answer: Unfortunately, this is not specifically addressed in the regulations. I’ve […]

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Is a Borrower Required to Pay the Subsidy Recapture on a Refinance?

Question: Our client would like refinance their USDA loan into a conventional loan.  Do they have to pay the subsidy recapture? Answer: Typically, yes. USDA RD 502 Direct loans are serviced by the Customer Servicing Center (CSC) located in St. Louis, Missouri. Obtaining a “Statement of Loan Balances” letter will assist lenders to determine if […]

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Did you know that USDA will only allow a one-unit property and not a 2-4 unit property? However, FHA and conventional will allow multi-unit properties.  If you are interested in buying a multi-unit property where you live in one unit and rent out the rest, let’s talk!

Related Article Title: USDA and Multi-Unit Properties Question: Will USDA allow a Two-Unit property if the borrower lives in one of the units? Answer: Unfortunately, no. One-unit properties are all they will allow. [Article Published in Question & Answer Issue – June 25, 2020] Copyright © 2020 – Mortgage Currentcy – All Rights Reserved

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Minimum Number of Bank Statements Needed to Verify Assets

Question: If I have a GUS Accept/Eligible, what is required to document the funds to close? Answer:Assets and Reserves Depository Accounts:  Checking, Money Market Accounts, and Savings Documentation: Two months of recent bank statements, OR Verification of Deposit (VOD) and a recent bank statement, OR Alternate evidence (example: statement printouts stamped by lender) to support […]

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USDA and Multi-Unit Properties

Question: Will USDA allow a Two-Unit property if the borrower lives in one of the units? Answer: Unfortunately, no. One-unit properties are all they will allow. Social Media Post: Did you know that USDA will only allow a one-unit property and not a 2-4 unit property? However, FHA and conventional will allow multi-unit properties.  If […]

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