Issue: Q&A – April 25, 2020

Why do lease payments need to be counted when the lease is nearing its end?

Question: The credit report for my borrower is showing a lease payment of $400 and only a balance of $800.  They have reserves to pay that off prior to closing and he does not intent to get another lease because his company provides him with a car.  Why is my underwriter insisting that this payment […]

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Median Income and HomeReady® – What is Mandatory Income for Married Borrowers?

Question: My clients are married, and one spouse can qualify for the loan on their own.  Do I need to include their spouse, or can I leave them off the loan so that they meet the maximum median income requirements for a HomeReady® loan? Answer: The agencies leave a huge loophole for lenders to take […]

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Broker’s Compensation Added to Loan Amount for a Rate/Term Refinance & Lender Credit.

Question: Can broker compensation be added to the loan amount on a rate/term refinance when we are using a lender credit towards the closing costs?  Or, does the borrower need to bring cash to closing for the broker compensation? NEW MC Chart – Lender Paid & Borrower Paid Uses for Refinances and Credits Answer: Following […]

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Mortgage Credit Certificates and Refinances

Question: When a client’s original loan is a Housing Finance Agency Mortgage Credit Certificate, can a refinance be done while keeping the MCC tax benefit?  MCC Income Analyzer – Chart Answer: Great question!  I found something to help you in the Fannie Mae selling guide, but I couldn’t quickly find anything on this subject immediately […]

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Seasoning Rules for VA loans – Refinance

Question: Our client took out a bridge loan to use as a down payment on a new home before selling their departing residence.  Now that  their former home is sold and the entitlement is restored, does the 6-month seasoning requirement still hold since the loan being paid off is a non-VA loan? Answer: Unfortunately, the […]

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