Q&A – August 25, 2017

VA – Collection of Appraisal Fees: How can we collect for an appraisal on a VA loan?

Answer: You cannot have any borrower pay an appraiser directly; however, you can collect the appraisal fee from a veteran separately at application, just like you would with any other borrower, when you are using the Itemized Fee structure. VA does not dictate the actual fee collection procedure of the approved lender as conducted through [...]

2017-12-27T11:58:24-05:00November 4th, 2017|

FHA – Establishing Familial Relationship for Gift Funds: My borrower received a gift for an FHA loan from a friend of 50 years; the underwriter says no, and that they must be related! 

[Includes Chart – FHA – Gift Funds Donors and Documentation] Answer: There’s a rumor going around that a gift donor on an FHA loan must be an immediate family member. Wrong! Call me for the truth. A Close Friend is an acceptable donor. See the guideline below! Reference: Handbook 4000.1 II.A.4.d.iii.(F) or II.A.5.c.iii.(F) Gifts refer [...]

2018-04-24T15:53:54-05:00November 4th, 2017|

FHA – Judgment Not on Credit Report: A QC check picked up a judgment on my borrower that did not show up on the credit report. How did this happen?

Answer: There are new standards at the credit bureaus regarding judgments and liens. Contact me for the full update. The three nationwide consumer credit reporting agencies − Equifax, Experian, and TransUnion − announced plans to implement a public record data standard effective in July 2017 that is designed to improve the accuracy of credit reports. [...]

2017-12-27T11:58:24-05:00November 4th, 2017|

FHA – Cash-Out/Equity from Other Property for Down Payment: Can a borrower take cash out of a conventional financed property to get the down payment for an FHA loan for a primary residence?

Answer: Collateralized loans used to fund a down payment are acceptable for FHA loans. Tweet me for other tips and tricks! Yes. Collateralized Loans are an acceptable source for the Borrower’s Minimum Required Investment (MRI) to obtain FHA-insured financing. A Collateralized Loan is a loan that is fully secured by a financial asset of the [...]

2017-12-27T11:58:24-05:00November 4th, 2017|

FHA – Non-Occupying Borrower: Can a person have more than one FHA loan as a non-occupying co-borrower, if neither is a primary residence?

Answer: FHA does not allow a borrower to be “co-borrower” on more than one FHA loan unless one of the homes is their primary residence. As you can see by the guideline below, once a borrower is a non-occupying co-borrower on one FHA loan, the only circumstance that will allow them to obtain a second [...]

2017-12-27T11:58:24-05:00November 4th, 2017|