Q&A – December 25, 2017

VA – Co-Signed Car Loan: If my borrower can prove that he does not pay for a co-signed debt, am I able to ignore that debt?

Answer: VA does allow for debts to be ignored in certain cases. (See the guideline below.) Expect an underwriter to require at least a 12-month history of payments from the holder of the loan in order to consider ignoring the debt. Reference: VA Lenders Handbook Ch. 4, 5-d: Applicant as Co-obligor on Another’s Loan (04/10/09) [...]

2017-12-28T12:47:35-05:00December 28th, 2017|

FHA – Salary + Commission Income: If a borrower receives salary + commission, can I use the commission income if the commission received is less than 1 year?

Answer: The instructions for how to calculate the commission income are explained below in the FHA guideline. However, the minimum is one year provided that the borrower is in the same or similar line of work and is reasonably likely to continue. It will be up to you and your underwriters to determine what the [...]

2017-12-28T12:46:53-05:00December 28th, 2017|

FHA – Escrow Repair: Can the sales price be increased when there is a required repair for which the seller and buyer do not have the funds to complete?

Answer: FHA will allow the increase to the sales price for the repair escrow and FHA specifically allows repair escrows in this type of situation (see guideline below). However, I must warn you that many underwriters, and the investors they work for, believe that sales price increases after an appraisal has been completed are not [...]

2017-12-28T12:45:37-05:00December 28th, 2017|

FHA – Identity of Interest: Is an employee/employer relationship considered an identity of interest?

Answer: Yes. However, FHA does allow a few exceptions to the LTV limitation for certain employer/employee transactions. See the full guideline below. Reference: 4000.1, II, A, 2, b, ii (A) LTV Limitations Based on Identities of Interest (1) Definitions: An Identity-of-Interest Transaction is a sale between parties with an existing Business Relationship or between Family [...]

2017-12-28T12:44:42-05:00December 28th, 2017|

Fannie Mae-Appraisal Waiver Form: Do you have a sample Appraisal Waiver form for Fannie Mae?

 [New Chart – Sample Property Inspection] Answer: We just added a sample form to the Mortgage Currentcy website. However, please be sure to check out the acceptability of this form with your lender as they may have their own. Sample Property Inspection Waiver Disclosure Copyright – 2017 – MortgageCurrentcy.com Supporting Resources: Sample Property Inspection Waiver [...]

2018-09-25T19:09:50-05:00December 28th, 2017|