Issue: Q&A – December 25, 2020

Income Calculation for Temporary Unemployment During COVID – Union Worker

Question: I have a Union worker who was on unemployment until September due to COVID.  We have a letter from his union rep stating that the layoff was due to COVID and that he is still gainfully employed with the Union and is back to work. How do I calculate his income? Answer & Reference: […]

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Gift of Equity from a Trust

Question: My client is purchasing a property from an Irrevocable Trust that he is named in.  Is the trust permitted to offer him a gift of equity for the purchase? MC Chart – Gifts & Gifts of Equity Answer: Trusts and/or estates are not eligible gift donors and must come from individuals only. This is […]

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Exceeding the Maximum Loan Amount when Using a Piggy-Back Loan – NEW MC Chart – FHA Secondary Financing

Question: Will FHA allow a Piggy-Back/HELOC with a CLTV of 90% in order to meet the FHA loan limits? NEW MC Chart – FHA Secondary Financing Answer: Unfortunately, not. FHA requires that the Base Loan Amount plus secondary financing amount must not exceed the Nationwide Mortgage Limits (See the applicable guideline below). Reference: 4000.1 II.A.4.d.i.(J) […]

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Counting Maintenance Fees as Debt for Paid Off Time Shares

Question: My client has a timeshare that is paid off.  Will Fannie Mae or Freddie Mac require the maintenance fee to be counted in the debt obligations? Answer: There is no specific topic in either agency’s selling guides to say that maintenance fees need to be added. Rather, this falls under the general guidance of […]

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Refinance Wait Period with DPA Program

Question: If a client is securing an FHA first mortgage combined with a down payment assistance program, how long is the waiting period to offer a refinance? Answer: Assuming you want to use the appraised value of the home for the refinance, the 2 loans together could be paid off and refinanced as a rate […]

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