Issue: Q&A - February 25, 2018

FHA – Visa Status: If a borrower has a J-1 Visa working on her medical residency and has a sponsored employer, will she be eligible for an FHA loan? [New Chart – Interactive VISA Status Chart]

Answer: FHA provides no detail on the acceptability of visas and requires the lender to determine that the borrower resides and works in the US legally and their residency status and income is stable and likely to continue for at least 3 years.  We have attached our Interactive VISA Status Chart which was just released and […]

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Fannie Mae – Use of Seasonal Income: Can seasonal income be used to qualify for a loan?

Answer: There are two types of secondary income – a true Second Job, where the income should be uninterrupted, and Seasonal Income, which would be seasonal based on a borrower who earns this income in their “time off” during the year.  For instance, teachers and school bus drivers may have several months where they pick […]

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Compliance – Lock Policy: As a correspondent lender, do we need to have a consistent pricing policy for lock extensions, or can this be flexible based on the investors we use?

Answer: This is an issue that most lenders must deal with as they progress from broker to correspondent.  As a correspondent, you are technically the lender, whereas as a broker, your investor was technically the lender.  The lender must demonstrate fair pricing policy to reduce the risk of disparate treatment.  This is why some adjustments […]

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VA – Maximum Loan – Exceeding County Limits: How do you calculate the maximum VA loan when the VA loan exceeds the county limit? [VA Guaranty Calculation Examples Chart]

Answer: Calculations are standard, and all lenders have to do it in the same way since the secondary markets require a 25% guaranty on the loan. We have attached below a Guaranty Example document created by VA that is housed on the Mortgage Currentcy site to use as a reference when doing maximum loan amount […]

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VA – Unemployment Income: Can unemployment income be used to qualify a VA borrower, or used as residual income?

Answer: Unemployment income can only be used when your borrower has a stable history of collecting it due to the nature of their work.  For example, certain trades may only work March-November due to weather.  If your borrower has an established 2-year history of collecting unemployment during the months he’s not working, then VA allowed […]

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