Issue: Q&A – February 25, 2020

Former VA Loan Given in Error, Affecting New VA Loan Status

Question: I have a client who currently owns a home with a VA loan.  They are selling their present home and simultaneously closing on a new home using VA.  VA is now saying that the Veteran should not have received the entitlement when he purchased the last home because he only served 4 years instead […]

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FHA Requirements for “Charged-Off” Accounts

Question: My client has a charge-off from several years ago.  Is this required to be paid off prior to closing? Answer: No.  A charged-off account would not need to be paid off unless it reappeared as an active collection, and then it would depend on the circumstances.  See the full guideline below. Reference:FHA Handbook 4000.1 […]

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Self-Employed Borrower Schedule C Add-Backs for Mileage/Vehicle?

Question: I have a self-employed borrower who does not have vehicle depreciation on his schedule C but does have a mileage deduction.  Will Fannie Mae allow this add-back? Answer: The last time the agencies addressed mileage rates as available income source was in the 2017 selling guides; since that time there is no longer any […]

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Minimum Time Frame to Occupy a Fannie Mae Financed Property

Question: Do Conventional loans require an occupancy on property within 60 or 90 days? Answer: Typically, the borrower shall establish, occupy, and use the principal residence within 60 days after the execution of the security instrument. However, this can vary by states.  So, also refer to the applicable state security instrument form for requirements. Reference:Fannie Mae B2-1-01 […]

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Verifying Foreign Income for Dual Citizenship U.S. Resident

Question: I have a client who has dual citizenship as a US Citizen and Canadian Citizen.  They previously lived in the States, moved to Canada and are now relocating back to the States.  The client is able to keep her job from her Canadian employer because she is permitted to work remotely.  The issue is […]

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