Learn the answer to the question: Does Fannie Mae require a lender to source large deposits on a business bank account for a self-employed borrower? This article also includes the Chart-Large Deposit Guidance.
Issue: Q&A - January 25, 2018
Answer: Fannie Mae provides a path to using less than 24 months for commission income (see highlighted text below). Reference: B3-3.1-04, Commission Income (06/30/2015) Introduction This topic contains information on the verification of commission income. Verification of Commission Income The following table provides verification requirements for commission income: ✓ Verification of Commission Income A minimum […]
Answer: FHA requires coverage under the NFIP/FEMA. They don’t offer the option of private insurance coverage. See the full guideline below. Reference: (A) General Property Eligibility: The Property must be located within the U.S., Puerto Rico, Guam, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, or American Samoa. (1) Special Flood Hazard Areas: The Mortgagee must determine if […]
Answer: An LO can never ‘order’ the appraisal, even if the system is automated and the LO has no contact with the appraiser. This breaks down to a technicality and ultimately it would be the responsibility of the lender to make sure appraisal independence requirements are being met. What makes it technical is the concept […]
Updated Chart on 5/9/2018 – Student Loan Chart/Checklist- FHA/VA/USDA/Conventional Comparison Answer: VA has no prohibition in the Lenders Handbook regarding the use of IBR payments, and my conversations with my VA Regional Office have confirmed this. So IBR payments can be used to calculate DTI on a VA loan. (See the VA Student Loan guideline […]