Issue: Q&A – January 25, 2019

Fannie Mae & Freddie Mac – Business Debt in Borrower Name: Do I need to count a business debt that the borrower guaranteed? [CHART- Business Debt in Borrower’s Name – All Agencies]

Answer: Freddie Mac is a bit more lenient in this scenario than Fannie Mae. Freddie Mac states: Do not consider monthly payment in DTI if: The mortgage file contains evidence that the debt has been paid timely by the borrower’s business for no less than the most recent 12 months, and The tax returns evidence […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

FHA – Acceptable Heating Source: Will a plug-in baseboard heater that is permanently attached to the wall satisfy the heating condition for the subject property appraisal?

Answer: The appraiser has to follow the guidelines below when determining the adequacy of the heating system.  If the heater is designed to be used in exactly the manner that it is installed AND it satisfies all of the other criteria listed in the guideline below, then it may be considered acceptable.  Note that if this […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

USDA – Gift Funds – Familial Status: What is considered a family member under USDA for the purpose of receiving gift funds? [NEW CHART – Gift Funds and Gifts of Equity – All Agency Chart]

Answer: USDA and VA do not require donors to have familial ties to borrower like the other agencies.  Anyone that does not have an interest in the sale of the property (seller, builder, real estate agent, etc.) can be an eligible donor. Reference: 3555, Chap 9, Att 9-A Social Media Post: Did you know that […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

Fannie Mae – Payment of Federal Income Taxes: Does FNMA require proof that the federal income taxes due for previous year have been paid?

Answer: There are no requirements in the Fannie Mae selling guide that require a lender to show proof that federal income taxes have been paid from a prior tax year.  However, Fannie Mae does have a section on how to handle delinquent taxes in section B3-6-07, Debts Paid Off at or Prior to Closing (01/30/2018) or […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

Scroll to Top