Issue: Q&A – January 25, 2021

Renovation Programs for a Second Home

Question: Our client has a second home that is paid for, gutted and without running water.  They want to take out a home loan to renovate the property to standard living conditions.  Is there an option for them? Answer: Yes! Fannie Mae offers what they call the HomeStyle® Renovation which supports second homes. Keep in […]

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Combining a 1st & 2nd Under a Rate/Term Refinance

Question: Our client has a 1st mortgage and then took out a 2nd [HELOC] to do a renovation.  All of the funds from the HELOC were used for renovation and we have receipts.  Can I do a rate and term refinance or is this considered a cash-out? MC Refinance Chart-All Agency Guidance Answer: For Fannie […]

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Requirements for Non-Occupying Borrowers – Daughter in College

Question: My clients want to buy a home for their daughter to live in while she is in school and after she graduates this year.  The daughter has a job and a credit score, so will this work? MC Chart – Non-Occupant Co-Borrower Guidelines Answer: As long as she is a borrower, will be occupying […]

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Can You Use One Credit Score?

Question: Our borrower is only reporting one credit score.  Can we use this score, or do they need to have 3 credit scores reporting? Answer: As long as DU or LPA accept the one score, that would be acceptable. Fannie and Freddie do not require you to have three scores, just that you have at […]

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Using Rental Income on a 2 Unit as First Time Homebuyers

Question: My client is a first-time homebuyer with great credit, but no history of receiving rental income or property management experience.  Are we able to use rental income for the second unit to qualify? MC Chart – Rental Income Answer: It all depends on whether or not the borrower has a current housing expense (that […]

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