Q&A - July 10, 2016

Shared Well Requirements: Is a property on a community well permitted for FHA Financing?

[Download Mortgage Talking PointsTM flyer, FHA Shared Well Requirements Checklist!] Answer: FHA allows shared wells if they meet certain standards. Contact me for a handy checklist! A shared well is acceptable if all of the requirements are met. See the guideline below. Reference: 4000.1, II, A, 3, a, ii (O) (3) Shared Wells-The Mortgagee must [...]

2018-11-07T12:30:41-05:00November 3rd, 2017|

Identity of Interest – Occupant Purchase: I have a borrower that has been living at his wife’s cousin’s house for 6 years straight. Can they buy this home without having to worry about the Max 85% LTV?

Answer: Correct. See the guideline below! FHA borrowers can use maximum financing when they are purchasing a home from their family member! Call for Details! Reference: 4000.1 Handbook (A) LTV Limitations Based on Identities of Interest (1) Definitions: An Identity-of-Interest Transaction is a sale between parties with an existing Business Relationship or between Family Members. [...]

2017-12-27T12:33:53-05:00November 3rd, 2017|

Business Expenses – Mileage: Can you add back mileage claimed on a 2106 EZ form when determining the 2106 expenses?

Answer: FHA allows depreciation for Unreimbursed Business Expenses to be added back to the income. Contact me 1st! Reference: 4000.1 “Unreimbursed employee business expenses, as shown on IRS Form 2106, are actual cash expenses that must be deducted from the gross income. Depreciation due to business use of a vehicle may be added to the [...]

2018-11-26T19:56:57-05:00November 3rd, 2017|

Continuity of Obligation – Refinance: I have a wife on the loan and title. The husband is not on the title or loan. Can the husband refinance without the wife?

Answer: Great question! The answer is YES; this scenario is now acceptable due to the elimination of continuity of obligation. Copyright – 2016 – MortgageCurrentcy.com   A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

2017-12-27T12:33:54-05:00November 3rd, 2017|

Medical Collections: How does Fannie Mae treat medical collections?

Answer: Have a medical collection and want to purchase? Fannie Mae does not require it to be paid off! Call me! The requirements change, based on occupancy or unit count. Here is the guidance from Fannie Mae regarding your inquiry. Note specifically the highlighted area. Reference: B3-5.3-09, DU Credit Report Analysis (05/31/2016) Past-Due, Collection, and [...]

2017-12-27T12:33:54-05:00November 3rd, 2017|