Issue: Q&A – July 25, 2017

Credit – Copy of Credit Report: Can a Mortgage Broker provide a borrower with a copy of the credit report pulled?

Answer: The FCRA is the governing Act for rules surrounding this topic and this specifically addressed in section 607(c). I cannot speak to the legalese within the actual rule, and you should seek out a legal opinion on what comprises “users” in the 607(c) statements. I would also conclude that 607(c) would only allow this […]

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USDA – Household Income – Separation: If a couple is separated, does the spouse’s income count in the “total household income”?

Answer: Qualifying for a USDA loan requires the consideration of the entire household income. Contact me for exceptions. Income Sources Considered for Annual Income: The income of an applicant’s spouse, unless the spouse has been living apart from the applicant for at least 3 months (for reasons other than military or work assignment), or court […]

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VA – Tolerance Changes for Monthly Payment: Does VA have any tolerances for a loan payment change after a loan has been approved and before it has been closed?

Answer: VA does not provide any separate tolerance guidance regarding automated underwriting findings, so you would refer to the agencies themselves for tolerance information for Fannie (DU) and Freddie (LPA). Neither would require that the loan be resubmitted to the system if there was a housing payment reduction. That said, I’ve seen many investors that […]

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VA – Joint Loan – Unmarried Couple: Is it possible to do a VA loan for a non-married couple when only one of them is a veteran?

Answer: You can do a VA joint loan with a non-veteran, but you can’t do it at 100% LTV, which is usually the primary reason that veterans choose this loan program and therefore a deal killer as they sometimes find a conventional or FHA product a better fit in terms of down payment requirement. If […]

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FHA – Charge Off Accounts with Balances: Do non-medical charge-off accounts with balances need to be paid off or show a zero balance to qualify for an FHA loan?

Answer: Lenders consider charge-offs and collections differently when evaluating credit. Contact us for clarity! A charge-off account technically cannot have a current balance as it is a charged-off item and has been written off by the creditor. Any balances showing on the credit report for a charge-off is merely showing the last balance reported at […]

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