Issue: Q&A - June 25, 2018

Fannie Mae & Freddie Mac-Properties Owned by LLC: How do you refinance a property when it is owned by an LLC with 50/50 partners and only one partner will be signing the deed?

Answer: If you are dealing with a Fannie/Freddie loan, this shouldn’t be a problem. However, I do want to remind you that the loan cannot close in the name of an LLC. It must be in the name of an individual or a trust. Fannie and Freddie do not allow loans to businesses. The challenge with […]

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Freddie Mac – Installment Agreements: How does Freddie Mac handle IRS installment agreements? [NEW Mortgage Talking Point-How Lenders View IRS Installment Agreements]

Answer: Freddie Mac does not address this directly, so you have to use their guidance on “other installment debt” as shown in their selling guide. See highlighted text below. You are basically taking similar steps as Fannie Mae by getting the IRS agreement, confirming the payment ($) amount, and confirming that the payments are being made, as well […]

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Freddie Mac – Gift Donor Funds: Can a gift donor use funds from their trust account if they are the sole trustee and beneficiary?

Answer: Freddie Mac does not restrict or govern where the donor gets their funds. See excerpt below from Freddie selling guide (and highlighted text). Reference: 5501.3: Asset eligibility and documentation requirements (03/28/18) (c) Special requirements for other eligible sources of funds: Other sources of funds eligible to be used to qualify the Borrower for the […]

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Fannie Mae-Freddie Mac-FHA-VA & USDA: I used to be able to offer DACA Visa Status C-33 borrowers mortgage financing. My lenders now say “No”, is this true? [MC-Visa Training Part One & Two Class-Visa Terminology Chart-Visa Reference Chart]

Answer: Our experts and a subscriber accustomed to doing DACA loans reached out to multiple agencies to get their answers as to whether DACA is or is not acceptable. We have published the relevant parts of those responses under the Reference section. Since the rescission of DACA in February of 2018, the secondary markets have […]

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