Issue: Q&A – March 25, 2017

(VA) Joint Veteran Borrowers – Shared Eligibility: How do you calculate the eligibility when two veterans who are engaged but not married are buying a home?

Answer: VA allows joint loans when two veterans want to buy a home and are not married. Unless these two borrowers are married prior to loan closing, this will be a joint loan. Now a couple of notes regarding joint loans: A joint loan must be reviewed by your VA Regional Office, so you have […]

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(VA) Appraisals – Buyer vs. Property: Does a VA appraisal apply to the buyer or the home?

Answer: VA appraisals are tied to the transaction and can be re-ordered by another VA applicant if the first deal falls through, unlike FHA. VA appraisals are valid for the veteran and transaction. They are ordered for and valid for 6 months FOR THIS TRANSACTION. The case number does not ‘follow’ the property like it […]

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(FHA) Documenting Water Testing Requirements: How does a lender determine if the water derived from a well meets HUD’s requirements?

[Download Mortgage Talking Points™ flyer, Water Test Requirements – Conventional, FHA, VA & USDA] Answer: How to document a file for guideline compliance is ultimately up to the FHA-approved lender. However, I do not know how a lender could comply with this guideline without requiring a water test or a written statement from the local authority […]

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(FHA) Cash On Hand Verification: My borrower is a self-employed cosmetologist who derives a lot of income from cash. How do I verify the cash portion of her income?

Answer: FHA borrowers who receive part of their income in cash may still be able to use that portion of their income with the right documentation. The applicable guidelines are below. The Cash on Hand guideline is really speaking more to the large one-time cash deposit. It sounds as if your borrower has more frequent […]

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(FHA) Appraisals – Minimum Property Standards: Will an FHA Appraisal be more strict for roof conditions than a conventional appraisal?

Answer: FHA has specific standards for a roof. (See guideline below.) Conventional guidelines state than an appraiser must note when any conditions of the home affect the safety and soundness of the property, but offer no detailed standard for the roof. This makes it slightly less likely that a conventional appraisal would call for a […]

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