Issue: Q&A – March 25, 2021

Self-Employed Borrower Switches Business Structure Type

Question: We have a borrower who is self-employed. In 2019 he switched from filing a schedule C to filing 1120-S. Does he still meet the history guidelines, or does he need to wait and file his 2020 tax returns as 1120? Answer: Yes, you would need to wait. The expense structure likely changed, and there […]

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FHA Guidance for Disputed Accounts

Question: My client is trying to do FHA Simple Refinance. He has 2 disputed accounts totaling over $4,330. The comment on the credit report is Consumer disputes after resolution. Does he need to cancel the dispute? Mortgage Currentcy – Collections/Judgments/Charge-Offs Chart – All Agencies Answer: You did not mention if the disputed accounts were non-derogatory […]

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Electronic Signatures for the VA Request of Determination of Eligibility

Question: Is it acceptable for the VA Request of Determination of Eligibility to be electronically signed rather than ink signed? Answer: VA Circular 26-13-13 clarifies that electronic signatures that comply with the E-sign Act are acceptable to VA. Reference: VA Circular 26-13-13 [Article Published in Question & Answer Issue – March 25, 2021] Copyright © […]

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Transferring a VA Appraisal to Another Veteran

Question: I have a client that was in backup position on buying a house. The previous deal fell through due to financing, but a VA appraisal was done. As a VA buyer, does my client need to (or can they) use that appraisal? Answer: The original appraisal always stays with the original Veteran (A) even […]

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What Types of Properties Count in Maximum Number of Properties?

Question: My client is requesting a cash out refinance on his primary residence.  He has 11 mortgages, but 4 of those are commercial loans on duplexes.  Do the commercial loans need to be in the count? Answer: Commercial loans are not counted in the property count, only residential 1-4 unit loans would be evaluated. However, […]

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