Issue: Q&A - May 25, 2018

VA – Transfer Orders – Spouse Income – When a soldier is transferred, can we use the spouse’s new job income even if they have not started?

Answer: VA doesn’t clearly stipulate how to handle these types of situations, but I’ve talked with my Regional Loan Center regarding this topic a couple times and VA is fine with using future employment as long as the loan is manually underwritten.  The reason for the manual underwrite is that you can’t satisfy the AUS findings with paystubs from the […]

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VA – Boarder Income – Is it true that VA will now allow boarder income?

Answer: While we haven’t seen the official Circular yet or the updated Handbook, VA did announce, at their lender conference in April, that boarder income will now be accepted. They indicated that all updates/changes that they announced at this conference could be implemented immediately, but my guess is that most lenders will want to see […]

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FHA – Base Loan vs. Total Loan – Is the FHA maximum loan amount for an area based on the base loan amount or total loan amount?

Answer: The maximum loan amount for your area is the limit for your BASE loan amount (without UFMIP).  Your total loan amount is your BASE loan + Your UFMIP, which combined may exceed the area limit by the amount of the UFMIP.  The important thing to remember is that the BASE cannot exceed the area […]

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FHA – Signer on Multiple Properties – Will FHA allow a person who has co-signed on an FHA loan to purchase their own home with FHA financing? [MTP™- Second Time Around]

Answer: If the co-signer was on an FHA mortgage, then they will have to be eligible to obtain another FHA mortgage based on one of the eligible circumstances that FHA allows (see guideline below). In order to disregard the previous mortgage debt on a new FHA loan, you will have to document 12 months of […]

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FHA – Purchase Contract Requirements – Spouse – Is the spouse permitted to be on the contract and title without being on the loan? [NEW MTP™ “We Are Family! How FHA Defines a ‘Family Member’”

Answer: Per the FHA guideline below the spouse’s name would not have to be removed from the Sales Contract even if they are not a borrower. Typically, the spouse will be added to title at closing without a problem; however, the loan will be closed initially in the name of the borrower only as this […]

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