Q&A - October 25, 2016

Non-Owner Occupied Multi Unit Property: What is the down payment required for a “non-owner occupied” borrower, for a 2-4 unit property?

Answer: FHA will allow a non-occupying co-borrower for multi-unit properties; however, there are down payment restrictions. Contact me for details. 75% LTV maximum is allowed when a non-occupant co-borrower transaction involves a 2-4 unit property. Reference: 4000.1, II, A, 2, b, ii (B) LTV Limitations Based on Non-Occupying Borrower Status (1) Definition: A Non-Occupying Borrower [...]

2017-12-27T12:22:56-05:00November 3rd, 2017|

Grossing Up Child Support: Are you able to gross up child support for FHA loans, even if it does not appear on a client’s tax return?

[Download Chart/Checklist, Waiting Periods to Count Child Support and Alimony – FHA/VA/USDA/Fannie/Freddie ] Answer: Child support is not considered taxable income so you will not see it on the tax return. See the full guidelines below, on documentation and grossing up of child support. Reference: 4000.1, II, A, 4, c, xii (B) Alimony, Child Support, and Maintenance [...]

2018-10-27T22:48:55-05:00November 3rd, 2017|

Property Condition & Quality of Construction: The conditions of some foreclosed homes purchased by my clients are sometimes a mess. What is considered a minor issue, and what is required to be repaired?

[Download Mortgage Talking Points™ flyer,Fannie & Freddie Appraisal Quality Rating Codes Explained] Answer: It really depends on the appraisal. If the appraiser requires changes and makes the value “subject to,” then of course you would be required to correct the issue. However, if the overall condition rating is C1 through C5, Fannie Mae allows a [...]

2018-10-28T15:06:17-05:00November 3rd, 2017|