Answer: There is no specific guidance regarding the location of the pro-rated tax credit on the LE, as there is on the CD. This means it becomes a lender’s decision based on the best available information. A consensus from our compliance experts stated the following: The purpose of the LE is to present a true […]
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Answer – FHA Says: While FHA has a ‘6-month rule’ regarding gaps in employment, I do not believe that your situation is necessarily a ‘gap in employment’. The 6-month rule is referring to borrowers who leave the workforce for 6 months or more. It sounds as if your borrower never stopped working. That said, 1099 income […]
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Answer: When a veteran borrower and a non-veteran or non-spouse borrower do a VA loan together it is called a Joint Loan. On a joint loan, the veteran borrower’s VA entitlement will only provide the necessary 25% guaranty on the veterans 1/2 of the loan. The 25% guaranty for the non-veteran borrower’s 1/2 of the […]
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Answer: See highlighted text below from FNMA selling guide. You will notice that there is NO requirement to provide bank statements from the donor. Any lender/underwriter requiring one would be asking for more than what the selling guide requires. Reference: B3-4.3-04: Personal Gifts (09/29/2015) Documentation Requirements Verifying Donor Availability of Funds and Transfer of Gift […]
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Answer: There is no VA regulation that would prohibit the use of rental income based on the renter being a family member. Social Media Post: VA has no regulation that would prohibit the use of rental income based on the renter being a family member. [Article Published in Question & Answer Issue – October 25, […]
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