Issue: Q&A – October 25, 2020

Child Support as Reduction of Income vs. Liability

Question: Will VA allow child support to be deducted from the income, or must it always be treated as a liability? Answer: Spousal support may be treated as a reduction in income on VA Form 26-6393, Loan Analysis.Child support payment is treated as a liability on VA Form 26-6393, Loan Analysis. Reference: VA Lenders Handbook, […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

Documenting Income from Sole Proprietor to LLC

Question: My client was a sole proprietor for the last 5 years.  In January of 2020 he formed an LLC.  How do I document his income? Answer: At a minimum, he would at least need one-year returns showing the transition. So, you would need at least the 2020 returns for the new ownership as an […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

Verifying HUD Tag Information

Question: How does the lender verify the HUD tag information on a manufactured home? Answer: FHA requires that either the HUD tag information be reported on the appraisal by the FHA appraiser or the lender must obtain it from the Institute for Building Technology and Safety (IBTS) at https://lvr2.ibts.org/#/LandingPage  Reference:4000.1 II.A.1.b.iv(B)(5)(c)(i) and II.D.5.f. The HUD Certification […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

Waiting Period for a Cash/Out After a Rate/Term

Question: My client did a cash-out refinance to pay off debt. Rates have gone down further, so now they are considering a rate/term refinance.  Is there a required waiting period? MC Refinance Chart – All Agencies Answer: There is no established waiting period, other than you or your lender may have to pay a premium […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

COVID Overlay – Proof of Retirement Liquidation

Question: Fannie Mae has a COVID overlay that states if you are using stocks or retirement accounts you must show liquidation. What is Freddie’s stance? For instance, do they allow for no liquidation when you have 20% or greater of what you need without proof of liquidation? Answer: Unfortunately, Fannie Mae and Freddie Mac align […]

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.

Scroll to Top