Q&A - September 25, 2016

Continuity of Obligation: Does FHA have a continuity of obligation rule?

Answer: Continuity of obligation is not an issue with FHA; however, there are limitations based on the FHA case number date. FHA does not have continuity of obligation rules, as anyone who currently holds title is eligible to refinance. That said, there are limits placed on the allowed maximum mortgage amounts and the time that [...]

2017-12-27T12:25:44-05:00November 3rd, 2017|

Large Deposit: What is considered to be a “large deposit” in a borrower’s checking or savings account for FHA loans?

Answer: Any deposits over 1% of the adjusted value of the property require documentation. See the full guideline below. Reference: Handbook 4000.1 II.A.4.d.iii.(A) or II.A.5.c.iii.(A) The Lender must verify and document the existence of and amounts in the Borrower’s checking and savings accounts. For recently opened accounts and recent individual deposits of more than 1 [...]

2017-12-27T12:25:44-05:00November 3rd, 2017|

Marital Home – Payment Responsibility: If a divorce decree states that a spouse is not responsible for the current mortgage payment, do I need to count that against them?

Answer: A Divorce Decree that states an ex-spouse is not responsible for the marital property payment means you do not need to count it! Great question! Yes, you can exclude the payment from the ratios. You will need to provide the divorce decree showing the ex-husband is obligated to the payment. Unless the lender or [...]

2017-12-27T12:25:44-05:00November 3rd, 2017|

Non-Owner Occupied – Rental Income: Can you use the rental income on a home being purchased that already has a tenant?

[Download Chart – Fannie/Freddie Investment Property Guidlines AND Chart – Fannie/Freddie Non-Owner Occupant Co-Borrower Comparison Chart]Answer Yes – this would be acceptable. MortgageCurrentcy™ has some helpful charts / checklists on the website to help navigate these rules, which we have attached below. You will need the lease agreement as well as the 1007 or 1025 [...]

2018-11-26T19:22:14-05:00November 3rd, 2017|