Q&A – September 25, 2018

FHA – Restricted Stock Units as Income – Can restricted stock units be used as income to qualify for repaying a mortgage?

Answer: Restricted Stock Units (RSUs) have become a popular compensation and talent retention option for many tech companies.  This income can be really confusing, as this ‘compensation’ is taxed as income (typically at vesting) based on the value of the stock at that time.  RSUs themselves are not considered income for qualifying purposes on an [...]

2018-09-25T09:59:30-05:00September 25th, 2018|

Credit – Freezing Credit – What is the difference between locking credit, freezing credit and a fraud alert? [NEW MTP™ – Guide to Freezing Your Credit!]

Answer: With all of the credit breaches and identify theft going on, consumers have been on high-alert regarding their credit. Locking, freezing and fraud alerts have been a huge money maker for credit bureaus as consumers scrambled to find ways to protect their credit.  Depending on the bureau definition of “lock” vs. “freeze” they may [...]

2018-09-25T09:44:58-05:00September 24th, 2018|

USDA – Credit Score for Joint Applicants – If the co-borrower has no credit score, can we use the credit score of the borrower to take advantage of better pricing?

Answer: Even though USDA does not set lender pricing or lock policy, I can tell you from experience that I’ve never been able to use the higher of the two scores to get a better lock price.  So, in your case, the zero score would be the score used, which is unfortunate because that pricing [...]

2018-09-25T09:32:34-05:00September 21st, 2018|

VA – Judgment Rules for Payoff – Does VA require that a non-federal judgment be satisfied prior to closing? NEW CHART-Tax Liens and Judgments-All Agencies

Answer: VA hides guidance on judgments in their Adverse Data section under ‘Disputed Accounts’.  And I say ‘hide’ because while the highlighted guideline below would be applicable to ‘Disputed Accounts’, it would also be applicable to any judgment, disputed or not.  Judgments threaten the first-lien position of the mortgage, so underwriters have to document appropriate [...]

2018-09-25T09:32:45-05:00September 21st, 2018|

FHA – Employer Assistance Program Requirements – Does FHA allow funds to be used from Employer Assistance Programs [EAD]?

Answer: Yes, please see the below guidelines for use and documentation required. Reference: 4000.1 II. A. 4. d.  iii (M) Employer Assistance (TOTAL) (1) Definition: Employer Assistance refers to benefits provided by an employer to relocate the Borrower or assist in the Borrower’s housing purchase, including closing costs, MIP, or any portion of the MRI. Employer Assistance [...]

2018-09-25T09:32:54-05:00September 21st, 2018|