Issue: Q&A – September 25, 2019

Waiting Period to Refinance a Property when Adding Parties to a title – Fannie Mae

Question: What is the waiting period on a refinance if the father is solely on the loan & title and the daughter wants to be added to the title in order to refinance the home into her name? They are not seeking cash-out, just a rate and term refinance. Answer: There is no waiting period […]

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

FHA Requirements for Demonstrating Union Income History

Question: My borrower is a union apprentice and has been employed for over a year. He does not work for the union, but they place him at companies and the companies pay him. Prior to working with the union, he was in school and held random part-time jobs.  Does he need 2 years of union […]

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

FHA Determination of Property Value when owned for less than 12 months.

Question: Why is underwriting using the purchase price of a property vs. the full appraised value for a home that was purchased less than 12 months ago? Answer: FHA bases the LTV calculation on the Adjusted Value of the property.  See the guidelines below for the full details regarding the definition of adjusted value for […]

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

New Construction Cash-Out Refinance Rules

Question: My client paid cash for a parcel of land that he is now building a home on using construction financing from his bank. He wants to pay off the construction loan and lower his rate to a longer-term mortgage loan. Is this considered a cash-out or a rate/term refinance? Answer: This is a conversion […]

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

Can Stipend Income be used to purchase a home?

Question: My client has a substantial stipend income that they have received for 12 months and are guaranteed for another 12 months. Can I use this income to qualify the borrower? Answer: Unfortunately, the stipend is not an eligible source of income and would have to be income that would continue for at least three […]

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