Q&A – September 25, 2019

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 [...]

2019-09-25T09:15:43-05:00September 25th, 2019|

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 [...]

2019-09-24T10:10:54-05:00September 25th, 2019|

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 [...]

2019-09-24T10:16:28-05:00September 25th, 2019|

Non-Occupant Co-Borrower – HomeReady® or HomePossible®

Question: Will HomeReady® or HomePossible® allow a non-occupant co-borrower? MC – Non-Occupant Co-Borrower Chart – All Agencies & Non-Occupant Co-Borrower Lunch & Learn Answer: Both products allow for non-occupant co-borrowers. Please review these two fact sheets that we have included in our supporting resources below. There are separate ones for each program. Mortgage Currentcy also [...]

2019-09-24T11:37:04-05:00September 25th, 2019|