Issue: Q&A – September 25, 2019

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 […]

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USDA Mileage Income and Income Limit Restrictions

Question: Does USDA use mileage income when calculating the income limit? Answer: For eligibility calculation (annual income) you do have to count mileage. Following is the section of Chapter 9 where you can find this information. Reference: Chapter 9 & Attachment 9A – Income Analysis – Page 16 Supporting Resources: Chapter 9 & Attachment 9A […]

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Can You Roll Closing Costs into an FHA Streamline?

Question: How do you roll closing costs into an FHA streamline?  MC-  Refinance Loans Chart – All Agencies Answer: There are no Streamline Refinance options that allow for the closing costs to be rolled into the loan, unless you accomplish it through premium pricing and still meet the net tangible benefit requirements.  You would have […]

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VA and Charge-Off Accounts

Question: The credit report shows a charge-off, but we have an approve/eligible through DU. What do we need to do with the charge-off? Answer: A charge off is not considered an active debt, even though that previous data is still showing in the account detail on the credit report. The creditor is now reporting the […]

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Acceptable Land-to-Dwelling Ratio – Fannie Mae

Question:  What is the acceptable land-to-dwelling ratio for homes on large acreage properties? Answer: Neither agency enforces nor even implies that there is a specific land-to-dwelling ratio, but they do talk about how the neighborhood is ‘built-up’, which really means the appraiser should be looking at the percentage of available land in the neighborhood, not […]

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