Issue: Q&A – September 25, 2020

Maximum Commuting Distance for an FHA Primary Residence and Borrower Job Location

Question: Does FHA have a maximum commuting distance between a borrower’s primary residence and job location? Answer: FHA has no set maximum number of miles regarding location of employment to their residence. That said, FHA does tend to use a “100 mile” rule when it comes to defining a move to be considered ‘out of […]

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What Programs Allow DACA Status Borrowers?

Question: What is the position of the agencies [or industry standards] related to DACA [Deferred Action for Childhood Arrivals] recipients? Answer: Fannie Mae, Freddie Mac, and USDA are pretty clear about accepting DACA recipients. They all are fine with that status. FHA is the one that is unclear, which means that some lenders will allow […]

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Process for Veteran’s Request for VA Prior Approval on Denied Loan

Question: Will VA still permit the practice of sending a loan to VA for prior approval when the loan has been denied by the lender, but the Veteran and originator believe the loan should be approved? Answer: Per this excerpt from the VA Lenders Handbook below, VA does not allow submissions for approval as a […]

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How Many “Multiple Lates” Disqualifies a Borrower?

Question: My client has multiple late payments on their credit card, including 4 that are 30-60-days late, 1 that is 60-90 days late and 2 that are 90+ days late.  Will this disqualify them from a home loan regardless of credit score? Answer: It all depends on the type of credit that has the delinquencies […]

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Land Contract Deed Rules – Executed or Recorded?

Question: The Land Contract rules for Fannie Mae state that in order to refinance the property, the contract for Deed must have been executed at least 12 months prior to application date.  Is this executed date or recorded date? MC Land Contracts Chart – Fannie Mae & Freddie Mac Answer: I am going to suggest […]

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