VA – New Refinance Rules for Buyout During Divorce

Question: Do the new VA rules for Net Tangible Benefits on a cash-out for a primary residence still apply in a divorce situation, where the veteran is buying out the ex-wife? Answer: Yes. The Net Tangible Benefit rule applies even in an equity buyout situation. VA does not offer any exceptions to the new rules. [...]

2019-08-22T09:13:10-05:00August 26th, 2019|

Fannie Mae – Divorced Obligation on Previous Property: Do I need to count any financial obligation when the applicant is on the deed of a marital property, yet the financial responsibility was assigned to the ex-spouse by the divorce decree? [Includes Divorced Borrower Chart]

Answer: My educated opinion:  The divorce decree is the governing document here, if it indicates that she is not responsible for taxes, insurance and so on for the prior marital residence. Therefore, you should be able to exclude those obligations without any further documentation.  If your lender or underwriter is requiring proof or documentation for [...]

2018-11-25T20:18:01-05:00November 25th, 2018|

Fannie, FHA & USDA– Divorced – Contingent Liabilities: Is there a waiting period for not counting a liability that was assigned to an ex-spouse by court order? [MC Divorced Borrower Chart]

Answer – Fannie Mae Says: Neither Fannie or Freddie require a minimum period of time as long as the debt has been assigned and the lender documents via appropriate pages from divorce decree. Reference:  Fannie Mae B3-6-05, Monthly Debt Obligations (01/30/2018) Court-Ordered Assignment of Debt When a borrower has outstanding debt that was assigned to [...]

2018-10-25T08:25:57-05:00October 25th, 2018|