Tag: Q&A Issue

Is a Borrower that Is in Forbearance Eligible for FHA Financing?

Question: Can a borrower be eligible for FHA financing if they have a COVID-19 forbearance? Answer: You can do a mortgage for a borrower in forbearance with some conditions.  Mortgage Letter 2020-16 outlines these conditions. Yet like all things new and untested, be prepared for investor overlays.  This is definitely a situation you want to […]

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VA Eligibility with IRS Tax Liens

Question: Our client has 2 federal tax liens that are not satisfied.  The IRS has changed the status to “unable to pay”.  Will this be acceptable for VA Financing? Answer: Per the VA guideline below, your borrower would not be eligible for a VA loan because the delinquency has gone all the way to the […]

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VA IRRRL Term Reduction & Fee Recoupment

Question: I have a veteran wanting to do VA IRRRL, but with 15 yr. term. His interest rate will be 1.375% lower, but his payment will go up. Do fee recoupment requirements apply? Your chart says if PI payment goes up, the veteran can incur no fees? Can you explain requirements to proceed on this […]

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Minimum Distance Requirements Between Primary Home & Second Home

Question: Is there a minimum distance required from a second home to the primary residence? MTP™ – Second Home or Investment Property? Answer: No. Lenders may impose them, but Fannie does not. Here are the requirements for a 2nd home from their selling guide.Second Home Properties Must be occupied by the borrower for some portion […]

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Is a Waiting Period Waived for Derogatory Credit for High Credit Score Buyers?

Question: I have heard that Freddie Mac no longer has a waiting / time period from bankruptcy and foreclosure as long as the declarations are marked correctly, and you have an LP approval. However, I cannot find this anywhere in writing. I have someone with a 700+ credit score with reestablished credit but just under […]

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