Tag: Q&A Issue

Child Support as Reduction of Income vs. Liability

Question: Will VA allow child support to be deducted from the income, or must it always be treated as a liability? Answer: Spousal support may be treated as a reduction in income on VA Form 26-6393, Loan Analysis.Child support payment is treated as a liability on VA Form 26-6393, Loan Analysis. Reference: VA Lenders Handbook, […]

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Documenting Income from Sole Proprietor to LLC

Question: My client was a sole proprietor for the last 5 years.  In January of 2020 he formed an LLC.  How do I document his income? Answer: At a minimum, he would at least need one-year returns showing the transition. So, you would need at least the 2020 returns for the new ownership as an […]

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Verifying HUD Tag Information

Question: How does the lender verify the HUD tag information on a manufactured home? Answer: FHA requires that either the HUD tag information be reported on the appraisal by the FHA appraiser or the lender must obtain it from the Institute for Building Technology and Safety (IBTS) at https://lvr2.ibts.org/#/LandingPage  Reference:4000.1 II.A.1.b.iv(B)(5)(c)(i) and II.D.5.f. The HUD Certification […]

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Waiting Period for a Cash/Out After a Rate/Term

Question: My client did a cash-out refinance to pay off debt. Rates have gone down further, so now they are considering a rate/term refinance.  Is there a required waiting period? MC Refinance Chart – All Agencies Answer: There is no established waiting period, other than you or your lender may have to pay a premium […]

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Resolving a CAIVRS Alert on Student Loan Debt

Question: Our client’s CAIVRS report shows a defaulted student loan.  What is the solution to bring this loan out of default in order to qualify for an FHA loan? NEW MC Chart – What You Need to Know about CAIVRS Alerts Answer: A delinquent federal student loan, whether or not it is showing up on […]

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