Tag: Q&A Issue

Did you know that a seller will sometimes contribute closing costs to a person buying their home in order to help make purchasing that home easier? Don’t fall for the myth that it takes a lot of money to buy your next home.  Let’s discuss your situation and I’ll help you make a plan!

Related Article Title: Excess Seller Contributions Applied to Paying Off Debt Question: If I have excessive seller contributions, can they be used toward borrower debt being paid off at closing? Answer: Unfortunately, not. Only VA allows a seller to pay off a borrower’s debts. Reference: 4000.1 II.A.4.d.iii.(H) and II.A.5.c.iii.(H)  Inducements to Purchase are treated the […]

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USDA Condominium Approvals

Question: How does USDA handle approving condominiums for financing? Answer: USDA simply states that the condominium project must be in compliance with HUD/FHA, VA, Fannie Mae, or Freddie Mac regulations. They leave it up to the lender to make that determination and provide that certification. Reference: USDA Condo Guidelines – HB-1-3555 Chapter 5 Supporting Resource: […]

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FHA New Construction 1004D and Increased Property Value

Question: When a new construction appraisal is completed subject to “the completion of construction,” is it acceptable for an appraiser to revise/increase) the value on the 1004D due to updated sales data? If so, would they have to update the 1004, or would we just use the value and the date of the 1004D? Answer: The […]

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Excess Seller Contributions Applied to Paying Off Debt

Question: If I have excessive seller contributions, can they be used toward borrower debt being paid off at closing? Answer: Unfortunately, not. Only VA allows a seller to pay off a borrower’s debts. Reference: 4000.1 II.A.4.d.iii.(H) and II.A.5.c.iii.(H)  Inducements to Purchase are treated the same way for both TOTAL and Manual underwriting.  Inducements to Purchase […]

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Adding Back Car Expenses for Car Service Drivers

Question: Will Fannie Mae allow car expenses [located on Line 9 of the Schedule C] to be added back to income for a sole proprietor? Answer: Unfortunately, you cannot.  You can also use form 1084 which specifically identifies how to calculate income for a Schedule C business. We have posted this link in the supporting […]

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