Tag: Q&A

FHA Distinction Between Part-Time & Secondary Employment

Question: My co-borrower was a stay-at-home Mom for a few years and recently went back to work as a part-time employee.  How many months is required on this job before we can use the income? Mortgage Income Analyzer™ – Part -Time Employment Answer: While it’s common to use the term ‘part-time’ to describe any employment […]

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Can line 13 on Schedule E be added back in to calculate rental income?

Question: Can line 13 on Schedule E be added back in to calculate rental income? If so, since it is not listed as mortgage interest on line 12, do you need a 1098 to prove it was mortgage interest? Answer: Rental income calculations are different depending on whether the income is from the subject property or […]

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Fannie Mae – Auto Allowance & Mileage as Income

Question: My client has received an auto allowance and mileage every month for 3 years. Can I use this as income, or use it to offset his auto debt? Answer: You would not be able to use the mileage rate.  Fannie Mae stripped that out of their guidelines in 2018 due to changes in the […]

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Fannie Mae & Freddie Mac-Co-Signor on Deed: Does Fannie Mae or Freddie Mac require a cosigner to be on the deed?

Answer: Fannie Mae guidance is clear that they would sign the deed, but Freddie guidance is less informative.  If you are trying to avoid the co-signer signing the deed, Freddie may be an option, subject to lender interpretation, but as mentioned, Fannie would require them to be on the deed. Reference:  Fannie Mae B2-2-04, Guarantors, […]

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FHA – Chapter 13 Bankruptcy: Is it possible to do an FHA loan for someone who is still paying on a Chapter 13?

Answer: FHA will allow a borrower who is still repaying a Chapter 13 to obtain a mortgage after they’ve completed at least 12 months of on-time payments and have the court’s permission to obtain the new mortgage. They do also require that the loan be manually underwritten, which means that the transaction will be subject […]

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