Second Home

Fannie Mae – DU Job Aid – Debt-to-Income (DTI) Ratio – Dated June 3, 2019 and DU Job Aid Total Expense Ratio < Housing Expense Ratio Error Message – Dated June 3, 2019

Written by: Lloyd Rutherford, Staff Writer If you master DU you are one step ahead of the competition and you dramatically reduce processing time! These Job Aids should help you get one step closer to expert status. Rule Synopsis: Fannie Mae published two new job aids: DU Job Aid Debt-to-Income (DTI) Ratio, and DU Job [...]

2019-07-09T10:49:18-05:00July 10th, 2019|

Fannie Mae & Freddie Mac – Second Home Multi-Unit: What is the maximum LTV for a 2-Unit purchase of a second home for both Fannie and Freddie?

Answer: It varies. If you are using their standard products, the LTV’s are limited to 85% for Fannie Mae and Freddie.  If using Freddie Mac’s Home Possible product (where there are income limitations) then the LTV is 95% and Fannie Mae’s HomeReady product still limits you to 85%. The most flexible is Freddie Mac’s Home [...]

2019-06-19T10:30:45-05:00June 25th, 2019|

Freddie Mac Bulletin – 2019-7 – Multiple Selling Guide Updates – Dated April 3, 2019 – Effective July 3, 2019 and February 1, 2020. [NEW Chart – Fannie Mae vs. Freddie Mac Underwriting Differences]

Written By: Lloyd Rutherford, Staff Writer This update contains a lot of exciting news that is sure to expand your business or make it easier. Rule Synopsis: Freddie Mac is updating their selling guide for a variety of topics. This article will focus on the topics that benefit originators. The updates announced in this Selling [...]

2019-04-09T11:51:04-05:00April 10th, 2019|

VA – Second Home: Does VA allow for financing on a second or vacation home? [Maximum Loan Calculator – Including Partial Eligibility and Sales Price Exceeding County Limits – VA]

Answer: While VA will allow a veteran to obtain a second VA loan using their remaining entitlement, that second loan must be for a new primary residence.  They cannot use the new loan to obtain a second home or an investment property. Social Media Posts: While VA will allow a Veteran to utilize their remaining [...]

2019-03-25T08:58:45-05:00March 25th, 2019|

FHA – Second Home Debt: If a client has a second home that is less than 10 months before it is paid off, do I need to count that debt?

Answer: FHA allows the exclusion of the mortgage payment on the second home from the DTI calculation IF the cumulative payments of all such debts are less than or equal to 5 percent of the Borrower’s gross monthly income (see the full guideline below). FHA does not provide a guideline regarding the exclusion of property taxes [...]

2018-07-25T07:57:57-05:00July 24th, 2018|