The technology that has been leading the industry news over the last year has been Fannie Mae’s Day One Certainty program. This program’s goal is to give lenders immediate certainty that their income, assets, and value will be approved. This improvement allows sellers relief that loans sold to Fannie Mae will not return as a buy-backs costing thousands!
Coming in February 2018 underwriters will need to consider more information before using rental income to qualify a borrower. Agencies, banks, credit unions, and broker shops will adjust guidelines based on risk in their loan portfolio. So far I have not read any articles or reports that rentals have become an issue for FHLMC.
One of the basic requirements from both FNMA and FHLMC is for the underwriter to determine the stability of the income used to qualify. This is where the concept of continuance comes in.
Many people have heard the rumors and seen the blogs and articles about the DTI going up to 50% announced in the new DU 10.1
When working with borrower’s just into retirement years they sometimes come with a unique challenge of FANTASIC credit, TONS of assets, but low-income due to
Everyone wants a good deal when buying their next home. Some of the best deals are found on homes that have been foreclosed or purchased at
Mortgage, notes, and bonds due in under 1 year is a line item well known, but little discussed in the guidelines. This single item on
One of the more unusual income types that you will run across is a statutory employee. You can spot them right away when you are
We all can relate to those hard to find answers on questions about non occupant borrowers. This has a lot to do with how infrequent an
Gift funds are still a top question I receive in underwriting, even though the rules have not really changed since I started in the mortgage
The answer to this question has changed for the better as of April 25, 2017. Fannie Mae continues to improve and streamline the loan approval
When you have a borrower that has taken rental properties a little more serious the average rental investor and has multiple rental properties, how many
A common question I get in underwriting is “my borrower works overtime at his new job he started “x” number of months ago, can I
Sometimes you need that extra income to get your borrower over the DTI hump to move them from declined to qualified. One item that many
A few months ago we posted a blog focusing on the differences between the rental calculations for other properties the borrower owns when using either
