Important Changes to Home Affordable Refinance Program (HARP)

Today the federal government  announced new rules that may allow homeowners who are struggling borrowers to refinance their mortgages at today’s ultra-low rates by  reducing monthly payments for some homeowners. The goal is that the monthly savings could provide a modest boost to the economy. It is important to note this help is NOT available…

Underwriting Tip – VA Loans Unmarried Applicants

Question: My partner and I are not married and only one of us is an eligible veteran while the other is not.  Can both our income be considered for the loan application? Answer: YES, as long as one of you have a VA entitlement and both of you meet your lenders credit criteria, your marital…

Underwriting Tip – Re-Verification of Employment & Income

All lenders will must must verbally verify employment within five (5) business days (salaried)/fifteen (15) business days (self-employed), prior to closing (Note date), as Required by Fannie Mae and FHA Guidelines. If a disaster incident occurs after the Verbal Verification of Employment, the branch must obtain an additional Verbal Verification of Employment to ensure the…

Underwriting Tip – Bankruptcy Waiting Periods – VA

Veterans Loans The fact that a bankruptcy exists in an applicant’s (or spouse’s) credit history does not in itself disqualify the loan.  Develop complete information on the facts and circumstances of the bankruptcy.  Consider the reasons for the bankruptcy and the type of bankruptcy filing. Bankruptcy Filed Under the Straight Liquidation and Discharge Provisions of the Bankruptcy Law…

Underwriting Tip – Bankruptcy Waiting Periods – FHA

A Chapter 13 bankruptcy does not disqualify a borrower from obtaining an FHA-insured mortgage, provided that the lender documents that one year of the pay-out period under the bankruptcy has elapsed the borrower’s payment performance has been satisfactory and all required payments have been made on time, and the borrower has received written permission from bankruptcy…

Underwriting Tip – FHA Buyer Financed Closing Costs

FHA Buyer Financed Closing Costs Financing of Transaction Costs for Real Estate Owned Properties (REO) Purchased under Federal Housing Administrations  $100 Down Sales Incentive Click for mortgagee letter/details  Related articles Underwriting Tip – FHA Gift Funds (theraleighmortgageguy.com) Buyers Receive up to 3.5% Toward Closing Costs from Fannie Mae! (theraleighmortgageguy.com) HELP FOR HOMEOWNERS…

Underwriting Tip – Recent Storms and Floods

Due to the recent storms the Underwriters will be checking the disaster lists and requiring additional appraiser visual inspection and sign off if a subject property is in an affected area. Realtors and Buyers – make sure to check your properties that may be in affected areas BEFORE closing because the underwriters will.  The site…

Underwriting Tip – Borrowers Employed by Family Business

FHA – In addition to normal employment verification, a borrower employed by a family owned business is required to provide evidence that he/she is not an owner of the business, documentation may include:          1. Copies of signed personal tax returns or          2. A signed copy of the corporate tax…

FAQ – What is the FHA Gift Funds Section 1010 Verbiage

FHA Underwriting Tip; FHA allows a borrower to meet the minimum statutory investment by using gift funds from either a close family member, government agency or approved non profit. FHA requires that all gift letters include the section 1010 verbiage below – Click Here  for sample letter with all of the HUD requirements.