Income
These must be dated no earlier than 30 days prior to the initial loan application date and it must include all year-to-date earnings.
What are paystubs?
These limits are subject to change annually and vary, depending upon the number of units in the property and the property’s location.
What are Loan Limits?
This is the minimum credit score for fixed-rate purchase transactions.
What is 620?
These must cover the most recent full two-month period of account activity.
What are Bank Statements?
Other Sources of Income.
Alimony, Child Support, Disability, Housing Allowance, Dividends, Retirement, Royalties, Social Security, Tips, Trust, Unemployment, VA Benefits, etc.
Borrowers relying on these types of income for qualifying purposes must have a history of no less than 12 months to be considered stable.
What are overtime or bonuses?
This is a property that the borrower occupies as his or her primary residence.
What is a Principal Residence?
These types of significant events include bankruptcies, foreclosures, deeds-in-lieu of foreclosure, preforeclosure sales, short sales, and charge-offs of mortgage accounts.
What is Derogatory Credit?
These are measured by the number of months of the qualifying payment amount for the subject mortgage (based on PITIA) that a borrower could pay using his or her financial assets.
What are Reserves?
Type of DU Findings.
Approve/Eligible, Approve/Ineligible, Refer with Caution, Out of Scope.
Any individual who has a 25% or greater ownership interest in a business is considered to be this.
What is Self-Employed?
This component of the DTI Ratio consists of all total monthly obligations, including the qualifying payment for the subject mortgage.
What is the Back-End DTI?
When the credit report indicates that recent inquiries took place, this entity must confirm that the borrower has not obtained any additional credit that is not reflected in the credit report or the mortgage application.
Who are the Lender?
These funds may fund all or part of the down payment, closing costs, or financial reserves subject to the minimum borrower contribution requirements.
What are Gift Funds?
Significant Derogatory Event.
Bankruptcy, Foreclosure, Deed-in-Lieu of Foreclosure, Preforeclosure Sale, Charge-Off of Mortgage Account.
This is a form that can be utilized by authorized IRS Income Verification Express Service (IVES) participants to order tax transcripts electronically with the consent of the taxpayer.
What is the Form 4506-C?
DU uses information in the loan application to determine the sales price and appraised value it uses to calculate this ratio.
What is the Loan-to-Value (LTV) ratio?
Credit histories that include recent late payments represent a higher credit risk than those with late payments that occurred more than this many months ago.
What is 24 months?
The deposit on the sales contract for the purchase of the security property is an acceptable source of funds for both the down payment and the closing costs is also known as this.
What is Earnest Money?
Ineligible Property Type.
Vacant Land, Land-Locked, Agricultural, Hotels, Houseboats, Timeshares, Boarding Houses, Bed & Breakfasts, etc
This requirement is intended to help lenders mitigate risk by confirming, as late in the process as possible, that the borrower remains employed as originally disclosed on the loan application.
What is the Verbal Verification of Employment (VOE)?
This type of transaction is one in which the proceeds are used to finance the acquisition of a property or to finance the acquisition and rehabilitation of a property.
What is a Purchase Money transaction?
These types of circumstances are nonrecurring events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.
What are Extenuating Circumstances?
Large deposits are defined as a single deposit that exceeds this percentage of the total monthly qualifying income for the loan.
What is 50%?
Risk Factor Evaluated by DU.
Credit History, Delinquent Accounts, Public Records, Inquiries, Liquid Reserves, LTV, DTI Ratio, Variable Income, etc.