FNMA
What is the minimum credit score for FNMA loan?
620
Can you use excessive/positive net rental income on a conversion of a primary residence?
NO – can only be utilized to offset the full monthly payment of the primary.
Within how many days after the receipt of the VA appraisal report from the appraiser should the Underwriter review and issue the NOV?
5 business days
What is the minimum required investment on an FHA purchase loan?
3.5%
Are cancelled rent checks required when a VOR is completed by a private landlord?
No
What is the waiting period for a Bankruptcy (Chapter 7, 11, & 13)?
Chapter 7 and 11 is 4 years from the discharge/dismissal date. Chapter 13 is two years from the discharge date or 4 years from the dismissal date.
What does “ACE” stand for on FHLMC LPA findings?
Automated Collateral Evaluation (this is an appraisal waiver)
What documentation is needed to restore a veteran’s VA entitlement?
Executed settlement statement from the sale of the property that had VA financing.
What is the upfront mortgage insurance premium?
175 basis points or 1.75% of the base loan amount.
What is the general trade line requirement?
At least one borrower must have 3 trade lines (installment, revolving, mortgages, rental verification) one of which has been open for 12 months and the other 2 must have been rated for 12 months. Authorized user accounts may be used if borrower can document that they have been the sole payer on the account for at least 12 months prior to the loan application date.
Under what circumstance are you NOT able to use the rental income for a subject property when the occupancy type is investment?
When the borrower does not own a principle residence AND does not have a current housing expense.
What type of assets are acceptable when using Asset Depletion Income to qualify?
Retirement, Depository & Securities accounts (ie: Checking, Savings, Money Market, CD, Stocks, Bonds Mutual Funds) IF one borrower is at least 62 years old, and Assets from the sale of the borrower’s business
What zip code is used when determining the amount of BAH?
Borrower’s duty station zip code
When a borrower has no previous rental income history, what is required to use rental income on a departure residence?
An appraisal showing at least 25% equity and the market rent.
What is required when using child support, alimony, or separate maintenance income?
Need to document 12 months of receipt plus 3 year continuance with all of the following: A Copy of the divorce decree or separation agreement, Deposit slips/canceled checks/court records/tax returns, and for child support - proof of the ages of the children for which child support is received to prove a 3-year continuance.
What are the 4 common ownership or financing structures of solar panels?
Borrower owned panels, leasing agreement, separately financed, and power purchase agreements.
What is the maximum LTV for a 1 unit investment property purchase?
85%
What is the VA calculation for a student loan payment?
Balance x 5% divided by 12
If a borrower is listed on title only for a real estate owned property, what part of the housing payment must be included in the DTI?
None of the housing payment is required to be counted if the attached mortgage is in the name of another party.
What is the student loan qualifying payment when the credit report does not reflect a correct payment?
Must obtain the most recent student loan statement or If the credit report does not provide a monthly payment for the student loan or shows $0 payment, then the Lender must determine the qualifying monthly payment using one of the options below:
What is the maximum area median income for a FNMA loan with an LLPA pricing waiver?
Loans to first-time homebuyers with qualifying income ≤100% area median income (AMI) or 120% AMI in high-cost areas
Under what circumstance are the solar panels required to be included in the TLTV ratio?
If the Solar Panel is financed as a fixture to the real estate (subject property)
When using an active military borrower’s income to qualify, what date on the LES (Leave and Earning Statement) must be reviewed?
The ETS (Expiration Term of Service date) – if the date is within the 12 month period following the loan closing additional information must be provided.
When a borrower sells personal property (Car, Jewelry, etc.), What amount can be used as qualifying assets?
The lessor of the documented estimated value or actual sales price.
What is required when gift funds are being used for funds to close?
For primary residence only and the borrower must contribute a minimum of 5% into the transaction. (More than just verifying that the borrower has 5% of own funds – need to be careful when there is a large gift being sent directly to closing)