From Fairway Wholesale
A Division of Fairway Independent Mortgage Corporation
If the veteran states that he/she will be living in military quarters at no cost and his/her spouse will be living in the subject property, you do not have to consider separate household expenses.
VA has given guidance that Borrowers with children age 12 and under must complete and sign a "Child Care Letter". The lender must obtain the letter from the veteran documenting the childcare expense or detailing why no expense is incurred.
Fannie Mae and Freddie Mac do not require that unreimbursed employee business expenses be analyzed or deducted from the borrower’s qualifying income, or added to monthly liabilities, for a borrower who is qualified using base pay, bonus, overtime, or commission income less than 25% of the borrower’s annual employment income.
If the property was owned prior to closing by a limited liability corporation (LLC) that is majority-owned or controlled by the borrower(s), the time it was held by the LLC may be counted towards meeting the borrower’s six month ownership requirement.
If the borrowers wish to apply together, they can now be listed together on the 1003, as long as the credit report is pulled together. On the other hand, if the borrowers wish to be on separate applications, they can do so as long as the credit report is pulled separately.
Documentation Requirements – The number of years of required tax returns will be based on the number of years the business has been in existence
Home Possible income requirements are waived for properties identified by Loan Product Advisor or the Home Possible Income and Property Eligibility tool as located in federally declared disaster areas. If a mortgage meets all other requirements, it will qualify for a Home Possible mortgage.
Recently, Fairway presented a webinar to review the FHA 203(h) program. The program allows the Federal Housing Administration (FHA) to insure mortgages made by qualified lenders to victims of a major disaster who have lost their homes and are in the process of rebuilding or buying another home.
Conventional Loans for borrowers with no credit score that are run through DU and/or LPA that receive an Approve/Eligible or Accept/Eligible, and meet the requirements below are eligible to be submitted to Fairway.
Income derived from the conversion of the borrower’s liquid assets into a monthly stream from assets that are not employment-related (“Other Financial Assets”) may be used to qualify the borrower in accordance with the requirements below - Fannie Mae - Conventional/Conforming Non-Employment Related Assets as Qualifying Income.
Fairway has partnered with CIC Credit to offer its brokers and correspondent lenders the ability to order tax transcripts. Fairway covers the cost. So, get a head start on 4506T requests – order them early to prevent any possible delays!
Fairway Wholesale Lending prefers that each property be 100% complete at the time of closing; however, there are situations that warrant exceptions for escrow holdbacks, such as weather-related circumstances, lack of materials available for finishing, foreclosure sales and short-sales where the seller cannot or will not allow property repairs to be completed prior to closing, among others.
For certain loan casefiles, DU and LP may offer property inspection waivers - an option to waive the appraisal requirement. Be sure to check your findings to see if the property is eligible for a waiver.
The owner occupancy requirement for new condo projects is being revised from 70% to at least 50% of the total units in the project (or at least 50% of the sum of the subject legal phase and prior legal phases).