Fannie Multiple Parcels: Do Fannie guidelines prohibit lending on more than one parcel of land? FNMA allows multiple parcels under the following rules:
- Each parcel must be conveyed in its entirety
- Parcels must be adjoining one another
- Each parcel must be zoned residential
- Only one parcel may have a dwelling unit (limited nonresidential improvements such as a garage are acceptable)
- No excessive value given to the land
- Appraisal comps not required, but suggested
- The mortgage must be a valid first lien on each parcel
VA Cert of Elig. Status: Is there an email address at the VA to check the status of a veteran's eligibility? No email address. If you have a question on a Certificate of Eligibility (COE) that had already been requested, call the number: 1-888-244-6711. You can get to a live person who will look it up for you.
FHA Old Case Numbers: How do I get a client's current FHA case number when they can't find their closing docs? 1. Go into FHA Connection, Single Family Origination>Case Processing>Case Query You can enter the borrower’s info and pull up the case number (if it's over a year old it may be 'archived').
VA Non-Spouse on loan: A veteran has a significant other and they have a child together. Can she be on the VA loan with him? VA will allow what's called a "Joint Loan." This is where a non-veteran, non-spouse is a co-borrower. VA will allow the Veteran borrower to use only 1/2 of his/her entitlement in this situation AND the Regional Loan Center has to underwrite the file. More info can be found in VA Pamphlet 26-7 Revised, Chapter 7
USDA Length of time on job: I have a client that has worked on a farm for two years. He started another job for the last six months, but he is still working at the farm part time. Underwriter says he has to be on BOTH jobs for ONE year. Is that true? Here is what RD regulations say: Determining Repayment Income: Employed Applicant Approved lenders must determine stable and dependable monthly income from verifiable sources. Refer to sections 1980.345(b) and 1980.345(c)(2)(i). There is no minimum length of time an applicant must have held a position to consider employment income as dependable. Obtaining two years of documentation for an applicant’s employment and income history will assist lenders in their analysis regarding probable stability and continuance of the present income source. The applicant should not have any gaps in employment of more than a month within a two-year period of loan application. The lender may consider reasonable allowances under the following circumstances: (1) A recent graduate, as evidenced by college transcripts, or a recent member of the military, as evidenced by discharge papers, entering the civilian workforce. Caution must be utilized when the applicant’s employment includes a probationary period; (2) An applicant has recently re-entered the workforce after an absence to care for a family member or minor child, extended medical illness, or other circumstance reasonable to the lender; (3) An applicant will begin a new job with a firm offer letter from the employer indicating a start date within 90 days of loan closing (lenders must verify the applicant will have sufficient income, or cash reserves, to support mortgage payments and other obligations between the time of loan closing and the start of employment). This type of allowance is commonly represented by an applicant entering a teaching position with a contract from the school district; and (4) An applicant frequently changes jobs but demonstrates income continuity. Sources of income the lender cannot verify are not acceptable for the purpose of qualifying applicants for guaranteed loans. Income that is verified, but not considered stable and dependable by the lender, may be considered as a compensating factor for meeting debt ratios. It remains the lender’s responsibility to fully document their analysis and basis for stable and dependable income utilized. The lender must be able to determine the applicant’s income stability based on the available documentation.
Written and contributed by Karen Deis of Mortgagecurrentcy.com. Provided monthly by www.mortgagecurrentcy.com- interpreting the Rules and Regulation Changes for loan officers, processors, underwriters, and owners/managers. Mortgage Talking Points TM, charts and checklists included.
