Underwriting Help Desk

Lately, we have seen many late payments in the past 12 months from mortgage loan applicants. I just got news from Alex Carlucci that he got clear to close on a manual underwritten FHA loan for a borrower with many late payments due to extenuating circumstances. Due to extenuating circumstances, Alex Carlucci got approved with tons of late payments in the past 12 months via manual underwriting.

If someone has been on a payment arrangement with the IRS . I know you have to show payment history. Has a history of payments spanning multiple years each month 297.00. In September 2024, payment amount was adjusted, with the new payments set to begin in November. Per letter from IRS. However, the payments didn’t actually start until Feb 2025.

Will he still be required to show three payments of the new amount before proceeding?

Thanks in advance for any insights!

Is it easy to qualify for lender credit and/or seller concession to pay for closing costs?

Is Home Inspection Recommended?

Impact Of Credit Card Balance On Credit Scores

What if I have a non-occupant co-Borrower with poor credit, What To Do???

In Louisiana, can I do a cash-out refinance to pay off Chapter 13 Bankruptcy? Can I combine I099 and W2? What does the underwriter require? One or two years of 1099 and W2? I have one year of W2 and two years of 1099 income. Would I qualify?

The price of houses in Miami has been increasing rapidly; some are priced higher than before the housing market crash a few years back. Should a buyer wait slightly longer to see where this trend is heading?

Does HUD, VA, USDA, FANNIE MAE, and Freddie Mac require verification of rent? How about non-QM lenders? Do they require verification of rent or verification of mortgage?

When we are reviewing 1003, what are two things we have to look for immediately from a compliance standpoint?

Why do lenders want to see inquiries from only the past 90 days of the credit report ? Why do mortgage companies treat medical collections the same as non medical collections

Why do banks and mortgage companies view debt settlement so badly?

What are reserves and how does reserves work? When do mortgage lenders ask for reserves?

What is a credit supplement and how does it work? Why do we need a credit supplement?

If I have older outstanding collection accounts and charge-off accounts, should I contact the collection agency in the hope that they did not place a lien on me or I have a judgment? And if I do have a lien, can I ask the collection agency or creditor that the lien has not been renewed?

Should I enter into a monthly payment agreement with a creditor $100 a month on a 8k debt so my DTI stays low?

Can you explain the concept of “debt layering” and its impact on mortgage underwriting?

My question is with a 630 average FICO score (2,4,5) and my new taxes showing increasing income in the new year (2024) what other concerns should I have or try to prepare for when I apply for an FHA. DTI is low as well

Good morning, folks. Does anyone know about HUD, FANNIE MAE, and Freddie Mac suspending income-based repayment on FHA and Conventional loans? I heard you can no longer use IBR payments because IBR is getting sued. From my understanding, our borrowers can only use 0.50% of the outstanding student loan payment for debt-to-income ratio calculations. Appreciate any feedback. Seems most wholesale account executives and underwriters do not know about this either. Thank you in advance.

How does a $300,000 student loan balance affect my debt-to-income ratio on either FHA or Conventional loan? My student loans are in deferrment. Can I turn my deferred student loan to an income-based repayment? How does IBR work on FHA and conventional loans. I heard that IBR is no longer available due to IBR getting sued? Is there any merit to IBR no longer being available for the time being? That does not make sense. Can you provide me with detailed information?

My vantage scores are 699 and 703 but FICO is 645. I lost $1,000 after my landlord refused a reference last year. I also changed jobs for FT in a different industry. I had 2 years at last job and will be one year July for this position. Is there any hope? This is my last opportunity as I am 58. Looking at $40000-$60000 depending on my final pick.

We don’t *have* to do FHA. Just hearing that they are the most forgiving re DTI. We can come up with a 20% DP if that would make a conventional work. Not sure what direction to go.

We are going through the mortgage process, we are waiting for the appraisal at the moment. However we just received notification that an unpaid medical bill for $149 just hit the coborrowers credit report. Could this derail our loan process and cause our loan to be declined?

If a homeowner has two mortgage loans on their home, for a short sale to occur, do both lender need to approve the price?

If I get a co-borrow to sign on a mortgage loan but they sign a non-owner occupied will they still have access and rights to buy the home. If they chose to move in if I’m the primary resident? Can you co-sign a mortgage and not be on the deed? Does a co-borrower have rights to the property? Does a cosigner on a mortgage have ownership? Does a cosigner on a mortgage have to live in the house?

• This discussion was modified 7 months, 2 weeks ago by  Sapna Sharma.

If I am a co-signer on an auto loan, is the debt calculated on my DTI? How does DTI work with Cosigner? Does cosigning a loan count as debt? Does co-signing a car affect debt-to-income ratio? Does cosigning an auto loan affect your credit?

Is The Home Purchase Agreement Void if FHA pre-approval on current employment & buyer won’t have 6 months of employment until 50 days after the pre-approval letter? What is the FHA 6 month employment rule? Does FHA allow seasonal income? Do FHA loans require 2 years of employment? What is the final verification of employment for FHA loans? Can you use an offer letter for FHA loan? What is the FHA 6 month employment rule? What are the requirements for a FHA employment contract? What are the rules for FHA verification of employment?

Is $735.00 monthly in ssi income enough to receive any type of home loan or home ownership program? Does SSI count as income for a mortgage loan? Can I use SSI money to buy a house? Can I get a loan if my only income is Social Security? Can people on SSI take out a loan? How is Social Security calculated for a mortgage? Can I get a home loan if my only income is Social Security? Does Social Security count as income when applying for a loan? How do they calculate Social Security income?

Is it possible to be pre-approved for USDA and a Conventional product? We really would like to stay in the town we live in, but it is excluded from USDA. We like the USDA mortgage for all the reasons that make it popular. So can a person get two types, in case homes come available in different areas or would it be best to just get conventional pre-approved? Can you have a USDA and Conventional loan at the same time? Does USDA allow non-occupant co-borrowers? What would cause a USDA loan to be denied? How strict are USDA appraisals? Can you avoid PMI with USDA loan? Can you have an FHA and USDA loan at the same time? What is the maximum debt to income ratio for a USDA loan? What are the requirements for a USDA loan in Oregon? Can USDA loan be used on Fixer Upper? Is there an income limit for first time home buyers in Oregon? How does USDA calculate household income?

Is it legal to use a self-employed monthly paycheck as expense instead of net? Can I claim self-employment expenses without income? Is self-employed income gross or net? Can you write off payroll as a business expense? Can a self-employed person pay themselves a salary?