Ask the Mortgage Underwriting Help Desk

I live in Texas and would like to know how much of a loan you can get approved for with a 590 score?

I’m currently in chapter 13 bankruptcy but made 1 yr and 4 mos of on time payment. Could I qualify for an FHA loan

My husband has outstanding collection accounts. Over 95 percent outstanding collection accounts on his credit report are medical collections. We have spoken to several mortgage companies and they said the medical collections need to be paid off because they treat medical collections the same as non-medical collections. These medical collections is what is keeping his score low and therefore they turn us away and reccomend debt consolidation companies to us. I have read FHA loans treat medical collections differently and so far I find it untrue. What is true in this case? I am beyond frustrated by this. It is cheaper to have a mortgage than rent in my area and it’s time for us to buy but we have this barrier.

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

My application is currently in underwriting. I am concerned that because my student loans are so high that my DTI may not pass. I have found a home that is scheduled to close on 11/19/2024. Honestly I did not see you site until after applying thru my current lender. Would you be able to take over the case and will I still be able to close on November 19th, 2024 or earlier? I am in Illinois and also seeking downpayment assistance if possible. The Home Inspection and Appraisal have all been completed. My student loans total 186k and I am currently in deferment, but the lender is saying that the payments are coming up to 0.50% of the outstanding student loan balance per month…but I am paying $0.00. My credit score middle is 643. Also I am currently employed but will start a new job in a week making more money. Can you help? What steps will I need to take.Renting a home for two years owner decided to sale to me via notice to vacate. I have bad credit, owe taxes and zero for a down payment. What are my options in Michigan

My landlord asked me to lie, say he is living in a four unit multi-family home I am renting from him. However, the landlord does not live on the four-unit multi family home I am living but owns the property. My landlord does have an extra mail slot in here and gets his mail here addressed from USD. Do you think that I should report him or just leave well enough alone. My landlord even told me if anyone comes to the building inquiring about him living here to tell them that he lives here. I do not feel comfortable lying and covering for him. He seems like a nice guy but he seems shady from what I think is that he is committing occupancy fraud?

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.

wanted to inquire about an issue I’m experiencing with my DU approval. Guy changed jobs after 4 plus years. In May and July changed again. Back at original job. had initially received DU approval, but after adding a modular home to the equation, there seems to be a problem. He does not have a lot of credit, so I assume needed to add tradelines.

The DU findings state:

• “This case is ineligible because the loan amount of $168,875 exceeds the FHA maximum loan calculation of $160,190.” *

Could you please clarify what steps I can take to address this issue or how we can adjust the loan amount or any other factors that may be affecting my eligibility? I appreciate your assistance in resolving this matter.

Thank you for your time and help.

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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.

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?

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?

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

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?

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?

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 $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?

How Do Lenders View a 30-Day Rolling Day Late Payment on Credit Report? Do they count is as a one time late payment or a late payment every month? Can I get a mortgage with a 30-day late payment? How bad is a 30-day late payment? What is a rolling 30-day late? How do you explain late payments to a lender? How long does it take to recover from a 30 day late mortgage payment? How bad does one 30 day late payment affect credit score? How long does it take to bounce back from a 30 day late payment? How to get a 30 day late payment removed? How long does it take to repair credit after late payments? How long will one 30-day late payment affect credit score? How many points does a 30-day late take off? How long does it take your credit score to recover from a late mortgage payment?

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?

HOW TO WRITE A SAMPLE LETTER OF EXPLANATION FOR MORTGAGE UNDERWRITERS? WHAT ARE THE STEP BY STEP INSTRUCTIONS ON HOW TO WRITE A LETTER TO MORTGAGE UNDERWRITERS?

How Mortgage Underwriters Calculate Borrowers Debt To Income Ratios?

How do you deal with a pissed off homebuyer? Is there a way to deal with a disgruntled borrower? How To Deal With Potential Mortgage Borrower Complaints Case Scenario?

HOW DO LENDERS VIEW MEDICAL COLLECTIONS?

Can an unsecured signature loan acquired 30 days before applying for home loan hurt my chances?

Can an unpaid medical bill that just went in to collections cause you to be declined for your FHA mortgage?

Can we apply together for fha loan ? His credit is not too good, although we just paid off his car loan and hoping that will boost his credit any day now. I’ve been in ssi for ten years.

WHAT IF YOUR CREDIT REPORT CHANGES DURING THE MORTGAGE APPROVAL PROCESS? WHAT HAPPENS IF YOUR CREDIT SCORES GOES DOWN OR UP DURING THE MORTGAGE PROCESS? AM I STILL QUALIFIED FOR A MORTGAGE IF MY CREDIT GOES DOWN DURING THE MORTGAGE PROCESS?

What If My Credit Scores Dropped During Mortgage Process?

What does a prospective employer look in your credit. How do employers analyze credit scores and your overhall credit in the hiring and promotion process. What does a high credit score and good credit determine of a prospective employee. Will bad credit and low credit score jeapordize a job candidate from getting hired? What type of job positions will be scrutinize with their prospective employer running credit and what determines the job prospect whether or not they get the job.