Asset Depletion, also known as Asset Utilization or Asset Amortization is the creation of an income stream from specific asset types to use as qualifying income. It is designed for borrowers with substantial and seasoned liquid funds. This income source does not meet Appendix Q standards and therefore, must be categorized Continue Reading
The Rub on Retirement Income
The Fannie Mae guidelines for retirement distributions are relatively short and straightforward. So why is there so much disagreement on calculating qualifying income? The main reason is that most borrowers have not set up a formal plan to receive regular distributions. Or, they are trying to change (increase or decrease) Continue Reading
VRB… YES or NO?
More and more borrowers are using VRBO, Airbnb, and other similar short-term rental companies to maximize their income on investment properties. The requirements for using this source of income to qualify will depend on whether the loan is Agency or Non-Agency and various other factors. For example, Fannie Mae will Continue Reading
Fannie Mae increases eligible Condo Projects
In June of 2018, Fannie Mae made some changes to their condo guidelines that will increase the number of eligible projects. Noteworthy changes included the following: Investment properties are now eligible for a “Limited Review” with a 75% LTV/CLTV. Two-to-Four Unit condos no longer require a project review, with the Continue Reading