May 27, 2019 – The Art of Underwriting

Challenging Residential Lending To Rethink Risk

VRB… YES or NO?

Posted on May 27, 2019June 6, 2019 by admin

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 only requires you to document sufficient funds for closing and reserves. You do not have to paper trail the funds into escrow to ensure they came from the verified accounts (B3-4.2-01: Verification of Deposits and Assets 04/25/2017). Non-Agency investors may not explicitly address this topic or will defer to Fannie Mae. Therefore, if guidelines do not specify otherwise, you should be able to apply this policy to jumbo loans.

Fannie Mae recently provided clarification on their policy for eligible borrowers to address the DACA (Deferred Action for Childhood Arrivals) program. If a borrower has an unexpired DACA status and meets all other requirements, they are eligible for financing. Click Here for the complete update on Non-U.S. Citizens.