FHA guidelines state that rate term refinances are only allowed on owner occupied principal residences and HUD approved second homes. What documentation should the processor obtain to prove that....

A borrower recently received a large settlement from an accident that he was involved in. He received an initial lump sum but also will be getting monthly payments as well. How should this....

As a processor, I know that there are some items that the borrower is allowed to shop for and some that are assigned or are designated by the lender. Does the borrower have the ability to....

A brother and a sister are refinancing a property that they inherited from their grandmother. The sister wants to sell her portion of the property to her brother. Is this possible with....

When processing an FHA loan for a young first-time homebuyer without a 2-year work history, what documentation can be obtained to prove the ability to repay?

As a processor, I know that a VA Termite inspection report is normally good for 90 days only. Are there situations and/or instances where this time period may be extended?

When a veteran is buying a condominium, do the same termite inspection guidelines apply? Should the processor follow the same guidance for obtaining a termite inspection report as they would....

When processing a VA loan, it is a requirement for a termite inspection to be obtained for “very heavy” or “moderate to heavy” termite infestation areas. Can you use the existing....

On an FHA rate term refinance, guidelines state that the maximum LTV is 97.75% for an owner-occupied residence. In what instance would the MAX LTV differ?

The borrower just started a new job and his paystubs reflect his car allowance simply as “expenses”. What needs to be obtained to prove that this is the same as the “Car Allowance”....

The borrower’s credit report reflects that an American Express 30-day charge account that the borrower states he pays off monthly. How would a processor derive a payment for this type of account?

Is a borrower allowed to Payoff or Pay down a debt simply for qualifying purposes?

If an employer pays a borrower an automobile allowance on their own personal vehicle for gas, car maintenance and other auto expenditures, can this be considered a source of income?

If the borrower has someone living with them as a boarder, can this income be used to qualify?

The borrowers disclosed in the application process that they were unable to pay last year’s income taxes in full and are paying the IRS monthly to repay these taxes. Does this need to be....

The borrower was unable to supply sufficient assets to close so a co-borrower was added to the application. The co-borrower is a non-occupant and is providing the assets for the down payment....

The borrower does not have any available cash on hand for closing costs and down payment but he does carry a life insurance policy. Can he borrow against the policy or surrender it for cash value....

The borrower gets “Reward Points” for the purchases that he makes on his credit card. If these can be converted to cash, are they an acceptable source of down payment, closing costs and any....

Regarding FHA’s requirement for lead paint, if the appraiser finds peeling or cracking paint, does the entire home have to be repainted?

When the home was appraised, there were some minor repairs required to be completed thus requiring a final inspection. If the original appraiser is legitimately unable to complete....