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Fannie Mae and Freddie Mac came to a conclusion when CALCULATING SE:F EMPLOYED INCOME WHEN NO DISTRIBUTIONS They only want to allow borrowers to use income that they actually received from their business versus what they claimed on their tax return. In order to do this they went to a rule that you can use…

This is a topic that each underwriter and lender likely may have varying opinions on but here is what Fannie Mae and Freddie Mac say about it. What happens when you have a purchase agreement on a home, then the home is inspected and completed and then you have an amendment AFTER the inspection date…

In reality Fannie Mae and Freddie Mac have not changed their credit score requirements as most people do not know the rules around credit scores with conventional loans which has changed over the past year. If you were to ask a majority of loan officers what is the minimum credit score for conventional loans the answer…

I continue to see more folks keeping their current home and purchasing a new home with the intention of selling their current home within a few months. Understanding the recasting process and eligibility is a great way to do just this. What is a mortgage recast? A mortgage recast, also known as loan recasting or…

Find out whether the central bank chose to cut rates The Federal Reserve has held interest rates steady once more following its latest meeting, continuing with a patient approach amid growing speculation that rate cuts are on the way. The central bank said on Wednesday afternoon that it was keeping its funds rate at its…

When Fannie Mae and Freddie Mac added the guideline about variable income they took the normal over time, bonus and commission pay types and added variable hourly pay and how long you must receive before the income is considered stable. Variable hourly pay is any pay that is either not salary or a fixed amount…

No Credit Score? We now have the ability to close Fannie Mae and Freddie Mac  (Conventional Loans) with out all borrowers having a credit score. This is part of our objective to move to no overlays at all. We have very few but this was one of them. But this comes with some rules to…

President breaks tradition, forecasts Fed action amid voter concerns over living expenses. President Joe Biden hinted that the Federal Reserve might soon lower interest rates as his administration ramps up efforts to tackle housing affordability ahead of the upcoming election battle against Donald Trump. “I can’t guarantee it. But I bet — you betcha —…

“Manual underwriting” refers to the process of assessing a borrower’s creditworthiness and making lending decisions based on a thorough review of their financial history, income, assets, and other relevant factors, without relying solely on automated algorithms or credit scoring models. Debt ratios, also known as debt-to-income ratios (DTI), are financial metrics used by lenders to…