Kentucky Mortgage Lender

  Did you know that each agency has different requirements for using rental income from the borrower’s departing residence to qualify?  Please see the guidelines below and let us know if you have any questions.     Conventional Rental income can be considered for qualifying purposes using 75% of the current lease agreement.   Documentation requirements: Fannie Mae – Current signed lease agreement Freddie Mac - Current signed lease agreement AND  documentation evidencing deposit of first month rental payment and security deposit   FHA FHA Must be relocating 100 Miles from departure home.   Appraisal evidencing market rent and that borrower has 25% equity.  Does not need to be done by FHA appraiser. Executed Lease agreement of at least one year’s duration after loan close. Proof of receipt of security deposit or First Month’s Rent. Mortgagee must deduct the PITI from the lesser of: the monthly operating income reported on Fannie Mae Form 216/Fr...

  Kentucky FHA, VA, and Fannie Mae Conventional Mortgage rules for rental income Today's borrowers often wish to retain their existing homes when purchasing a new primary residence. Many questions arise about utilizing rental income from the previous home to qualify for the new mortgage. To clarify the guidelines, we've compiled the pertinent information below. FHA Must be relocating 100 Miles from departure home.   Appraisal evidencing market rent and that borrower has 25% equity.  Does not need to be done by FHA appraiser. Executed Lease agreement of at least one year’s duration after loan close. Proof of receipt of security deposit or First Month’s Rent. Mortgagee must deduct the PITI from the lesser of: the monthly operating income reported on Fannie Mae Form 216/Freddie Mac Form 998; or 75 percent of the lesser of: fair market rent reported by the Appraiser; or the rent reflected in the lease or other rental agreement. Conventional Executed long term Lease which...

New Kentucky FHA Mortgage rules starting June 2015 CAVIRS Old Rule – Federal debt makes borrower ineligible New Rule – VERIFIED federal debt makes the borrower ineligible Part-Time Income Old Rule – Underwriter discretion allowed when received less than 2 years New Rule – Two years uninterrupted part-time income is required. Average income over prior 2 years or use 12-month average of hours at the current pay rate if the lender documents an increase in pay rate. Rental Income on Retained Primary Residence Old Rule – Rental income may be counted when relocating outside of reasonable commute distance for job and borrower has 25% equity. New Rule – Rental income may be counted when relocating and the new residence is at least 100 miles from previous residence. If no history of rental income since the last tax filing, borrower must have 25% equity. Non-taxable income Old Rule – Gross up using tax rate evidenced on last tax return. If borrower did not file...