FHA Mortgage BREAKING NEWS

Steve Kyles Legacy Mutual Mortgage

APPLICATION

DOCUMENT EXPIRATION

SIGNATURES

UP FRONT DOCUMENTS

Existing AND New Construction documents expire in 120 days at Disbursement Date (previously Loan Closing). Disbursement date is defined as the date the proceeds of the Mortgage are made available to the Borrower

All borrowers must sign BOTH the initial and final application and HUD/VA Addendum. (Exceptions for Active Duty Military and Incapacitated Borrowers

Request a copy of the survey upon receipt of the execut-ed contract and see when the title commitment or abstract will be available for inclusion in documents provid-ed to the appraiser

CREDIT

DEFERRED OBLIGATIONS (INCLUDING FORBEARANCE) MUST BE INCLUDED IN THE BORROWERS LIABILITIES

DEBTS LASTING LESS THAN 10 MONTHS

REVOLVING CHARGE ACCOUNTS

30 DAY ACCOUNTS

Verify the terms loan. For student loans if the creditor will not provide a payment or indicates the payment to be zero calculate a payment based on 2% of the outstanding balance

Must be included if the remaining cumulative payment are less than or equal to 5% of the borrowers gross monthly income (debts may not be paid down to achieve this percentage)

If not indicated on the credit report use the payment on the state-ment or 5% of the outstanding balance (no $10 minimum)

In order to not include a 5% payment in the debt ratio, evidence must be provided that the borrower had paid the debt in full every month for the previous 12 months.

VA Mortgage BREAKING NEWS

Steve Kyles Legacy Mutual Mortgage

ELIGIBILITY

VETERAN AND THEIR NON-VETERAN SPOUSE

TWO VETERANS WHO ARE MARRIED TO EACH OTHERWHERE ONLY ONE VETERAN WILL BE USING ENTITLEMENTTWO VETERANS WHO ARE MARRIED TO EACH OTHER WHERE EACH VETERAN WILL BE USING ENTITLEMENT

UN-REMARRIED SURVIVING SPOUSE OF AN ELIGIBLE VETERAN WHO DIED DUE TO SERVICE-CONNECTED INJURIES

SPOUSE OF AN ACTIVE-DUTY SERVICE PERSON WHO HAS BEEN LISTED AS MIA OR POW FOR MORE THAN 90 DAYS

THE VETERAN MUST HAVE BEEN HONORABLY DISCHARGED.

Dual Entitlement – Contract takes about 60 days. Process is longer with the VA.

ELIGIBILITY

CERTIFICATE OF ELIGIBILITYNeed to request this up front.

This affects a veteran’s funding fee and qualification for the loan. Once the veteran or lender requests the COE through the website, turn-around time is about 14 days. (If one does not already exist)

Simultaneous closings/COE restoration

Bonus Entitlement -usually requires down payment, but depends on the city and state of the purchasing home.

If Entitlement needs to be restored, COE must be updated if closings are more than 7 business days apart. It can take 14 business days to get a new COE. If the closings are less than 7 business days apart we need the final signed HUD from the sale. We can then send that over to the VA and show evidence we requested restoration.