Some of you have information that is dangerous.
About 96% of loans are govt backed loans. Fannie/Freddie & FHA.
BANKS ARE MORTGAGE BROKERS. Some of you just don’t get it. They don’t make up their own rules for 15/30 YR fixed loans. GSE’s make the rules, and many rules are INSANE. that’s the way it is.
I don’t do FHA loans. Here are some guidelines for Fannie/Freddie.
FNMA does NOT allow “non occupant” co borrowers
Freddie DOES. Not all lenders do both.
Even if you put 50% down.
FNMA maxes out at about 45% back end DTI
FREDDIE goes higher. 50%+
GIFT FUNDS:
IF the gift is less than 20%, the borrower must have at least 5% of their own funds seasoned/documented to guidelines.
Seasoned funds usually means providing ALL numbered pages of 2 months regular bank statements.
If there is a large deposit on either month, it will need to be paper trailed.
I have never had to provide a statement that was 3 months+ old, you can plan accordingly.
IF gift funds, the borrower must provide 2 months statements for the same reasons and a standard gift letter.
Gift funds do not need to be seasoned. They can be transferred to escrow just prior to closing.
There are lots of ways to plan and make a loan simple but bad information provided to people can really mess them up.
Online snapshots are often not accepted. Normal statements sent once a month are always acceptable.
Different lenders rarely have rules that are different. Each situation is different.
For those who believe that BANKS are some magical place to get free loans, there is no such thing.
I had a guy call me today. He went to “Big Bad Bank” for a quote today.
My quote for the same loan 10 minutes later was $2400 less than BBB quoted him. This happens often.
Guidelines are GUIDELINES are guidelines, even if they don’t make sense to you. They don’t always make sense to me either.. HLS
