Getting pre-approved for a mortgage isn’t solely creditable to the vendor when presenting your supply, however additionally, you will know whether or not you’ll be able to afford the mortgage. Moreover figuring out what the funds shall be, together with taxes and insurance coverage, you’ll know the closing prices and the way a lot you want for a downpayment and shutting prices. That can assist you higher serve our debtors, we’ve compiled a fast reference information outlining the important thing necessities for Conventional mortgage and FHA loans.
Earnings and Employment Pointers
Time beyond regulation, Bonus, Fee
- Fannie Mae: Requires a minimal 12-month historical past of receipt.
- Freddie Mac: Requires a minimal 2-year historical past of receipt.
- FHA: Requires a minimal 12-month historical past of receipt.
Half-Time Employment
- Fannie Mae: Requires a minimal 12-month historical past of receipt.
- Freddie Mac: Requires a minimal 2-year historical past of receipt.
- FHA: Requires a minimal 2-year historical past of receipt.
Asset Pointers
- Fannie Mae: Sometimes requires the most up-to-date 60 days of financial institution statements.
- Freddie Mac: Sometimes requires the most up-to-date 30 days of financial institution statements.
- FHA: Sometimes requires the most up-to-date 60 days of financial institution statements.
Non-Mortgage Cost-Offs and Collections
- Fannie Mae: Permits limitless unpaid quantities on non-mortgage accounts for main single-family residences (SFR).
- Freddie Mac: LPA findings decide whether or not accounts have to be paid off or can stay open.
- FHA:
- Disputed accounts over $1,000 have to be paid off.
- Non-disputed accounts over $2,000 have to be paid off, or 5% of the steadiness may be included within the borrower’s DTI.
Why This Issues
Understanding these pointers is essential for precisely pre-approving our debtors and making certain a easy mortgage course of.
Contact us to study extra about our providers and the way we may help you get permitted for a mortgage mortgage.