Credit

Q. If a student loan is deferred, do we have to count it in the ratios?
A.On USDA and Conventional the payment has to be calculated regardless of time left under deferred status.
FHA/VA the payment may be excluded from ratios if deferred 12 months or more  from closing (note date).(5-1-13)
Q. FHA loan, if the client has a Federal Tax Lien for $70,000 and has made payments under a Direct Deposti Installment  agreement (DDIA) for 2 years, if the IRS subordinated could we do this loan?
A.  No, we can not work around this lien, it would need to be paid in full. (4-25-13)nbsp;

Q.  I have a Conventional Client with a medical  collection of $783. Will we require it to be paid?
A. With Conventioal Financing DU will provide a general recommendation on whether it needs to be paid off.   Keep in mind the underwriter has the discretion to have it be paid based on overall file risk.  If it’s isolated most likely it will not have to be paid off.

 

Q. How long do student loans need to be deferred so that we don’t need to consider them in the qualifying ratios? (4.18.13)
A. FHA and VA loans allow the payments to be excluded if they are deferred for 12 months or greater.  Under conventional, Jumbo and USDA they need to be counted in ratios regardless of how long the deferment period is.