The U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Finance Agency (FHFA) announced clarifications to Freddie Mac’s policies that make clear it will purchase mortgages secured by a property owned by an individual and rented to a group home for persons with disabilities. Stoffer Mortgage applauds these government agencies for providing […]
What Agencies Say About Homes with Outbuildings
We see all kinds of properties and one type that creates a little confusion are homes with an outbuilding or two. This does not include a home that has an auxiliary dwelling unit (which has its own unique set of rules). Below is what the agencies say about properties with outbuildings: Conventional: For small barns […]
A Hidden Secret About Credit Scores: Paying Bills on Time Could Earn a Low Credit Score
Many future buyers focus on paying bills on time and paying off debt as their top two primary tasks with regards to credit in order to position themselves for better interest rates and loan approval. As well, borrowers today are very much aware of the importance of a high credit score, but many don’t know […]
Agency Rules for Borrowers Renting Out Their Current Residences
A borrower can rent out their current residence to offset the current mortgage from debt ratios for qualifying but it’s different per agency. As always, make sure you are aware of individual lender overlays that are over and above agency guidelines. Here are the agency comparisons: Fannie Mae and Freddie Mac: Fannie Mae does not […]
Are You Familiar with the Collateral Underwriter Automated Underwriting System?
Most people in the industry are now aware of automated underwriting systems (AUS) on the credit side of a mortgage transaction. These systems pull information from the loan application and the credit report to analyze and make a determination on the borrower’s creditworthiness. Many people outside of mortgage lending don’t know about another automated underwriting […]
Is Cryptocurrency Acceptable as a Form of Down Payment on a Home Purchase?
The recent boom in cryptocurrency has generated a lot of questions in terms of how the agencies view its use for down payment and closing costs. Here is what we found: Fannie Mae and Freddie Mac: Neither agency addresses assets from cryptocurrency. Both agencies consider this currency “liquid assets” and require the same documentation type […]
