Can you get a conventional loan with charge-offs? The Fannie Mae-Freddie Mac charge-off guidelines do not automatically require every non-mortgage charge-off to be paid before closing. Treatment depends on the agency, underwriting method, property occupancy, number of units, and type of debt. A mortgage-related charge-off may trigger a waiting period, while certain non-mortgage charge-offs may…
How does a credit card balance affect the debt-to-income ratio? How credit card balance affects debt-to-income ratio depends mainly on the required monthly payment, not the total amount owed. Mortgage lenders generally include the minimum payment shown on your credit report in your monthly debt obligations. A higher balance may increase that payment and raise…
Working With a Loan Officer: Mortgage Process From Pre-Approval to Closing Your journey with a loan officer begins even before you pick out your dream home and continues through to closing day. A loan officer dives into your finances—income, credit, assets, debts—and listens to your homebuying goals. They walk you through mortgage options, help you…
Unsourced Funds in Mortgage Underwriting: 2026 Large Deposit and Bank Statement Rules A large deposit in your bank account does not automatically mean your mortgage will be denied. However, money that cannot be tied to an acceptable source can create problems when you need it for the down payment, closing costs, debt payoff, or required…
Buying a Second Primary Home While Renting Your Current Home You can buy a new primary residence and keep your current house as a rental. You don’t have to sell your current home before qualifying for another owner-occupied mortgage. The key is to show the new property will be your main home and that you…
Credit Score Mortgage Guidelines for FHA, VA, USDA, and Conventional Loans This guide covers credit score mortgage guidelines for FHA, VA, USDA, and conventional loans. There is no universal minimum credit score required to buy a house. The required credit score for a mortgage depends on loan type, down payment, automated underwriting results, overall credit…
HUD, the parent of FHA, allows borrowers down to a 500 credit score to qualify for an FHA loan. However, for borrowers with under a 580 credit score, a 10% down payment is required.
This guide covers mortgage guidelines for buying a new house when starting a new job or facing an employment gap. Getting a new job does not mean you cannot buy a home. You do not have to work for the same employer for two years to qualify for a mortgage. Lenders mainly want to see…
Getting a mortgage after retirement involves qualifying based on income, assets, and credit, even if those come from retirement. Many lenders consider social security, pensions, retirement account distributions, and rental income. Some potential borrowers can qualify for the mortgage by using assets in either conventional or Non-QM mortgage loan programs. Many factors can affect a…
A two-year employment history does not necessarily mean two consecutive years at the same job. You can have gaps in employment and/or multiple jobs in the most recent two years and still qualify for mortgage approval. In some cases, you can qualify for a mortgage with 12 months employment history.
Understanding how credit scores impact DTI starts with one important fact: your credit score does not change the mathematical calculation of your debt-to-income ratio. DTI is calculated by dividing qualifying monthly debt payments by gross monthly income. However, mortgage underwriters and automated underwriting systems review your credit history alongside your DTI, income, assets, reserves, loan-to-value…
Verified assets for home loan approval are funds that lenders can verify are available for the down payment and closing costs, and for holding in reserve. Verified assets may include checking and savings accounts, investments, eligible retirement accounts, gifts, or other approved sources. Underwriters need to review recent transactions and account activity. This helps determine…
FHA Bankruptcy Waiting Period: Chapter 7 and Chapter 13 Guidelines The waiting period for an FHA loan after bankruptcy depends on the type of bankruptcy filed, the case’s resolution, and the timing of the lender’s request for the FHA case number. For Chapter 7 bankruptcy, applicants must wait two years after discharge before applying for…
Oklahoma mortgage loans include FHA, VA, USDA, conventional, jumbo, and Non-QM financing for eligible homebuyers and property investors. The right program depends on your credit, income, debts, down payment, military eligibility, property location, and intended occupancy. Oklahoma buyers may also qualify for assistance through OHFA, REI Oklahoma, or local programs. A mortgage preapproval can help…
Borrowers in Chapter 13 bankruptcy may still be eligible to buy or refinance a home with an FHA loan. FHA guidelines permit applicants to obtain an FHA-insured mortgage while making payments under a Chapter 13 repayment plan. Wendy Lahn, a senior mortgage loan originator at Gustan Cho Associates says the following about FHA Chapter 13…
Waiting period mortgage guidelines describe the period of time, usually after bankruptcy, foreclosure, short sale, or deed in lieu, that is required before a borrower is eligible to apply for a new mortgage. The waiting period may vary depending on the credit event, loan programs, and how the file will be underwritten. Different loan programs,…
FHA Case Number: Assignment, Transfer & Cancellation Guide This guide will cover and discuss what an FHA case number is, how it works, and how to transfer it from one lender to another on new FHA loan applications. We will also discuss transfers from one lender to a new lender. FHA loans are the most…
This guide covers FHA DTI guidelines on manual underwrites. The key distinction between manual and automated underwriting system guidelines lies in the debt-to-income ratio cap applied during manual underwriting. As per FHA DTI ratios on manual underwrites, the allowable DTI ratios are subject to specific caps, and these limits are influenced by the number of…
This guide covers solutions for when things go wrong during the mortgage process. The mortgage process can be very stressful. This holds especially true for borrowers with credit issues or higher debt-to-income ratios. Every mortgage loan application is different from the next. Some mortgage files can be tricky. The most important phase is the pre-approval…
High-balance mortgage loans help qualified borrowers finance more expensive homes, but FHA, VA, and conforming programs define “high balance” differently. FHA and conforming high-balance loans depend on county loan limits. VA borrowers with full entitlement do not have a VA-imposed loan limit, although income, appraisal, entitlement, and lender approval still determine how much they can…
Can you buy a house while in Chapter 13 bankruptcy? Yes, buying a house while in Chapter 13 bankruptcy is possible with an FHA or VA loan while the repayment plan is ongoing. Borrowers usually need to have made at least 12 months of on-time payments and get written approval from the bankruptcy court or…
HUD forbearance guidelines allow homeowners with FHA loans experiencing a temporary financial hardship to request assistance from their mortgage servicer. Forbearance may temporarily reduce or pause mortgage payments, but it does not erase the amount owed. Once the hardship ends, the servicer may review the borrower for options such as a repayment plan, an FHA…
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