When pre-approving our Borrowers, it is important to understand the guidelines set by different lending Agencies based on their income, employment, assets, and situation. Here is a brief overview:
Overtime, Bonus, Commission:
- Fannie Mae: Requires a minimum 12-month history of receipt.
- Freddie Mac: Requires a minimum of 2 years.
- FHA: Considers a minimum 12-month history of receipt.
Part-time employment:
- Fannie Mae: Requires a minimum 12-month history of receipt.
- Freddie Mac: Requires a minimum of 2 years.
- FHA: Requires a minimum of 2 years.
Assets:
- Fannie Mae: Typically looks at 60 days of the most recent bank statements.
- Freddie Mac: Typically reviews 30 days of the most recent bank statement.
- FHA: Typically examines 60 days of the most recent bank statements.
Non-mortgage charge-offs, collections:
- Fannie Mae: Allows unlimited amount to remain unpaid only on a primary SFR.
- Freddie Mac: LPA determines what remains open or must be paid off.
- FHA: Requires disputed accounts over $1,000 to be paid off and non-disputed accounts over $2,000 to be paid off or use 5% of the balance in DTI.
At MortgageDepot we work with all 3 lending agencies giving us the upper hand when it comes to qualifying borrowers for a loan. Contact us for more information.
