- We have guaranteed bonus and commission income - how do you treat this? Normally when a borrower has commission or bonus income, it is averaged over a 24 month period. If the income is guaranteed, it is treated like regular salary.
- When does an interested party contribution (IPC) become a sales concession? Sales concessions are IPC's that take the for of non-realty items: decorating allowances, furniture, moving costs, etc. IPC's become seller concessions when they exceed the amount of the IPC exceeds the limit or the amount of the concession exceeds the borrower's closing costs. Must be careful with these. If limits are exceeded, underwriting will reduce the purchase price by this amount. It is the only way Fannie Mae will accept a loan of this nature.
- What is the maximum age of an appraisal? Properties must be appraised within the 12 months that precede the date of the note and mortgage. If the appraisal report will be more than four months old on the date of the note and mortgage, the appraiser must inspect the exterior of the property and review current market data to determine whether the property has declined in value since the date of the original appraisal.
Please feel free to contact me with any questions you might have. I look forward to working with you and your clients. Please remember, I am licensed in Virginia, North Carolina and Florida.
Jennifer Keenan, Sr Mortgage Consultant, NMLS# 101837
Tidewater Home Funding, 757-272-4199