Happy Friday! We have some good questions this week, here we go...
- I am purchasing a home using VA eligibility. I would like to put my daughter on title. Is this an issue? You may only have on title the veteran and the veteran's spouse. Children are not allowed to use a parent's VA eligibility nor are they allowed to be on title.
- We are interested in buying a home. We have heard a lot about 97% programs, what is the difference between this and FHA? The 97% programs are for first-time homebuyers, the monthly mortgage insurance is at a higher rate, 35% coverage. But, the mortgage insurance will fall off automatically at 78% and by request at 80%. The 97% program is a conventional program and the rate is reflective of the market. FHA is not only for a first-time homebuyer. The mortgage insurance is at a lower rate, but it will continue for the life of the loan. Because FHA is a government backed program, the rate is reflective of the market, but the rate is somewhat lower than conventional markets. The 3.5% down payment with FHA can be a gift. This pretty much sums it up.
- I do not understand why I am considered self-employed. I am W-2 for my full-time job and only own 30% of a new start up business. I also do not understand why the first year's loss is deducted from my income? If a borrower has any self-employed income, you are considered self-employed. In computing a gain or loss for the first year, I know it does not seem fair, but the loss is deducted against income and the gain cannot be included in income for the first year. The reason the gain cannot be included is because you do not have at least a two-year history of receiving it yet.
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, Senior Mortgage Consultant
757.366.8690 - firstname.lastname@example.org
NMLS# 101837, Licensed in Virginia, North Carolina & Florida