November 14th, 2014
- As part of my income, I receive cash dividends from my investments? We can use that income and would need the following to verify: A two-year history of receipt via federal tax returns as well as supporting tax forms filed for the income - 1099-int or 1099-div. We also have to verify the income will continue for at least 36 months.
- With qualifying for a mortgage to purchase an investment property, can I use the projected rental income as personal income? Yes, an investment property appraisal has a rent schedule. It is also helpful if you have a signed lease. Sometimes on resort property, we also ask for two years previous income an a net operating statement.
- We have been told that in order for us to refinance our home as a VA IRRL (Interest Rate Reduction Loan) we have to be income qualifying - why is that? In the past, VA did not require credit underwriting for IRRRLs. ATR (Ability to Repay) and QM (Qualified Mortgage) indicate that a borrower must show that he/she can repay the refinanced loan. First, the loan being refinanced was originated at least 6 months before the new loan's closing date, and the veteran has not been more than 30 days past due during the 6 months preceding the new loan's closing date; Next, recoupment period for all allowable fees and charges financed as part of the loan or paid at closing does not exceed thirty six (36) months, except in cases in which the loan is being refinanced from an adjustable rate to a fixed rate mortgage or in which a fixed rate loan is being refinanced into another fixed rate loan of a shorter duration; and finally, all other VA requirements for guaranteeing an IRRRL are met.!
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