Can I Get You a Loan Using Future Income? Maybe!

By
Mortgage and Lending with Skyline Home Loans NMLS #311662

In one of the latest updates to our guidelines, Fannie and Freddie will allow someone that has a job offer and a position that will start within 90 days for Fannie and 60 days for Freddie of funding to use that future income to qualify for a loan. This is great news for people that are relocating or taking time off between positions. You cannot use income from a future raise, just a new job.

Here is an overview of the new policy.

 

Future Income:

  •      Allowed for Fannie per DU Findings with the following requirements:

o   1 Unit property only

o   Purchase Transactions only

o   Primary Residence only

o   The borrower Is not employed by a family member or by an interested party to the transaction, AND The borrower is qualified using only fixed base income

o   The borrower’ start date must be within 90 days of the note date

o   The contract for future employment must:

  •      Clearly identify the employer and the borrower, be signed by the employer and be accepted and signed by the borrower
  •      must clearly identify the terms of employment, including position, type, and rate of pay and start date, and
  •      must be non-contingent.   If conditions of employment exist, all conditions must be satisfied prior to closing by verbal verification or written documentation.  This confirmation must be noted in the file.

o   In addition to the amount of reserves required by DU or for the transaction type, one of the following is required:

o   Sufficient PITIA for the subject property for six months, OR

o   Sufficient PITIA for the subject property for the number of months between the note date and the employment start date, plus ONE. 

  •    Freddie LP guidelines have been updated with the following:

o   Income from future salary increase is no longer permitted to be used for qualifying

o   For income received from future primary employment, the time frame between the Mortgage Note Date and the commencement of employment (the employment gap) must not exceed 60 days

 
Please call me if I can help any clients that might fall into these circumstances.
Posted by

Matt Brady

 

Builder Sales Manager, NMLS ID#311662

(858)342-8659 cell |844-268-1952fax

 

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mbrady@skylinehomeloans.com| mattbrady.skylinehomeloans.com    
1455 Frazee Road., Suite 705| San Diego, CA 92108

 

    

 

 

 

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Rainmaker
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Kat Palmiotti
Grand Lux Realty, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Being able to use a contract for new employment to purchase a primary residence can be a huge help for someone moving into a new area!

Oct 14, 2017 02:51 AM #1
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Matt Brady

Lending With Competence And Character
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