Fannie Mae
Ok--here's the situation:we are refinancing our rental property....under what we wanted but was sent back to underwriting for review for more funds....guess what just popped up---a late on a credit card payment--payment was made but was short....ok, so we go to second lender---they are going back to original credit (before ) late pay...so we are approved BUT they (ffannie mae) want 2 years homeownership----we are a MONTH away from 2 years, so they will try to manually override that clause....what are your thoughts? The underwriter seems confident this will go through....any experience with freddie mac?
I would call the credit card Co. and explain, you may get it deleted.
tried that---no luck--76 months with no lates and now this....
two year ownership clause? sounds odd. Fannie Mae and Freddie Mac do not have seasoning requirements for ownership of property. If you buy a house at a foreclosure for 50K and it appraises for 100K a month later, typical fannie regs permit cash-out up to 80% LTV. Thus, in that scenario, you could take out a loan for 80K.
Sub-prime lenders, though, typically want to see that someone has owned a property for six months to one year before they will use appraised value rather than purchase price to determine LTV.
Sounds like someone is giving you the run-around. I've been in the business for five years and never heard of anything like a "two-year rule."
yes, I agree. Fannie/Freddie you do not have to own a home for 2 years, you just have to have lived in a house for 2 years/have a 2 year housing history. So say for example, you only lived in the house 1 year (owned) and then you previously rented for the other year, that is allowed. As long as they can verify you have been paying rent/owned a home for 2 years, you will be okay. That is a lie, it is NOT a Fannie/Freddie rules.
two year ownership clause? sounds odd. Fannie Mae and Freddie Mac do not have seasoning requirements for ownership of property. If you buy a house at a foreclosure for 50K and it appraises for 100K a month later, typical fannie regs permit cash-out up to 80% LTV. Thus, in that scenario, you could take out a loan for 80K.
Sub-prime lenders, though, typically want to see that someone has owned a property for six months to one year before they will use appraised value rather than purchase price to determine LTV.
Sounds like someone is giving you the run-around. I've been in the business for five years and never heard of anything like a "two-year rule."
Also, forgot to say, usually 1 late payment, like ever, won't kill the deal. Usually you just have to write a letter of explanation. As long as it wasn't a mortgage late, it usually isn't a big deal. If in like the past 7 years of your credit report this is the only late, this is usually overlooked with a letter of explanation.
Ok, now get this....broker said lender promised him a clear to close statement yesterday by 6pm....6 came and went..broker called at 7 and said he received fax BUT lender now needs our 2003 Schedule E (I made a separate post), to go along with *THE 2 YEAR RULE*----there is no schedule E to be found anywhere in our taxes--I'm up all night panicking---finally this morning, I talked to my hubby (did not want to get him worked up last night) and he said he filed a Schedule E a couple of months ago (we were not trying to be dishonest, but because we ran a business out of the house for part of the year and rented we did not know to report both)---so this morning I will take Schedule E to broker but something tells me that will not be enough, I feel like someone is giving me the run around.....