FNMA

Question 1

Minimum credit score: FNMA fixed or ARM (DU)

Answer 1

620

B3-5.1-01 General Requirements for Credit Scores

Question 2

Minimum credit score: FNMA ARM (manual underwrite)

Answer 2

640

B-5.1-1

Question 3

Conventional cash-out: max LTV and minimum credit score on a manufactured home.

Answer 3

65% and 640

Question 4

Do you have to be a first-time homebuyer to qualify for a FNMA HomeReady mortgage?

Answer 4

No

Question 5

FNMA: what is the waiting period after discharge of a Chapter 7 or 11 bankruptcy?

Answer 5

4 yrs

-or-

2 yrs with extenuating circumstances

Question 6

FNMA: what is the waiting period after a foreclosure?

Answer 6

Seven years, or three years if extenuating circumstances can be documented.

Question 7

Conventional: Max LTV on a 2-unit property

Answer 7

85%

Question 8

Conventional: max LTV on a 3-4 unit property

Answer 8

75%

Question 9

HomeReady and HomePossible: can gift funds be used for a down payment?

Answer 9

Yes - on HR/HP, but not on traditional FNMA FHLMC mortgages.

Question 10

FNMA: A property in which the borrower does not reside is still considered a principle residence under these circumstances:

Answer 10

Borrower purchasing a principle residence for either a parent or disabled child who can’t work, or has insufficient income to qualify for a mortgage.

Or

There are multiple borrowers and at least one will reside in the property.

Question 11

FNMA: are 401k funds allowable for down payment, closing costs, and reserves? How do you calculate the amount?

Answer 11

Yes -

Don’t know. Use 60% to be safe