AC-024 Important Updates: Blue Jumbo, Conventional and USDA
Important Updates: Blue Jumbo, Conventional and USDA
FLCBank is providing updates on the following Loan Programs:
Blue Jumbo
The Blue Jumbo Program is being simplified from two (2) underwriting options into one, while still offering 15 and 30 years fixed rate and 5/6, 7/6 & 10/6 adjustable rate term mortgages with loan amounts up to $3MM on primary residences and second home mortgages.
The updates are effective immediately. Please check out the updated guides posted in the resource center.
Conventional
Fannie Mae announced via bulletin SEL-5023-08, updates to credit guidelines on the following topics:
- Gifts and Gifts of Equity: Gift funds from the seller who is also an acceptable donor and not affiliated with any other interested party to the transaction are allowed. The donor of a gift of equity is not considered an interested party in the transaction.
- Trust Income: Added requirements that funds used from a trust for down payment, closing costs, or reserves must be subtracted from the total funds available to determine if the income meets the requirements in the continuity of this type of income. Furthermore, the documentation and use of trust income depends on the manner by which this type of income is received:
- Variable trust payments require a minimum 24-month history of receipt and must be documented with two years of tax returns……..