FHFA Issues Final “Enterprise Seller/Servicer Minimum Financial Eligibility Requirements – Fannie Mae announcement via LL-2022-04 dated September 21, 2022, and Freddie Mac announcement via Bulletin 2022-19 dated September 21, 2022

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If you receive 1099 income vs. W2 Income, a home financing lender may consider your income as self-employed. In other circumstances, they may just average your 1099 income. How your income is calculated is based on the job circumstances, your tax returns, and loan program requirements. Everyone’s situation can be slightly different, so let’s talk before you decide to start exploring your home options.
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If you receive 1099 income vs. W2 Income, a home financing lender may consider your income as self-employed. In other circumstances, they may just average your 1099 income. How your income is calculated is based on the job circumstances, your tax returns, and loan program requirements. Everyone’s situation can be slightly different, so let’s talk before you decide to start exploring your home options.

ByBrandon Butler

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When calculating Self-Employed income to buy a new home, lenders will look at gross income, minus expenses and then add back in paper write-offs such as depreciation, depletion, amortization, casualty losses, net operating losses, or other one-time expenses. Then, we average that income over the time period dictated by the loan program. If you are self-employed, I’m here to answer your questions!
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When calculating Self-Employed income to buy a new home, lenders will look at gross income, minus expenses and then add back in paper write-offs such as depreciation, depletion, amortization, casualty losses, net operating losses, or other one-time expenses. Then, we average that income over the time period dictated by the loan program. If you are self-employed, I’m here to answer your questions!

ByBrandon Butler

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Sometimes there is a fine line between what lenders consider to be a second home vs. an investment property. This is important for home buyers because the underwriting guidelines and down payment options are more stringent on an investment home vs. a true second home.  I have a fact sheet that describes the difference, so comment below and I will send that to you!
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Sometimes there is a fine line between what lenders consider to be a second home vs. an investment property. This is important for home buyers because the underwriting guidelines and down payment options are more stringent on an investment home vs. a true second home.  I have a fact sheet that describes the difference, so comment below and I will send that to you!

ByBrandon Butler

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Sales Contract Tip!  When you are buying a home, keep personal property out of the contract. Personal property is not appliances, fixtures, or smaller maintenance equipment for the home. However, cars, furniture, TVs, and Art, just to name a few, are considered personal property. The reason is that home financing restrictions consider personal property to be a concession from an interested party [the seller] and may be viewed as something of value that could affect the appraisal of your home.  If you’re not sure, just message me before you present a contract and I’ll help you figure it out!
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Sales Contract Tip!  When you are buying a home, keep personal property out of the contract. Personal property is not appliances, fixtures, or smaller maintenance equipment for the home. However, cars, furniture, TVs, and Art, just to name a few, are considered personal property. The reason is that home financing restrictions consider personal property to be a concession from an interested party [the seller] and may be viewed as something of value that could affect the appraisal of your home.  If you’re not sure, just message me before you present a contract and I’ll help you figure it out!

ByBrandon Butler

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