MortgageDepot is pleased to announce the following changes to our wholesale conforming underwriting guidelines. These changes are effective immediately.

  • For a borrower who is qualified using base pay, bonus, overtime or commission income less than 25% of the borrower’s qualifying income, unreimbursed employee business expenses are not required to be deducted from the borrower’s qualifying income. This applies regardless of whether unreimbursed employee business expenses are identified on tax returns or tax transcripts received from the IRS.
  • We are revising the minimum monthly payment amount that must be included in the debt-to-income (DTI) calculation when a student loan is deferred or is in forbearance and no monthly payment is verified from 2% to 1% of the outstanding balance of the student loan.

What this is saying is that Fannie Mae and Freddie Mac are loosening their guidelines and they are making to easier for borrowers to qualify for loans thus expanding both the purchase market and the refinance market. These changes are positive for both the buyer and the homeowner. For those borrowers that were previously denied a loan please contact us for new qualifying guidelines.

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