Marijuana
In Illinois recreational marijuana is legal. However, it is still against the law federally. Since most banks are federally insured they can not do a mortgage for you if you work in the Marijuana industry. However, most mortgage lenders or mortgage brokers are state regulated therefore they can but only as a conventional loan.
CryptoCurrency
Cryptocurrency can be used as a source of funds for a mortgage transaction when converted to U.S. dollars and deposited into an eligible asset account. All assets must be verified in accordance with Fannie Mae B3-4.2-01, Verification of Deposits and Assets (07/07/2021) or Freddie Mac 5501.3 Asset eligibility and documentation requirements The source of a large deposit may be from cryptocurrency, provided there is documentation to show the funds came from the digital currency account owned by the borrower.
Gift Funds
Conventional Loans
Acceptable Donors
-Spouse
-child/other dependent
-Individual related to the borrower by blood, marriage, adoption, or legal guardianship
-Fiancé/fiancée/domestic partner
-Former relative (ex-spouse, godparent, a relative of a domestic partner
-Donor of gift may not have affiliation with builder, developer, agent, or any other interested party
FHA Loans
Gifts may be provided by:
• the Borrower’s Family Member;
• the Borrower’s employer or labor union;
• a close friend with a clearly defined and documented interest in the Borrower;
• a charitable organization; or
• a governmental agency or public Entity that has a program providing homeownership assistance to low or moderate-income families or first-time homebuyers.
The gift donor may not be a person or Entity with an interest in the sale of the Property, such as the seller, Dealer, manufacturer, real estate broker or any person or any other affiliated Entity.
USDA and VA Loans
Gifts may not come from any source that has an interest in the sale of the property (seller, builder, real estate agent, etc.). Gift funds must be properly sourced and include; gift letter, evidence of funds from the party providing the gift, and evidence funds were deposited into the applicant’s account. Cash on hand is not acceptable.
Major Credit Event
We are going to define a major credit event as Chapter 7 bankruptcy, Chapter 13 Bankruptcy, foreclosure, short sale, or deed-in-lieu of foreclosure, Here are the basic waiting periods before you can qualify for a mortgage.
Foreclosure
Conventional 7 years
FHA 3 years
VA 2 years
USDA 3 years
Short Sale/Deed In Lieu
Conventional 4 years
FHA 3 years
VA Varies
USDA 3 years
Chapter 7 BK
Conventional 4 years
FHA 2 years
VA 2 years
USDA 3 years
Ch 13 BK
Conventional 2 years discharge
FHA 1 year of on-time payments to the bankruptcy trustee
VA 1 year
USDA 1 year
Why did one lender decline me and another lender approve me?
This is one of the most important topics when shopping for a home loan. Just because Fannie Mae and Freddie Mac offer home loans with a down payment starting at 3% or 5% doesn't mean a lender has to. They can always make the requirements stricter. For example, a credit union or community bank might want a minimum down payment of 20% even though they could offer a lower down payment option. The same concept applies to credit scores and debt to income. Just because the minimum credit score on one program is 620 doesn't mean a bank cant require a 680 credit score to offer you the same loan. This is where the challenge is for a consumer. If one lender tells you no that doesn't mean it isn't possible. There are a few lenders in the marketplace that really do follow the bare minimum guidelines or close to.
