Getting pre-approved for a mortgage is not only creditable to the seller when presenting your offer, but you will also know whether you can afford the mortgage. Besides knowing what the payments will be, including taxes and insurance, you will know the closing costs and how much you need for a downpayment and closing costs. To help you better serve our borrowers, we’ve compiled a quick reference guide outlining the key requirements for Conventional mortgage and FHA loans.
Income and Employment Guidelines
Overtime, Bonus, Commission
- Fannie Mae: Requires a minimum 12-month history of receipt.
- Freddie Mac: Requires a minimum 2-year history of receipt.
- FHA: Requires a minimum 12-month history of receipt.
Part-Time Employment
- Fannie Mae: Requires a minimum 12-month history of receipt.
- Freddie Mac: Requires a minimum 2-year history of receipt.
- FHA: Requires a minimum 2-year history of receipt.
Asset Guidelines
- Fannie Mae: Typically requires the most recent 60 days of bank statements.
- Freddie Mac: Typically requires the most recent 30 days of bank statements.
- FHA: Typically requires the most recent 60 days of bank statements.
Non-Mortgage Charge-Offs and Collections
- Fannie Mae: Allows unlimited unpaid amounts on non-mortgage accounts for primary single-family residences (SFR).
- Freddie Mac: LPA findings determine whether accounts must be paid off or can remain open.
- FHA:
- Disputed accounts over $1,000 must be paid off.
- Non-disputed accounts over $2,000 must be paid off, or 5% of the balance can be included in the borrower’s DTI.
Why This Matters
Understanding these guidelines is crucial for accurately pre-approving our borrowers and ensuring a smooth mortgage process.
Contact us to learn more about our services and how we can help you get approved for a mortgage loan.