Rookies & No Short Sale Seasoning & 2nd Job Seasoning

We met First Time Home Buyers over the weekend who had been woefully misinformed by other lenders, driving home our point about the need for proper training and education in the lending arena. Below are a few things all loan officers should remember.

No Seasoning is required after a short sale if there were no late mortgage payments prior to a short sale. We met home buyers yesterday who had been told by four lenders they needed to wait three years to buy a home. We immediately asked if they had any late payments (they had none), and informed them they qualified now.

2nd Job requires 2 years of seasoning. We met home-buyers who had been pre-qualified by a credit union, but the loan officer used income from a 2nd, part-time job that the borrower had just started. Fannie and Freddie will not allow it.

Don’t forget about HOA dues when pre-qualifying. We also met home buyers looking for a condo, and their previous loan officer forgot to account for HOA dues when pre-qualifying them. Debt ratios are very tight for this couple, so $300 in HOA dues sharply decreases their qualification limit.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646