The Ins and Outs of
Underwriting
GIFT FUNDS


Gift letter and evidence
of receipt, transfer, and
deposit of funds.
Documentation: Deposit
slips, wire transfer,
certified check
validating the withdraw
of funds from the
donor’s account.
GIFT FUNDS

The donor must be a
family member
parent, brother, sister,
etc. OR someone with
whom the borrower
has established a long
term relationship.
OTHER ASSETS
Savings, checking,
money market,
retirement account,
stocks/bonds, etc.
 Provide ALL pages to
the asset. If cashing
in stock or bonds,
provide the latest
statement and proof
the asset was cashed
and deposited.

CREDIT


Credit inquires need
to be addressed and if
new credit, add to
debts.
Ensure that the data
reflected on the credit
report is consistent
with what the
borrower has provided
in the application.
INCOME
Paystub should
include employer’s
name, borrower’s
name, 30 days of
income, and YTD
income.
 Watch deductions (can
be an indicator of
additional debts such
as child support.

TAX RETURNS

Three years tax
returns are required
or three years tax
transcripts from a
third party. Both the
tax returns or
transcripts need to be
signed.
EMPLOYMENT

If using income from
part-time, overtime,
or commission, the
employer needs to
complete the VOE
Form 1005 to validate
a two year history and
the likelihood the
income will continue.
SELLER CONCESSIONS

Seller contributions
could require that the
loan amount be
reduced if the
contributions exceed
the threshold as set by
each agency.
APPRAISALS
Repairs
 Mold
 Roof/snow covered
 Foundation/
Settlement
 Peeling Paint
 Identity of Interest

APPRAISAL

Prohibitions to use of Appraisal Update Report
In addition to the prohibitions provided in Mortgagee Letter
2009-51, the following prohibitions are applicable to the use of
the Appraisal Update Report:
One time use of Appraisal Update Report:
An original appraisal report can only be updated one time via
the Appraisal Update Report, limiting the use of the Appraisal
Update Report to one time.
Eligible Intended User of Report:
The Appraisal Update Report may not be used when ordered
by a lender who is not identified as an intended user in the
original appraisal report unless the appraiser incorporates
the original report being updated by attachment rather
than by reference per Advisory Opinion 3 of the Uniform
Standards of Professional Appraisal Practice (USPAP).
RESOURCES
www.nifa.org
 www.mrbp.usbank.com
 www.fhaoutreach.gov/fhafaq
 www.rurdev.usda.gov
 www.vip.vba.va.gov
 www.fanniemae.com

THANK YOU