All Forum Posts by: Sam Stabler
Sam Stabler has started 19 posts and replied 33 times.
Post: DTI Question for Underwriter- HELOC's
- Posts 33
- Votes 5
I guess to be clear, I should state that I do realize HELOC's aren't bought by Frannie/Freddie. I understand that, but I wanted to know how do underwriters who are underwriting a Conventional Loan which will be bought by Fannie/Freddie calculate and existing HELOC with no balance? (Actual payment or fully amortized)
Post: DTI Question for Underwriter- HELOC's
- Posts 33
- Votes 5
@Sam Stabler
Where I originate loans (big nationwide bank lender), we assume a 20 year amortization and calculate based on if you were to use the entire line. So if you apply for $100k, we are going to assume you use $100k and amortize the payment over 20 years, factor the payment in with any debts reporting on credit against monthly income and that's your DTI. In a nut shell. Hope this helps!
So some are saying, it's Interest-Only and some are saying it becomes fully amortized based on the Commitment Amount. Does anyone know what the Underwriting standard/guideline is if its a Conventional Loan that's going to be bought by Freddie/Fannie?
Post: DTI Question for Underwriter- HELOC's
- Posts 33
- Votes 5
Hi Guys,
How do underwriters calculate a HELOC on the DTI calculation during a 10-yr draw period?
1) Do they include the actual Interest-Only payment reported on the Credit Report?
2) Or do they term out/fully amortize the Commitment Amount regardless even if there is no outstanding on the line?