Please be advised that the following applies for Conventional loans when the borrower is not the sole owner of the account.

• A joint access letter is required from the individual who is not on the loan.

• If there are deposits from the other parties showing on the account, they are identified as payroll, and you have a joint access letter nothing further is required. This is for non-purchasing spouses on primary purchases only.

• If there are deposits from the other parties showing on the account, they are identified as payroll, and you have a joint access letter we must verify the borrower has 5% or their own funds not including the direct deposit for the non-purchasing spouse on 2nd homes.

• If there are deposits from the other parties showing on the account, they are identified as payroll, you have a joint access letter, and the borrower is purchasing an investment property; all deposits from other party’s payroll must be deducted from the outstanding balance on the statement.

• If there are deposits greater than 50% of the gross monthly income that are from the other party on the statement that are not payroll, we will need to document the source of the deposit. We must consider if it can be eligible gift funds or ineligible for use towards the transaction, while also deducting from the available balance. This applies to primary and secondary. For Investments properties the funds would need to be backed out of the available funds for closing and reserves as gifts are not allowed.

• Fannie Mae and Freddie Mac both allow when the single deposit that exceeds 50% of the total qualifying income can be partially documented. If you can only document a portion of it, you can reduce the asset by the undocumented amount. Hope everyone had an amazing New Year and let me know if I can be of any help to you in 2018!

By Andrew Augustyniak Licensed Mortgage Loan Originator
Peoples Mortgage Co