If a borrower is selling their current home and it is under contract, but will not close until after the subject transaction closes, are we required to count the payment in ratios?-
If a borrower is selling their current home and it is under contract, but will not close until after the subject transaction closes, are we required to count the payment in ratios?
If the current principal residence is pending sale, but the transaction will not close prior to the subject transaction, and the borrower is purchasing a new principal residence, the current PITIA and the proposed PITIA must be used in qualifying the borrower for the new mortgage loan. However, Arch will not require the current principal residence’s PITIA to be used in qualifying as long as the following documentation is provided: 1) the executed sales contract for the current residence, and 2) confirmation that any financing contingencies have been cleared.
Does Arch provide contract underwriting services?
Yes! Arch Fulfillment Services (AFS), an affiliate of Arch MI, offers secure, efficient, consultative contract underwriting services. Our expert team is ready to underwrite to your investors’ guidelines — for loans with or without mortgage insurance.
We offer the capability to underwrite to a wide range of investor guidelines, including Fannie Mae, Freddie Mac, the Federal Home Loan Bank (FHLB) system and all investors listed in AllRegs®. For more information, please contact your Arch MI Account Manager.