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Buyer Beware! Disaster Relief Affects Mortgage Qualifications

Mandi Henriod with Intercap Lending explains in detail some things you need to be aware of if you’re going to purchase or refinance in the next 90-180 days.

We have had a number of buyers who have received some sort of disaster relief through the Cares Act as a result of COVID-19.  This can be a really good thing for those who are in need.  However, we’ve had several buyers get “bit” by receiving some of these benefits.  Some of the benefits they had received they hadn’t even asked for, yet it affected their ability to complete either a refinance or a purchase.  Mandi Henriod with Intercap Lending explains in detail some things you need to be aware of if you’re going to purchase or refinance in the next 90-180 days. 

  • Employment Furlough – need to be back at work and have 1 paystub showing that you have returned at previous pay and schedule prior to closing.
  • Debt Forbearance – If you take advantage of The Care Act and request forbearance on debts such as mortgage, car loans, and credit card debts mortgage lending will require that you are caught up and current on those debts for 3 months prior to closing on a mortgage loan.
  • Asset Withdrawals – If you are pulling funds from a retirement account, be careful to NOT request as part of The Care Act.  If the documentation of withdrawal notates that it has been taken as part of The Care Act mortgage lending will not be granted.

If you have any questions regarding mortgage forbearance, reach out to Mandi Henriod at Mandi@Intercaplending.com or 801-638-1005.

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