Calculation of income and assets.

CFR · 2024-01-01 · US · Title 7

The lender must obtain and maintain documentation in the loan file supporting the lender's determination of all income and assets described in this section. (a) (1) The lender must examine the applicant's past income record for at least the past 2 years and any applicable training and/or education. The Agency may require additional information and documentation from self-employed applicants and applicants employed by businesses owned by family members. (2) The lender must establish an applicant's anticipated amount of repayment income and the likelihood of its continuance for at least the next 3 years to determine an applicant's capacity to repay a requested mortgage loan in accordance with § 3555.151(h)(1). (3) Income may not be used in calculating an applicant's ratios if it is from any source that cannot be verified, is not stable, or is likely not to continue. (4) The following types of income are examples of income not included in repayment income: (i) Any student financial aid received by household members for tuition, fees, books, equipment, materials, and transportation; (ii) Amounts received that are specifically for, or in reimbursement of the cost of medical expenses for any family member; (iii) Temporary, nonrecurring, or sporadic income (including gifts); (iv) Lump sum additions to family assets such as inheritances, capital (v) Payments for the care of foster children or adults; and (vi) Supplemental Nutrition Assistance Program payments. (b) (1) Applicants must

official document · source cfr-2024 · id 7:§ 3555.152