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  • Welcome to the Homium Underwriting Bible
  • 📄Loan Application
    • Documenting the Loan Application Package
      • Requirements for Loan Application Package
  • 📋Eligibility
    • Mortgage Eligibility
      • Principal Residence Properties
      • Calculation of the LTV Ratio
      • Calculation of the CLTV Ratio
      • Transaction Types
      • Loan Limits
      • Loan Eligibility
      • Eligible First Liens
      • Subordinate Financing
      • Legal Requirements
    • Borrower Eligibility
      • Non US Citizen Eligibility
      • Multiple Financed Properties
      • Guarantors, Cosigners, and Non Occupying Co-borrowers
      • Inter Vivos Revocable Trust
        • Inter Vivos Revocable Trust as Eligible Mortgagor
        • Originator Requirements
        • Trust and Trustee Requirements
        • Loan Eligibility
        • Underwriting Considerations
        • Title and Title Insurance Requirements
    • Property Eligibility
      • Number of Units
      • Property Location
      • Property Requirements
      • Ineligible Properties
      • Leasehold Estates
        • Lease Requirements
        • Additional Eligibility Requirements
        • Option to Purchase Fee Interest
      • Accessory Dwelling Units
        • Construction of an ADU
        • Zoning for an ADU
      • Multiple Parcels
      • Mixed-Use Properties
      • Properties with Solar Panels
        • Leased or PPA Solar Panels
      • Properties affected by Natural Disasters
  • 🧑‍🤝‍🧑Underwriting Borrowers
    • Manual Underwriting
    • Income Assessment
      • Stable and Predictable Income
        • Determining the Need for Federal Income Tax Returns
        • Verification of Income for Non-U.S. Citizen Borrowers
        • Income Paid in Virtual Currency
      • Standards for Employment Documentation
        • Employment Documentation Provided by the Borrower
        • Employment Documentation Provided by the Borrower’s Employer
        • Employment Documentation Provided by a Third-Party Employment Verification Vendor
      • Sources of Income and Documentation
        • Base Income Calculation Guidelines
        • Military Income
        • Other Sources of Income and Documentation
          • Verification of Commission Income
          • Seasonal or Secondary Employment
            • Verification of Secondary Employment Income
            • Verification of Seasonal Income
          • Documentation Requirements for Current Receipt of Income
          • Alimony, Child Support, or Separate Maintenance
          • Automobile Allowance
          • Boarder Income
          • Capital Gains Income
          • Disability Income — Long-Term
          • Employment Offers or Contracts
          • Employment-Related Assets as Qualifying Income
          • Foreign Income
          • Foster-Care Income
          • Housing or Parsonage Allowance
          • Interest and Dividends Income
          • Notes Receivable Income
          • Public Assistance Income
          • Retirement, Government Annuity, and Pension Income
          • Royalty Payment Income
          • Schedule K-1 Income
          • Social Security Income
          • Temporary Leave Income
          • Tip Income
          • Trust Income
          • VA Benefits Income
        • Self Employed/Rental Income Documentation
          • Factors to Consider for a Self-Employed Borrower
          • Length of Self-Employment
          • Verification of Income
        • Reserve and Asset Requirements
    • Credit Assessment
      • General Requirements for Credit Scores
        • Minimum Credit Score Requirements
        • Exceptions to the Minimum Credit Score Requirement
      • Determining the Credit Score to Use
        • Foreign Credit Reports and Credit Scores
      • Requirements for Credit Reports
        • General Requirements
        • Public Records Information
        • Acceptable and Unacceptable Changes
        • Required Creditor Information
        • Format for Reporting Payment History
        • Inquiries/ Unreported Debts
        • Assessing Borrower Credit Management Skills
        • Credit Score Requirements
      • Types of Credit Reports
        • In-File Credit Reports
        • Automated Merged Credit Reports
        • Residential Mortgage Credit Reports
      • Accuracy of Credit Information in a Credit Report
        • Disputed Tradelines
      • Number and Age of Accounts
      • Payment History
      • Mortgage Payment History
        • Standard Mortgage Verifications from Servicers
        • Existing Mortgage Payment Requirements
        • Excessive Mortgage Delinquency
      • Authorized User Accounts
        • Consideration of Authorized User Accounts
      • Significant Derogatory Events and Applicable Waiting Periods
        • Identification of Significant Derogatory Credit Events in the Credit Report
        • Bankruptcy
        • Foreclosure
        • Foreclosure and Bankruptcy on the Same Mortgage
        • Deed-in-Lieu of Foreclosure, Pre-foreclosure Sale, and Charge-Off of a Mortgage Account
        • Requirements for Re-establishing Credit
      • Extenuating Circumstances and Applicable Waiting Periods
      • Non Traditional Credit Report
        • Unacceptable Uses
        • Homium Underwriting: At Least One Borrower Has No Credit Score
        • Homeownership Education
        • Number of Nontraditional Credit References Required
        • Eligible Types of Nontraditional Credit References
        • General Documentation Requirements
        • Rental Payment History
        • Standards for Individual Credit References Obtained Directly from a Creditor
        • Standards for Documenting a Nontraditional Payment History Obtained From the Borrower
        • Verification of Bank Accounts and Wire Remittance Statements
        • Borrowers with Disabilities
        • Assessment of the Payment History for Nontraditional Credit References
    • Liability Assessment
      • Monthly Obligations Not Included in Liabilities
      • Liability Qualifying Impact
        • ATR Assesment
      • Qualifying Impact from Other Real Estate Owned
        • Mortgage Assumption
        • Property Settlement Buyout
  • 🏘️Underwriting Property
    • Appraisal Requirements
      • Definition of Market Value
      • Originator/Underwriter/AMC Responsibilities
        • Confirmation and Documentation of the Current Owner
        • Objective and Unbiased Appraisals
        • Reporting Unfavorable Conditions
      • Appraiser Selection Criteria
        • Appraiser License and Certification
        • Appraiser Trainees
        • Knowledge and Experience
        • Selection of the Appraiser
        • Supervisory Appraiser
      • Unacceptable Appraisal Practices
      • Appraisal Age and Use Requirements
        • Multiple Appraisals of the Subject Property
      • Appraisal Report Forms and Exhibits
        • List of Appraisal Report Forms
        • Exhibits for Appraisals
        • Appraiser Certifications and Limiting Conditions
      • Hybrid Appraisals
        • Completing the Form 1004 Hybrid
        • Eligible/ Ineligible Transactions
      • Improvements, Alterations and Repairs
        • Form 1004D
      • Review of the Appraisal Report
        • Appraisal Report Analysis
      • Subject Section of the Appraisal Report
        • Contract Section
      • Neighborhood Section of the Appraisal Report
        • Neighborhood Analysis
      • Site Section of the Appraisal Report
        • Site Analysis
        • Subject Property Zoning
        • Highest and Best Use
        • Adjoining Properties
        • Site Utilities
        • Off-Site Improvements
        • Community-Owned or Privately Maintained Streets
        • Special Flood Hazard Areas
      • Improvements Section of the Appraisal Report
        • Conformity of Improvements to Neighborhood
        • Unique Housing Types
        • Actual and Effective Ages
        • Remaining Economic Life
        • Energy Efficient Improvements
        • Layout and Floor Plans
        • Gross Living Area
        • Gross Building Area
        • Accessory Dwelling Units
        • Additions without Permits
        • Properties with Outbuildings
      • Property Condition and Quality of Construction
        • Property Condition
        • Property Condition Ratings
        • Identifying Property Condition
        • Definitions of Not Updated, Updated, and Remodeled
        • Appraisals Completed “As Is”
        • Quality of Construction Rating
        • Identifying Quality of Construction
        • Physical Deficiencies That Affect Safety, Soundness, or Structural Integrity of the Subject Property
        • Infestation, Dampness, or Settlement
      • Sales Comparison Approach Section of the Appraisal
        • Data and Verification Sources of Comparable Sales
        • Prior Sales History of the Subject and Comparable Sales
      • Comparable Sales
        • Minimum Number of Comparable Sales
        • Age of the Comparable Sales
        • Additional Requirements for New (or Recently Converted) Condos, Subdivisions, or PUDS
        • Rural Properties
        • Use of Foreclosures and Short Sales
      • Adjustments to Comparable Sales
        • Sales or Financing Concessions
        • Date of Sale and Time Adjustments
        • Appraiser’s Comments and Indicated Value in the Sales Comparison Approach
      • Cost and Income Approach to Value
        • Income Approach to Value
      • Valuation Analysis and Reconciliation
        • Reconciliation
      • Condo Appraisal Requirements
      • Leasehold Appraisal Requirements
        • Appraisal Requirements for Leasehold Interests
        • Comparable Selection Requirements for Leasehold Interests
      • Mixed Use Appraisal Requirements
        • Appraisal Requirements for Mixed-Use Properties
      • Environmental Hazards Appraisal Requirements
        • Appraisal Requirements
        • Underwriter Requirements
    • Project Standards
      • General Information on Project Standards
        • Project Documentation
        • Condominium Project Questionnaire
        • Project Types
        • Project Review Methods
        • Waiver of Project Review
        • Requirements Applicable to All Properties in a Condo or PUD Project
        • Delivery Requirements
        • Expiration for Project Reviews
      • Ineligible Projects
        • List of Ineligible Project Characteristics
        • Projects that Operate as Hotels or Motels
        • Projects Subject to Split Ownership Arrangements
        • Projects that Contain Multi-Dwelling Unit Condos
        • Projects with Property that is not Real Estate
        • Projects that Operate as a Continuing Care Community or Facility
        • Non-Incidental Business Arrangements
        • Commercial Space and Mixed-Use Allocation
        • Recreational Leases and Mandatory Memberships
        • Live-Work Projects
        • Litigation or Pre-litigation Activity
        • Single-Entity Ownership
      • Environmental Hazard Assessment
        • Types of Environmental Hazard Assessments
        • Phase I Environmental Hazard Assessment
        • Phase II Environmental Hazard Assessment Description
          • Who Should Complete the Phase II Environmental Hazard Assessment
          • Phase II Environmental Hazard Assessment Report Forms and Requirements
          • Kinds of Testing or Sampling Under Phase II Environmental Hazard Assessments
        • Results of an Environmental Hazard Assessment
      • Limited Review
        • Transactions Eligible for a Limited Review
        • Limited Review Eligibility Requirements
      • Full Review
        • Unit and Project Types Eligible for Full Review
        • Full Review Eligibility Requirements
        • Replacement Reserve Studies
      • Additional Requirements for New or Newly Converted Projects
        • Condo Project Legal Document Review Requirements for Units in New or Newly Converted Projects
      • Other Project Review Approvals
        • Project Requirements
      • Projects with Special Considerations
      • Eligibility Requirements for Properties in a PUD
        • Eligibility Requirements for Units in PUD Projects
  • 🌠Unique Eligibility and Underwriting Considerations
    • Property Specific Considerations
  • 👨‍🏫Insurance
    • Title Insurance
      • Title Insurer Requirements
        • Insurer Covered by Reinsurance
        • General Title Insurance Requirements
          • Terms of Coverage
          • Effective Date of Coverage
          • Amount of Coverage
          • Other Requirements
        • Title Exceptions and Impediments
          • Minor Impediments to Title for Homium Loans
          • Title Impediment
    • Property and Flood Insurance
      • General Property Insurance Requirements for all Property Types
        • Property Insurer Rating Requirements
        • Exceptions to Insurer Rating Requirements
        • Other Exceptions to Property Insurance Requirements
      • Property Insurance Requirements for 1-4 Family Properties
        • Determining the Required Coverage Amount
        • Deductible Requirements
      • Master Insurance Requirements for Properties in a Project
        • Determining if a Master Property Insurance Policy is Required
        • Coverage Requirements
        • Determining the Required Coverage Amount
        • Deductible Requirements
        • Special Coverage Requirements for Project Developments
        • Special Coverage Requirements for Condo Projects
        • Builder/Developer Property Insurance Policies
        • Policies Covering Multiple Projects
      • Individual Insurance Requirements for Properties in a Project
        • Determining if an Individual Property Insurance Policy on a Unit in a Project Development is Require
        • Coverage Requirements
        • Determining the Required Coverage Amount
        • Deductible Requirements
      • Additional Insurance Requirements
        • Optional Credit Life or Mortgage Loan Insurance
      • Flood Insurance Requirements for all Property Types
        • Determining if Flood Insurance is Required on Specific Structures
        • Community Eligibility
        • Acceptable Flood Insurance Policies
        • Requirements for One-to Four-Unit Properties
        • Requirements for Project Developments
        • Deductible Requirements
      • Evidence of Property Insurance
        • Certificates of Property Insurance
        • Master Property Insurance Policies for Project Developments
      • Mortgagee Clause, Named Insured and Notice of Cancellation Requirements
        • Named Insured for Property and Flood Insurance
        • Notice of Cancellation for Property Insurance
    • Liability and Fidelity/Crime Insurance Requirements for Properties in a Project
      • General Liability Insurance Requirements for Properties in a Project
        • Coverage Requirements
        • Determining the Required Coverage Amount
        • Named Insured
      • Fidelity/Crime Insurance Requirements for Properties in a Project
        • Coverage Requirements
        • Determining the Required Coverage Amount
        • Named Insured
  • 🧑‍⚖️Closing/Legal Document
    • General Information on Legal Documents
    • Notes
      • Notes for Shared Appreciation
      • Signature Requirements for Notes
        • Signature Requirements: Powers of Attorney and Guardianship
    • Riders and Addenda
      • Uniform Riders and Fannie Mae-Specific Riders to Security Instruments
    • Special Purpose Legal Documents
      • Inter Vivos Revocable Trust Documentation and Signature Requirements
        • Signature Requirements When the Borrower is Individual and Inter Vivos Revocable Trust is Mortgagor
        • Trustee Exclusion from Personal Liability
        • Defining the Responsible Borrower in an Inter Vivos Revocable Trust
        • Requirements for Revocable Trust Riders
      • Requirements for Use of Power of Attorney
        • General Exception to Power of Attorney Requirements
        • Eligibility Requirements for Using a Power of Attorney
      • MERS Requirements
        • Requirements for the Use of MERS in Specified Geographic Areas
        • Use of the MIN
    • Security Instruments
      • Security Instruments for Shared Appreciation
        • Standard Homium Shared Appreciation Mortgage Security Instruments
      • Signature Requirements for Security Instruments
        • Signature Requirements: Powers of Attorney and Guardianship
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On this page
  1. Underwriting Borrowers
  2. Credit Assessment
  3. Requirements for Credit Reports

Assessing Borrower Credit Management Skills

The borrower’s credit management skills can be assessed by analyzing repayment patterns, credit utilization, and level of experience in using credit.

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Last updated 1 year ago

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