# What percentage of 401 K can be used for reserves Fannie Mae?

When used for reserves, 100% of the value of the assets may be considered, and liquidation is not required. For additional information, see B3-4.3-01,Stocks, Stock Options, Bonds, and Mutual Funds.

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## Subsequently, can installment debt with less than 10 months remaining be excluded?

More often than not, an installment loan (i.e. car loan or student loan) can be excluded during the approval process so long as you only have 10 payment or less to make. While some lenders have their own restrictions, most conventional and unconventional mortgage products allow you to exclude this debt.

In this manner, does 401k count as cash reserves? Because a 401(k) account is your personal investment, most lenders will allow you to use these assets as proof of reserves.

## Moreover, does FNMA require collections to be paid off?

For two- to four-unit owner-occupied and second home properties, collections and non-mortgage charge-offs totaling more than \$5,000 must be paid in full prior to or at closing.

## How are open 30 day charge accounts handled?

A 30-day account is a credit arrangement requiring the applicant to pay off the full outstanding balance on the account every month. The lender may utilize the credit report to document the applicant has paid the outstanding balance for the previous 12 months.

## How are VA loans calculated for student loans?

Calculate each loan at a rate of 5 percent of the outstanding balance divided by 12 months (example: \$25,000 student loan balance x 5% = \$1,250 divided by 12 months = \$104.17 per month is the monthly payment for debt ratio purposes).

## How does Fannie Mae calculate reserves?

Reserves are measured by the number of months of the qualifying payment amount for the subject mortgage (based on PITIA) that a borrower could pay using his or her financial assets.

30 days

## In what circumstance can an installment debt be excluded from a borrower’s obligations?

2. For installment debts being omitted from the debt payment-to-income ratio due to 10 or fewer months of payments remaining, the information on the credit report or other Mortgage file documentation must show that there are 10 or fewer months of payments remaining.

## What are the qualifying debt ratios for a VA loan?

The debt-to-income ratio determines if you can qualify for VA loans. The acceptable debt-to-income ratio for a VA loan is 41%. Generally, debt-to-income ratio refers to the percentage of your gross monthly income that goes towards debts. In fact, it is the ratio of your monthly debt obligations to gross monthly income.

## What is FNMA and Fhlmc?

These are Government backed subsidized loans. The meaning is FNMA = Fannie Mae and FHLMC = Freddie Mac. … We can help you apply with either agency, depending on your individual loan criteria.

## Which of the following debts could possibly be forgiven under?

Answer Expert Verified So the answer is A. Credit Card. A credit card debt can be forgiven under chapter 7 because it is the main reason why people file for bankruptcy just to discharge their credit card balance.