HomeBridge is pleased to announce the removal of many of the overlays applied to the FHA/FHA Streamline and VA/VA IRRRL programs when the credit score is < 620. These improvements may be applied to loans currently in the pipeline and new submissions
FHA and VA Programs Credit Score ≥ 600 (including Credit-Qualifying and Non-Credit Qualifying Streamlines and IRRRLs)
All overlays have been removed
- Gift funds/DPA funds now eligible (the borrower own funds requirement/2 months’ bank statements to document removed)
- Housing/mortgage history now per FHA/VA (12 month mortgage/housing history removed) As a reminder, Ginnie Mae seasoning requirements apply
- DTI per FHA/VA (maximum 31%/43% DTI restriction removed)
FHA and VA Programs Credit Score 580-599 (including Credit-Qualifying and Non-Credit Qualifying Streamlines and IRRRLs)
All overlays have been removed with the exception of the DTI limitation of 31%/43% for credit qualifying transactions; maximum 31%/43% DTI continues to apply.
- Maximum LTV per FHA/VA (90% LTV/CLTV restriction for purchase and rate/term refis removed)
- Housing/mortgage history per FHA/VA (12 month mortgage/housing removed) As a reminder, Ginnie Mae seasoning requirements apply
- Gift funds/DPA funds now eligible (the borrower own funds requirement/2 months’ bank statements to document removed)
- DTI per FHA/VA requirements (DTI restriction of 31%/43% removed; reminder – per FHA manual underwrites are limited to 31%/43% unless applicable HUD compensating factors are met)
- All payment shock requirements removed (maximum 100% payment shock and the additional requirements if the payment shock was 50% to 100% removed).
- FHA transactions no longer required to meet VA’s standard residual income requirement
HomeBridge overlays for credit scores of 550-579 continue to apply on all FHA and VA programs.
The HomeBridge FHA/FHA Streamline and VA/VA IRRRL program guidelines have been updated and posted on the HomeBridge website at www.HomeBridgeWholesale.com
If you have any questions, please contact your Account Executive.
