Guideline Enhancements

HomeBridge is pleased to announce the following enhancements to our guidelines:

Agency Conforming and High Balance Programs

  • The minimum credit score requirement is now per DU Findings (currently a minimum 640 is required) with the exception of 97% LTV which continues to require a minimum 680 credit score.
    As a reminder, loans with > 80% LTV require mortgage insurance which may have specific credit score and guideline requirements. The more restrictive of HomeBridge or the MI company requirements apply.

Agency Conforming/High Balance, DU Refi Plus, FHA and VA Programs

Loans that were previously restructured/modified are now eligible. Requirements vary by program as follows:

  • Agency Conforming and High Balance:
    • Refinance Transactions: The subsequent refinance of a restructured/modified loan is eligible when the borrower(s) have made a minimum of 24 consecutive months of on-time payments on the restructured/modified loan prior to the closing of the refinance transaction (i.e. 24 consecutive months of on-time payments after the loan was restructured/modified).
    • Purchase Transactions: Borrowers with a previously restructured/modified subject loan are eligible after a minimum of 12 consecutive months of on-time payments have been made on the restructured/modified loan (payments made afterthe loan was restructured/modified).
  • DU Refi Plus
    • Eligible if the loan meets all standard DU Refi Plus program requirements.
  • FHA Program
    • FHA Short payoff guidelines apply to modified/restructured loans. Borrowers are eligible for an FHA rate/term refinance when the existing Note holder(s) will write off the amount of the indebtedness that cannot be refinanced in the new FHA insured mortgage subject to the following:
      • The borrower is current on their existing mortgage, and
      • There is insufficient equity in the home based on its current appraised value, and/or
      • The borrower experienced a reduction in income and does not have the capacity to repay the existing mortgage on the property.
    • In cases where the existing Note holder(s) is reluctant, or not willing, to write down the indebtedness, a new subordinate lien may be obtained for the amount of which the payoff is short. If payments on the new subordinate financing are required, they must be included in the qualifying ratios unless the payment has been deferred for a minimum of 36 months.
  • VA Program
    • Loans with an “Approve/Eligible finding must be downgraded to a manual underwrite.
    • A minimum of 12 months of 0x30 payments have been made on the restructured/modified loan
    • If mortgage was in default at the time of restructure/modification is not eligible.
  • FHA Program
    • The Gift Funds topic was updated to allow a copy of the wire transfer as documentation for funds provided at closing via wire transfer.
  • VA Program
    • Borrowers with a CAIVRS claim number due to a short sale are eligible for a VA loan if a minimum of two (2) years has passed since the short sale and the borrower otherwise qualifies for the VA loan.
  • USDA Pilot Refinance Program
    • Updated to reflect USDA recent policy change. The allowable origination fee is now the lower of 2% of the loan amount or $3,000 (previously limited to 1% of the loan amount).

Additionally, various miscellaneous topics were updated to provide further guidance. All updates are highlighted in yellow on the program guidelines.

The enhanced guidelines apply to both new submissions and existing pipeline.

The updated guidelines have been posted on the HomeBridge website at www.homebridgewholesale.com.

The HomeBridge rate sheet has also been updated with lower credit score buckets.

If you have any questions, please contact your Account Executive.