HomeBridge has made the following enhancements and updates to the FHA and FHA Streamline programs.
620-639 Credit Score Enhancements/Updates
• Borrowers with a credit score of 620-639 are now eligible for conforming and high balance loan amounts in all states.
• Four (4) months reserves no longer required. Reserves requirements are now per FHA in all states as follows:
– 1-2 unit properties: reserves not required
– 3-4 units: 3 months PITI reserves required
– Borrower(s) with non-traditional/insufficient credit 2 months PITI reserves required (cannot be from gift funds).
• Gift funds now permitted for down payment and closing costs (currently gifts not eligible until borrower meets minimum down payment requirement from own funds).
NOTE: Certain states gift funds will continue to be ineligible; refer to State Specific Requirements topic on page 2.
• Maximum LTV eligible with or without documented housing (currently maximum 95% LTV with documented housing and maximum 90% LTV without).
NOTE: Certain states will continue to require max 90% LTV without documented housing; refer to State Specific Requirements topic on page 2.
• Derogatory credit in previous 24 months is eligible subject to FHA requirements detailed in the Derogatory Credit topic of HomeBridge’s FHA program guidelines (currently derogatory credit not allowed in previous 24 months).
NOTE: Certain states derogatory credit will continue to require a 24 month waiting period; refer to State Specific Requirements topic on page 2.
• DPA/grant program funds are now eligible for down payment, closing costs. The DPA/grant program must be currently approved with HomeBridge. A list of HomeBridge approved programs has been posted on the HomeBridge website under “Working with HomeBridge