February 9, 2017
REMN Wholesale is pleased to announce guideline enhancements to our government loan programs (FHA, USDA, and VA) as outlined below. These enhancements are effective immediately and may be applied to new submissions and loans currently in the pipeline.
FHA, USDA, and VA
- Borrowers with a qualifying credit score of 620-639:
- Requirement for specific documented housing history to be eligible up to the maximum LTV has been removed on all states. (Previously standard risk states without documented housing history were subject to maximum 90% LTV)
- Maximum DTI for borrowers in low risk states has been increased from 45% to 50%. (USDA will require a credit waiver and supporting documentation)
- Borrowers with a qualifying credit score of 640-659:
- Maximum DTI of 50.00% has been eliminated.
- There are no longer any specific credit score overlays for borrowers with ≥ 640.
As a reminder, any loan that has been manually downgraded will be subject to the applicable agency’s manual underwriting documentation and DTI guidelines.
The following enhancements apply to the VA program:
- The overlay for additional residual income for VA cash- out loans with > 90% LTV has been eliminated. Standard VA residual income requirements apply.
The guidelines will be updated with this information and posted on the REMN Wholesale website at www.REMNWholesale.com in the near future.
If you have any questions, please contact your Account Executive