New guidelines for FHA loans with scores between 620-639


90% LTV:

If no gift/grant, then no further restrictions

If gift/grant, then either 31/43 max OR 12 months canceled rent checks

96.5% LTV:

Choose any three of the four following restrictions:

(1)    12 months canceled rent checks 0x30

(2)    Down payment all borrower funds (no gift, no grant)

(3)    No “thin credit”

(4)    31/43 max

No gifts of equity or manual underwriting at any LTV


Rate and Term:  90% LTV

Cash-Out:  75% LTV

0x30 last 24 months

if less than 24 month history, must have at least 12 month history (no paying “ahead” to meet guideline)

36/43 ratios OR 6 months PITI reserves required

New FHA score adjusters

Score Old Adjuster New Adjuster
680-699 0.250 0.000
660-679 0.250 0.250
640-659 1.000 0.500
620-639 1.500 1.000

If you have any questions, please contact your AE.

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