NEW FHA OVERLAYS FOR 2-4 UNIT PROPERTIES
Due to the under-performance of FHA loans secured by 2-4 unit properties in certain States, we have concluded that additional underwriting overlays are necessary. Effective for all new submissions beginning Thursday, April 12, the following new overlays apply for 2-4 unit properties in Illinois, and 3-4 unit properties in New Jersey and New York:
(1) Maximum DTI 45.00%; and
(2) If LTV >90%, then no gifts or grants are permitted.
If you have any questions, please contact your AE.
