Government Loan FICO Enhancements

Announcement 2018 : 03

REMN Wholesale is pleased to announce enhancements to FHA, VA and USDA program overlays as detailed below.

Credit Qualifying Loans with a FICO score of 600 or greater
* ALL restrictions with a 600 or greater FICO score have been removed; standard REMN guidelines apply
– The previous requirement of borrower’s own funds and two (2) months bank statements dated prior to application date has been removed.
– Gifts, grants, and community second liens are now eligible.

Credit Qualifying Loans FICO score 580-599
*Loans with a FICO score 580-599 are restricted to a maximum DTI of 31% / 43% (both AUS and manually underwritten loans)
– The previous requirement of borrower’s own funds and assets dated prior to application date has been removed.
– The previous restriction limiting LTV to 90% on manually underwritten loans has been removed.
– The previous requirement for documented housing history has been removed.
– The previous requirement for residual income qualification has been removed.
– Gifts, grants, and community second liens are now eligible.
– Maximum financing per agency is now eligible.
– Standard agency housing history and income requirements apply.

Non-Credit Qualifying Loans (VA IRRRL & FHA Streamlines)
*ALL REMN restrictions on non-credit qualifying loans with a fico score of 580 or greater have been removed.
– The previous requirement for loans with a fico score of 580-619 to have a full 12-month payment history has been removed.
– Standard agency and GNMA requirements apply (6 consecutive payments made and posted by the servicer, and applicable 210-day seasoning on loan being paid off).

These enhancements are effective on the existing pipeline and new loan submissions. Updates will be incorporated in the February government FICO overlay chart and applicable product descriptions but can be applied immediately.

Please contact your Account Executive with any questions.