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.

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