Delaware State Housing Authority Upcoming Program Enhancements

Transcription

1 Delaware State Housing Authority Upcoming Program Enhancements The information contained in this training deck is preliminary and will not be effective until the release of the announcement and publication of updated product matrices from Lakeview Loan Servicing.

2 FNMA HFA Preferred No MI The FNMA HFA Preferred product to include a 30 Year Fixed Rate No MI offering* One unit owner occupied properties only Up to 97/105% LTV/CLTV with a minimum FICO of 700 Up to 95/105% LTV/CLTV with a minimum FICO of 680 Home Buyer education is required if all borrowers are first-time homebuyers AUS messaging regarding MI requirements should be ignored The following loan attributes will not be eligible for the No MI option: Non-Borrowing Household Income Non-Occupant Cosigner/Co-Borrower Income Rural Properties (as determined by the appraisal report) Condominiums 2

3 Debt to Income Ratio Expansion* The maximum 45% DTI limit has been removed to allow AUS to determine eligibility. FNMA HFA Preferred VA USDA FHA o Manually underwritten loans (as permitted by the product profile) will continue to have the following restrictions Maximum 43% DTI Minimum 660 FICO 3

4 FNMA HFA Preferred Income/Employment/Asset Verification* The FNMA HFA Preferred product now allows for the use of Fannie Mae approved third party supplier/distributor reports for the purpose of verifying income, employment and assets. 4

5 Escrow Holdbacks* Lakeview Loan Servicing will allow escrow repair holdbacks for minor outstanding repairs or incomplete construction prior to closing.* Permitted on FNMA HFA Preferred, FHA, VA & USDA loan programs Limited 203k All repairs must be completed and escrow funds released prior to purchase by Lakeview. Enhancements to this requirement on the Limited 203k product are underway and are expected to be finalized by November Subject property must be habitable and safe for occupancy at the time of closing Originating lender/escrow company will be responsible for managing and disbursing escrow funds Originating lender must forward final completion documentation to Lakeview Outstanding escrow repairs must not impact Lakeview s ability to deliver/sell the loan to Fannie Mae or Ginnie Mae 5

6 Transcript Overlay Relief * Lakeview will no longer require W-2/1099 transcripts for W-2 wage earners or fixed income borrowers. Transcript relief permitted on FNMA HFA Preferred, FHA & VA loan programs USDA loan program not eligible for transcript relief Tax transcripts will still be required when tax returns are used to document qualifying income including by not limited to the examples listed below. The number of years for which transcripts must be provided will be determined based on AUS findings. Self-employment income Commission 25% Rental income Employment by family members Other income sources (i.e. dividend interest, capital gains, alimony) When a written VOE form 1005 is used as standalone income verification Lakeview Loan Servicing will continue to require The IRS Request for Transcript of Tax Return (IRS Form 4506-T) to be executed at closing on all loans. 6