Loans may be underwritten through an automated underwriting System (DU or LP) – Rural Development Loans (GUS). Source of funds should be Non-Seller funded Non-Profit (not a government agency)
Automated Underwriting
| Product Type | Property Type | Minimum FICO | Maximum DTI DU, LPA, GUS | Required Reserves |
|---|---|---|---|---|
| FHA | 1-2 Units Condos/Townhomes | 640 | 45% | As determined by DU, LPA, GUS |
| FHA | 1-2 Units Condos/Townhomes | 680 | 45.01 - 50% | As determined by DU, LPA, GUS |
| VA USDA/RD | 1-2 Units Condos/Townhomes | 640 | 45% | As determined by DU, LPA or GUS |
Manual Underwriting Guidelines
Loans may only be manually underwritten for erroneous, inaccurate, or insufficient credit. Loans must comply with the requirements of the FHA, VA, or USDA/RD guidelines per the selected product. This includes but is not limited to the following requirements:
- EXCEPTION: FHA Loans
- If the HFA, VA, or USDA/RD require more in reserves than listed in the LTV / DTI / FICO tables below; the greater number of months must be documented.
| Product Type | Property Type | Minimum FICO | Maximum Ratios - Housing | Maximum Ratios - Total Debt | Minimum Required Reserves |
|---|---|---|---|---|---|
| FHA | NOT ALLOWED | ||||
| USDA | 1-2 Units Condos/Townhomes | 640 | 29% | 41% | 2 |
| VA | 1-2 Units Condos/Townhomes | 640 | N/A | 41% | 2 |
| HUD-184 | 1 unit | 660 | 31% | 43% | Per Guidelines |