What are the underwriting, credit score, and DTI guidelines?

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 TypeProperty TypeMinimum FICOMaximum DTI
DU, LPA, GUS
Required Reserves
FHA1-2 Units
Condos/Townhomes
64045%As determined by DU, LPA, GUS
FHA1-2 Units
Condos/Townhomes
68045.01 - 50%As determined by DU, LPA, GUS
FHAManufactured Homes68045%As determined by DU, LPA, GUS
VA
USDA/RD
1-2 Units
Condos/Townhomes
64045%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 or Manufactured 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 TypeProperty TypeMinimum FICOMaximum Ratios - HousingMaximum Ratios - Total DebtMinimum Required Reserves
FHANOT ALLOWED
USDA1-2 Units
Condos/Townhomes
64029%41%2
VA1-2 Units
Condos/Townhomes
640N/A41%2

Leave a Reply

Your email address will not be published.