We are sending this Program Update as a correction to Program Update #20-12 dated April 3, 2020. The following changes are subject to FHA loans only:
- All FHA loans with credit scores of 640-659 must have 1-month reserves and all borrowers must be on their current job for a minimum of 6 months.
- Manual underwriting is not allowed on FHA loans only. This includes AUS downgraded loans and non-traditional credit loans.
The changes apply to FHA loan reservations processed in Lender Online on and after Monday, April 6, 2020. The changes do not apply to FHA loan reservations dated prior to April 6, 2020.
Please do not hesitate to let us know if you have any questions. We appreciate your partnership!