Lenders: New Underwriting Requirements

Lenders: New Underwriting Requirements

Current rates

Program
Name
Conventional
Loan Rate
Government
Loan Rate
Military Home N/A 5.375%*
First Home Targeted 6.000%* 5.375%*
First Home 6.250%* 5.625%*
Homebuyer Assistance (HBA) 6.500%* - 1st loan
1.000%* - 2nd loan
5.875%* - 1st loan
1.000%* - 2nd loan
Welcome Home++ 7.000%* 6.375%*
Welcome Home Assistance (WHA)++ 7.250%* - 1st loan
1.000%* - 2nd loan
6.625%* - 1st loan
1.000%* - 2nd loan

Last changed 06/13/2024 at 9:00 a.m
*This is not an advertisement for credit as defined in Reg.Z; contact a participating NIFA lender for Annual Percentage Rate (APR) information. Rates are subject to change without prior notice. 

++An origination fee up to 0.50% of the loan amount may be charged by Lender.

Home / About Homebuyer Lender Real Estate Agent

Sep 05, 2023

Lenders: New Underwriting Requirements

TO: Participating Lenders
FROM: NIFA Homeownership Team
DATE: September 6, 2023
SUBJECT: Update #23-4, Revised Underwriting Requirements

Announcing: revised underwriting requirements for the First Home and Welcome Home Programs. The new requirements are effective for all loan reservations dated on and after Wednesday, September 6, 2023.

Co-Signers – Conventional Loans Only

First Home Program – For conventional loans only, NIFA will require lenders to include the income of a non-occupying co-signer as household income for program eligibility. Our compliance team will use the final co-signer income from the AUS findings/feedback certificate to include as household income. Please note we will continue to require a written VOE and current paystubs for an occupying borrower, co-borrower, and non-borrowing spouse.
 
Welcome Home Program – NIFA currently requires lenders to include the income of a non-occupying co-signer as household income for program eligibility. There is no change for Welcome Home.

Maximum Debt-to-Income (DTI) Ratio – Conventional Loans Only

The maximum 50% DTI now includes conventional loans with a 640 minimum FICO and AUS accept/approve. The previous minimum FICO was 660 with a 50% maximum DTI. This applies to the First Home and Welcome Home Programs.

Homebuyer Education Providers

The approved list of homebuyer education classes has been updated and includes two new providers - 1) Southwest Nebraska Community Betterment Corporation and 2) Finally! Home online provider.
 
You can find updated Lender Manuals for both programs in Lender Online and on NIFA’s website.
 
Please reach out to the Homeownership Team with any questions.

Thanks for your partnership!