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Conventional Updates - 10/29/18

Effective with new registrations and pipeline loans on Monday, October 29, 2018, New Penn Financial is making certain updates where applicable to our Conventional, HomeReady®, Home Possible®, LMI, DURP and LPOA guidelines as noted below.

Manufactured housing is now eligible with Texas 50(a)(6) loans

  • Applies to Conventional, DURP and LPOA products


Self-Employment: Documentation or evaluation is not required when a borrower or co-borrower is qualified using only income that is not derived from self-employment and self-employment is a secondary and separate source of income (or loss).

  • Applies to Conventional, HomeReady, Home Possible and LMI products

Condominium updates

  •  Two-to four-unit projects no longer require project review
    • Applies to Conventional, HomeReady, Home Possible and LMI products
  • Single entity ownership for projects with 21 or more units has been increased to 25% for LPA scored loans
    • Applies to Conventional, Conventional LMI, Home Possible and Home Possible LMI products

Credit inquiries within the past 90 days must be addressed by the borrower (previously 120 days)

  • Applies to Conventional, HomeReady, Home Possible, DURP, LPOA and LMI products

Reserves: Removed the requirement for reserves for two-to four-unit owner-occupied properties

  • Applies to Conventional and Conventional LMI products


High Balance ARMs: Updated High Balance ARMs to align with fixed products

  •  Applies to Conventional products

 

Please reference the Product Profiles page for full details of the changes outlined in this announcement.