Updates to our Dream Big product are effective immediately.
A summary of all changes is listed below. Refer to the New Penn Financial Dream Big product profile for all specific requirements.
2.1 Minimum Loan Amounts
- Updated minimum loan amount to $453,101
- Agency High Balance only eligible when:
- A documented price benefit to the borrower; or
- Refinance transactions paying off a seasoned non-purchase money second lien that meets the requirements of section 2.9 Rate & Term Refinances that would otherwise be rendered a cash-out refinance under Fannie Mae/Freddie Mac requirements; or
- Non-Warrantable condominiums
2.17 Maximum # of Financed Properties
Maximum number of financed properties has been increased to 6 when the subject property is a primary residence. The maximum remains 4 when the subject is a second home or investment property.
Added transferred appraisals as eligible with applicable requirements.
Updated to permit tax transcripts to be used for signature requirements of tax returns. Transcripts must match the unsigned tax returns and are not permitted in lieu of tax returns.
5.4 Self-Employed Borrowers
Updated requirements for profit and loss statements when required.
5.7 Eligible Income Sources – Retirement Income (401K/IRA)
Updated requirements for documenting retirement income from 401K/IRA distributions.
5.7 Eligible Income Sources – Social Security
Added allowance for 1099s to be provided in lieu of tax returns when social security income is not being grossed up.
6.6 Current Principal Residence Pending Sale
Added allowance for housing payment of current primary pending sale to be excluded with applicable requirements.
7.4 Acceptable Assets- Gifts
Updated to permit gifts when subordinate financing is present.
Updated reserve requirements when additional real estate is owned, or a current primary residence is pending sale or being retained:
- 2 months PITIA reserves based on each respective property when additional property owned
- 4 months of PITIA reserves when the borrower is retaining their current primary residence or converting to a second home or investment property (based on that residence PITIA)