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FHA Update

New Penn Financial is pleased to announce the following changes to our FHA product profile.

New Penn Financial is pleased to announce the following changes to our FHA product profile.

All changes are effective immediately. Refer to the updated product profile posted to the Loan Programs page for specific details.

3.2 Occupancy

Removed requirements for occupying borrower’s ratio requirements greater than 31/43. Updated to reflect non-occupant not permitted on cash-out transactions.

3.7 Maximum # Financed Properties

Updated to reflect requirements to meet FHA Handbook 4000.1.

3.9 Multiple Mortgages to Same Borrower

Updated to reflect requirements to meet FHA Handbook 4000.1 and to refer to Section 3.8 when borrower has more than 1 FHA loan.

5.1 Income

Updated to waive W2 transcript requirement when borrower is wage earner and receives direct deposit. Paystub, W2’s and bank statement(s) verifying direct deposit from paystub may be used in lieu of W2 transcripts.

6.1 Credit

Removed credit depth requirement overlay.

6.2 Compensating Factors

Removed compensating factor requirements for FICO scores between 620 - 680

6.6 Qualifying Ratios

Removed compensating factor requirements for FICO scores between 620 - 680

8.4 Escrow Holdbacks

Updated maximum holdback amount to $10,000.