New Penn Financial is committed to helping our U.S. military service members achieve their dream of homeownership.
VA Eligibility Guidance:
A full review of the borrower's credit profile will be completed. Borrowers with limited depth of credit or with layered risk characteristics must be reviewed for strong compensating factors. Refer/Eligible decisions will be considered for manual underwriting with a FICO ≥ 640 with a DTI less than 45% score provided sufficient compensating factors exist and all VA guidelines are met.
Non SMS-SMS VA IRRRL Eligibility Guidance:
^FICO 660 or Greater: LTV will be based off of the original loan balance. FICO less than 660: LTV will be based on a Full 1004.
The monthly mortgage history can consist of current and prior mortgage ratings over the most recent time period. Borrowers not meeting the mortgage history requirement may be eligible so long as the required six (6) months of loan payments on the loan being refinanced and the first payment due date of the refinance loan occurs no earlier than 210 days after the first payment due date of the loan being refinanced as measured from the previous loan note date to the new loan note date. A 0x30 mortgage history is required for the life of the loan.
Seasoning and recoupment requirements are as follows:
• Loans with greater than 6 months seasoning (6 payments made on the loan) and recoupment within 36 months are treated as Safe Harbor.
• Loans with 6 months seasoning (6 payments made on the loan) and recoupment >36 months but less than 60 months are premitted with a reduction in rate to the borrower of 50 bp and the transaction meeting all other requirements of the Net Tangible Benefit test and must be coded in the system as Rebuttable Presumption.
Follow VA for SMS-SMS IRRRL. See the VA IRRRL Guidelines in the full Product Profile for additional information.