Updated May 7, 2020
The following changes are effective with all new locks or registrations on or after May 7, 2020.
Conventional Conforming Agency Transactions
- A minimum 660 credit score is required for all transactions
- Cash-out refinance transactions are not permitted
- Investment Property Transactions
- Rental income from the subject investment property cannot be used for loan qualification
- Three (3) months reserves are required in addition to standard reserve requirements per the product
- Short-term rental income from the borrower’s primary residence is no longer eligible
- Age of documents – income and asset documents must be within 60 days prior to the note date
VA Transactions
- Debt-to-income ratio greater than 45% requires an additional two (2) months reserves
- Maximum $1,000,000 loan amount
FHA, VA, and USDA Transactions
- The higher of 660 credit score or the product requirement is required for all transactions
- Maximum $1,000,000 loan amount
- Age of documents – income and asset documents must be within 60 days prior to the note date
Conventional Conforming, FHA, VA, and USDA Transactions
- When rental income from other real estate owned is being used to qualify, the following is required:
- Evidence of the most recent two (2) months receipt of rental income for each rental property owned, and
- Six (6) months’ reserves required for each rental property owned in addition to standard reserves required per product, and
- When rental income is being used to qualify when converting a primary residence to a second home or investment property, the following is required:
- Six (6) months’ reserves required for each rental property owned in addition to standard reserves required per product, and
- Evidence of proof of receipt of the security deposit and, if required by the lease, first month’s rent.
- Self-employed borrowers are required to provide a year-to-date profit and loss statement and balance sheet dated no more than 30 days prior to the note date
- The borrower(s) cannot have had any mortgage in forbearance in the past 30 days as of application date
Temporary Guidance Announcements
The product profiles will not be updated with the below temporary guidelines related to COVID-19 (with the exception of credit score and financing type updates). Refer to all previously issued announcements.
- Annc 2020-026 COVID-19 (3/25/20)
- Annc 2020-031 Suspension of Tax Transcripts (3/30/20)
- Annc 2020-038 FHA Loans Temporary Guidance COVID-19 (4/3/20)
- Annc 2020-039 USDA Loans Temporary Guidance COVID-19 (4/3/20)
- Annc 2020-040 VA Loans COVID-19 Temporary Guidance (4/3/20)
- Annc 2020-044 COVID-19 Additional Conforming Updates (4/9/20)
- Annc 2020-048 COVID-19 Conventional Updates – Property (4/17/20)
For additional information, below are links to Fannie Mae and Freddie Mac Frequently Asked Questions
As a reminder, NewRez is not adopting all flexibilities in the Fannie Mae and Freddie Mac announcements, therefore some guidelines in their announcements and FAQ may not apply.
Please reference the NewRez Product Profiles located in the Lending Library or on NewRezWholesale.com for the changes outlined in this announcement.