weekly underwriting updates to sales 11.4.2019
Updated: 12/02/2019
Article #: 187
FHA
No updates at this time
FNMA/FHLMC
No updates at this time
USDA
USDA Rural Housing student loan debt-to-income modification to Chapter 11.2 of HB-1-3555.
Effective Date
Effective immediately for all USDA Rural Housing Loans in the pipeline and all new Loan applications.
Student Loans
Sellers must include student loan payments as follows:
- Fixed payment loans
- A permanent amortized, fixed payment may be used in the debt ratio when the Seller retains documentation to verify the payment is fixed, the interest rate is fixed, and the repayment term is fixed.
- Non-fixed payment loans
- Payments for deferred loans, Income-Based Repayment (IBR,) Graduated, Adjustable, or other types of repayment agreements which are not fixed cannot be used in the total debt ratio calculation.
- The higher of one-half percent (0.50%) of the loan balance, or the actual payment reflected on the credit report, must be used as the monthly payment in the Underwriter’s decision.
- No additional documentation is required.
VA
No updates at this time
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