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LendingSpace Updates

Effective immediately with new LendingSpace Best Efforts and Mandatory locks, the below changes have been made.

Lenders are now able to deliver loans originated in the State of New York, with the following overlays:
  • Co-op property types are ineligible
  • Consolidation Extension and Modification Agreement (CEMA) loans are ineligible
In addition, the following guideline changes have been made1:

FHA
  • Minimum FICO for all non-streamline FHA loans secured by a 1-unit property has been reduced to 600
  • Minimum FICO for all streamline FHA loans secured by a 1-unit property has been reduced to 580
  • The minimum loan amount requirement of $50,000 has been removed
  • The maximum DTI cap of 38% for FICOs between 600-619 has been removed
  • The FHA streamline maximum loan amount caps have been increased to match the new FHFA conforming loan limits
  • FHA Streamline products will now allow 2-4 units
  • The FHA Low FICO Program (4010) has been retired
VA
  • Minimum FICO for all standard cash-out VA loans secured by a 1-unit property has been reduced to 620
  • Minimum FICO for all VA IRRRL loans secured by a 1-unit property has been reduced to 600
  • The minimum loan amount requirement of $50,000 has been removed
  • Minimum FICO for purchase loan amounts exceeding $1,000,000 has been reduced to 680
  • Maximum subordinate financing amount has been increased to match the new FHFA conforming loan limits
  • VA High Balance products will now allow 2-4 unit, including for cash-out transactions
  • VA loan amounts over $1,500,000 now allowed for non-purchase transactions
  • 41% DTI cap for loan amounts exceeding $1,000,000 has been removed
  • 90% LTV cap when cash back exceeds $5,000 has been removed
Conventional
  • The minimum loan amount requirement has been reduced to $20,000
The Conventional Overlay and Government Overlay documents have been updated to reflect these changes.

1. Please refer to conventional and government overlay documents for additional FICO, LTV and credit restrictions based on factors such as number of units, loan purpose type, occupancy type, etc.

If you have any questions, please contact your sales relationship manager.


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