HFA Lending Guide

HFA Lending Guide

{ Your comprehensive source for the Housing Finance Agency Lending Guide }

Credit Policy Summary

FHA

FHA loan products are required to be originated in accordance with FHA 4000.1 guidelines along with the following TMS requirements:
  • At least one borrower on the loan must have a reporting credit score of 620 or greater
  • Loan amount should be greater than or equal to $50,000
    • For Single Wide Manufactured homes, the minimum loan amount is $75,000
  • All loans must have a 30-year fixed term
  • Interest rate buydowns are not acceptable
  • 2-4 units, Manufactured Homes and Co-Ops are not eligible
  • Manual underwriting is not allowed
  • Third party VOE in lieu of paystubs are not allowed
  • IRS tax transcripts are required when qualifying with any of the following: 1) self-employed income; 2) commission income greater than 25% of the borrower’s total earnings; 3) rental income documented on schedule E; 4) employed by a family-owned business; 5) fixed income when the 1040s are used in lieu of alternative documentation.

Conventional (Fannie Mae)

Conventional (Fannie Mae) loan products are required to be originated in accordance with DU and FNMA requirements in the Selling Guide, along with the following TMS requirements:
  • At least one borrower on the loan must have reporting credit score from two credit bureaus
  • Minimum determining FICO of 620 or greater is required
  • Loan amount should be greater than or equal to $50,000
    • For Single Wide Manufactured homes, the minimum loan amount is $75,000
  • All loans must have a 30-year fixed term
  • Interest rate buydowns are not acceptable
  • 2-4 units, Manufactured Homes and Co-Ops are not eligible
  • Manual underwriting is not allowed
  • Third party VOE in lieu of paystubs are not allowed
  • IRS tax transcripts are required when qualifying with any of the following: 1) self-employed income; 2) commission income greater than 25% of the borrower’s total earnings; 3) rental income documented on schedule E; 4) employed by a family-owned business; 5) fixed income when the 1040s are used in lieu of alternative documentation.

Conventional (Freddie Mac)

Conventional (Freddie Mac) loan products are required to be originated in accordance with LPA and Freddie Mac Seller/Servicer Guide, along with the following TMS requirements:
  • At least one borrower on the loan must have reporting credit score from two credit bureaus
  • Minimum determining FICO of 620 or greater is required
  • Loan amount should be greater than or equal to $50,000
    • For Single Wide Manufactured homes, the minimum loan amount is $75,000
  • All loans must have a 30-year fixed term
  • HomeOne, Open Access, and Affordable Housing loans are not acceptable
  • 2-4 units, Manufactured Homes and Co-Ops are not eligible
  • Interest rate buydowns are not acceptable
  • Manual underwriting is not allowed
  • Third party VOE in lieu of paystubs are not allowed
  • IRS tax transcripts are required when qualifying with any of the following: 1) self-employed income; 2) commission income greater than 25% of the borrower’s total earnings; 3) rental income documented on schedule E; 4) employed by a family-owned business; 5) fixed income when the 1040s are used in lieu of alternative documentation.

VA

VA loan products are required to be originated in accordance with VA guidelines in the VA Lender Handbook, along with the following TMS requirements:
  • At least one borrower on the loan must have a reporting credit score of 620 or greater
  • Loan amount should be greater than or equal to $50,000
    • For Single Wide Manufactured homes, the minimum loan amount is $75,000
  • All loans must have a 30-year fixed term
  • 2-4 units, Manufactured Homes and Co-Ops are not eligible
  • Interest rate buydowns are not acceptable
  • Third party VOE in lieu of paystubs are not allowed
  • IRS tax transcripts are required when qualifying with any of the following: 1) self-employed income; 2) commission income greater than 25% of the borrower’s total earnings; 3) rental income documented on schedule E; 4) employed by a family-owned business; 5) fixed income when the 1040s are used in lieu of alternative documentation.

USDA

USDA loan products are required to be originated in accordance with USDA guidelines in the Lender Handbook along with the following TMS requirements:
  • At least one borrower on the loan must have a reporting credit score of 640 or greater
  • Loan amount should be greater than or equal to $50,000
    • For Single Wide Manufactured homes, the minimum loan amount is $75,000
  • All loans must have a 30-year fixed term
  • Interest rate buydowns are not acceptable
  • 2-4 units, Manufactured Homes and Co-Ops are not eligible
  • Third party VOE in lieu of paystubs are not allowed
  • IRS tax transcripts are required on all loans

Housing Finance Agency Programs

Port of Greater Cincinnati Development Authority program can be used for purchase transactions. Visit Greater Cincinnati RDA to find out about borrower eligibility requirements and follow FHA, VA, USDA, or Freddie Mac Home Possible requirements along with TMS restrictions stated above.