WHEDA Home News - April 2008

Home Program Changes

Due to the continued underwriting changes published by our pool and primary mortgage insurers, the following underwriting guidelines are effective May 5, 2008:

Credit Scores

680 if LTV/CLTV is 95.01% - 97%
680 if New Construction

Nontraditional Credit

If alternative credit references are required, the maximum LTV/CLTV is 95%. LTVs greater than 90% will require the lender to send a duplicate loan package to Genworth for their review.
Four sources of nontraditional credit references with an acceptable 12-month payment history are required. One of the four references must be a Rent Verification. If the utility payments are included in the rent, then only three nontraditional references are required.

Private Mortgage Insurance Pricing

Standard Private Mortgage Insurance premiums may apply.

Refer to the Commitment Certificate for the correct premium rate upon loan approval.

Property Type.

Condominiums: 95% / 100% (LTV/CLTV)
2-4 unit properties are no longer eligible.
New manufactured homes are no longer eligible.
Rural Properties: 5 acres maximum
New Construction: Minimum 680 credit score

Declining Markets

Maximum LTV/CLTV 95%/100%.
LTV/CLTVs greater than 90%: A minimum credit score of 680 is required and the lender is to send a duplicate loan package to Genworth for their review.
Nontraditional credit references are not allowed.
New Construction is not allowed.
Condominiums: Maximum LTV/CLTV is 90%

Minimum Borrower Contribution

For all LTVs, the minimum borrower contribution is the lesser of $500 or 1% of the purchase price.

If you have any questions regarding the information in this e-mail, contact Pat Multerer at 800-334-6873 or via e-mail at pat.multerer@wheda.com.