Announcement 2026-002 FHA Overlay Updates

FHA Overlay Updates

Newrez LLC "Newrez" Approved Correspondent Clients; Great News! Effective for new locks on or after January 2, 2026, some of the FHA Newrez Overlays are being updated. See below updates:

• FHA 203(h) Purchase Products

  • Total Accept/Approve -Minimum Credit Score update from 640 to 580, DTI per AUS

  • Refer and Manual Underwrite -Minimum Credit Score update from 600 to 580

    • Overlay has been removed for the DTI>45%: gift funds not permitted

• FHA Standard Refinance Products

  • Manual Underwrite- Minimum Credit Score update from 600 to 580

See the Product Summaries and Overlay Matrix for full details.