FHA and VA Overlay Removals
NewRez LLC "NewRez" Approved Correspondent Clients: please note, NewRez is pleased to announce the removal of overlays including the reduction of credit scores and allowing manual underwriting. The below highlights in bold are the changes being made to the FHA and VA products and will be effective for all loans in pipeline and new applications.
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FHA Transactions
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New Guideline
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Old Guideline
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TOTAL Approve/Accept
Manual Underwrite
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TOTAL Approve/Accept only
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Purchase
- TOTAL Approve/Accept and Manual Underwrite
- 580 credit score
- 640 credit score manufactured home
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Purchase
- TOTAL Approve/Accept
- 620 credit score
- 640 credit score: manufactured home
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Rate & Term and Simple Refi
- TOTAL Approve/Accept
- 580 credit score
- 640 credit score: manufactured home
- Manual Underwrite
- 620 credit score
- 640 credit score: manufactured home
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Rate & Term and Simple Refi
- TOTAL Approve/Accept
- 620 credit score
- 640 credit score: manufactured home
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Cash-out Refi
- TOTAL Approve/Accept
- 580 credit score
- 640 credit score: manufactured home
- Manual Underwrite
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Cash-out Refi
- TOTAL Approve/Accept
- 640 credit score
- 640 credit score: manufactured home
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VA Transactions
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New Guideline
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Old Guideline
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AUS Approve/Accept
Manual Underwrite (not permitted for manufactured home)
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AUS Approve/Accept only
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Purchase
- AUS Approve and Manual Underwrite
- 100% LTV to $1,000,000 with 580 credit score
- 100% LTV to $1,500,000 with 700 credit score
- Manufactured home: 100% LTV to $1,000,000 with 580 credit score
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Purchase
- AUS Approve
- 100% LTV to $1,000,000 with 620 credit score
- Manufactured home: 100% LTV to $548,250 with 620 credit score
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Cash-out Refi
- AUS Approve and Manual Underwrite
- 90% LTV to $1,500,000 with 700 credit score
- 90% LTV to $1,000,000 with 580 credit score
- Manufactured home: 90% LTV to $1,000,000 with 580 credit score
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Cash-out Refi
- AUS Approve
- 90% LTV to $1,000,000 with 620 credit score and 50% DTI
- Manufactured home: 90% LTV to $548,250 with 640 credit score
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IRRRL
- Primary residence
- No loan amount limit
- 580 credit score
- Non-owner Occupied
- No loan amount limit
- 620 credit score
- Manufactured home
- Primary residence
- $1,000,000
- 620 credit score
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IRRRL
- Primary residence
- $1,000,000
- 640 credit score
- Non-owner Occupied
- $1,000,000
- 640 credit score
- Manufactured home
- Primary residence
- $548,250
- 640 credit score
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NewRez Product Profiles, Overlay Matrix and FHA and VA chapters of the Underwriting Guide have been updated with all manual underwriting guidelines.
Effective Date
Effective immediately