Effective with new registrations and pipeline loans on Monday, October 29, 2018, New Penn Financial is making certain updates where applicable to our Conventional, HomeReady®, Home Possible®, DURP and LPOA guidelines as noted below.
Manufactured housing is now eligible with Texas 50(a)(6) loans
- Applies to Conventional, DURP and LPOA products
Self-Employment: Documentation or evaluation is not required when a borrower or co-borrower is qualified using only income that is not derived from self-employment and self-employment is a secondary and separate source of income (or loss).
- Applies to Conventional, HomeReady and Home Possible products
Condominium updates
- Two-to four-unit projects no longer require project review
- Applies to Conventional, HomeReady and Home Possible products
- Single entity ownership for projects with 21 or more units has been increased to 25% for LPA scored loans
- Applies to Conventional and Home Possible products
- Applies to Conventional and Home Possible products
Credit inquiries within the past 90 days must be addressed by the borrower (previously 120 days)
- Applies to Conventional, HomeReady, Home Possible, DURP and LPOA products
Reserves: Removed the requirement for reserves for two-to four-unit owner-occupied properties
- Applies to Conventional products
High Balance ARMs: Updated High Balance ARMs to align with fixed products
- Applies to Conventional products
Please reference the Product Matrices page for full details of the changes outlined in this announcement.