Update to FHA Loan Programs
In accordance to HUD Mortgage Letter 2020-05 offering temporary flexibilities on FHA loans amid COVID-19 national emergency, Sun West Mortgage Company, Inc. has updated its policy for FHA programs to align with the HUD guidelines as given below:
- Verbal Verification of Employment (Effective immediately for loans closed on or before 05/17/2020): In lieu of a verbal verification of employment within 10 days of the Note, Sun West will, provided there is no indication/awareness of any loss of employment by the borrower, accept the following alternate documentation:
- A year-to-date paystub or direct electronic verification of income is provided for the pay period that immediately precedes the Note date, or
- A bank statement showing direct deposit from the Borrower’s employment is provided for the pay period that immediately precedes the Note date.
- In case of purchase transaction, borrower must have a minimum of 2 months of Principal, Interest, Taxes and Insurance (PITI) in reserves, in addition to above requirement.
Temporary Appraisal Requirements Flexibility (Effective immediately for appraisal inspections completed on or before 05/17/2020): Effective immediately, Sun West will allow either a desktop appraisal or an exterior-only inspection appraisal in lieu of the interior and exterior inspection appraisal (i.e. traditional appraisal) as long as there is sufficient information for the appraiser to complete the assignment. The optional Exterior-Only and Desktop-Only appraisals must be reported on the existing Acceptable Appraisal Reporting Forms by Property and Assignment Type. These forms will require amended certifications and clear scope of work disclosures. The appraisal report must include a signed certification indicating whether the Appraiser did or did not personally inspect the subject property and the extent of the inspection. Forms 2055/1075 are not acceptable.
- Click here for FHA provided model appraisal exterior-only certification
- Click here for FHA provided model appraisal desktop-only certification
- This flexibility is not available on New Constructions, Building on Own Lands, 203(K) loans, and cash out refinance loans.
Completion Reports (1004D): For all loans for which a completion certification is not available due to issues related to COVID-19, with the exception of New Constructions, Building on Own Lands, and 203(k) transactions, Sun West will permit a letter signed by the borrower confirming that the work was completed along with photographs of the completed work, paid invoices indicating completion, occupancy permits, or other substantially similar documentation.
If you have any questions, please contact your Client Relations Manager at (855) AT-SUNWEST or (855) 287-8693.
Sun West Mortgage Company, Inc.
6131 Orangethorpe Avenue, Suite 500
Buena Park, CA 90620
Phone: (800) 453-7884
This information is provided to licensed mortgage professionals only and not for distribution to consumers. Please visit https://www.swmc.com/disclaimer.php or refer to www.nmlsconsumeraccess.org to see where Sun West Mortgage Company, Inc. (NMLS ID 3277) is a licensed lender and servicer. All Rights Reserved. We are not accepting applications from Georgia or Massachusetts residents. We are purchasing mortgages secured by Massachusetts properties but not Georgia. Sun West Mortgage Company, Inc. (NMLS ID 3277) holds a Financing Law License (#6030119) [Loans made or arranged pursuant to a California Financing Law license], licensed by the California Department of Business Oversight, Phone: (866) ASK-CORP and has a DRE Real Estate Corporation License Endorsement (#00793885), licensed by the California Department of Real Estate, Phone: (877) 373-4542.
