New Single Family Housing Policy Handbook and Updated Underwriting Guidelines for FHA Loans
Dear Licensed Partner,
The U.S. Department of Housing and Urban Development (HUD) has issued a new Single Family Housing Policy Handbook (4000.1). The new Handbook, which will go into effect on September 14, 2015, will consolidate existing FHA lending requirements and is designed to serve as a comprehensive source of single-family housing policy.
In addition to amending existing FHA policies, the new Handbook will also supersede a list of existing guides, Mortgagee Letters, and Housing Notices. For more information, please visit HUD‚Äôs Handbook page.
In preparation for the new Handbook, Sun West is updating its underwriting guidelines for FHA loans and will be rolling out periodic updates pertaining to the new Handbook.
Effective for FHA loans submitted to Sun West on or after August 17, 2015, the updated guidelines below will be implemented.
A) Self-employment income
A¬†manual downgrade¬†from FHA’s TOTAL Scorecard will be required if income from businesses declined more than 20% in effective income over a two year period.¬†
*In FHA Handbook 4000.1,¬†Effective Income¬†refers to income that may be used to qualify a Borrower for a Mortgage.
B) Income stability
C) Evaluating credit history for manually underwritten loans
If you have any questions, please contact your¬†Client Relations Manager¬†at¬†(855) OK-SUNWEST ¬†or¬†(855) 657-8693.
This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice.