Update on Conventional guideline as per FNMA DU 10.1
(Applicable to Correspondent Channel)
Dear Licensed Partner,
Effective for all Conventional loans with DU version 10.1, Sun West will follow below outlined guidelines:
- Debt-to- Income ratios (DTI) restriction has been removed. SWMC will accept DTI ratio as per DU.
- Maximum LTV/CLTV for adjustable-rate mortgages (ARMs) and fixed rate mortgages have been increased (Click here).
Maximum financing including 97% financing is available for borrower with credit score of 660 or above.
- Timeshare accounts on credit report are to be treated as installment debt, even if they are identified as mortgage debt on credit report.
- Alimony payment can now be reduced from borrower’s qualifying income in lieu of including it as a monthly payment in calculating the debt-to- income (DTI) ratio.
- Sun West will follow DU findings for loan with disputed tradelines.
- Sun West will exclude the monthly mortgage payment from the calculation of the DTI ratio if the co-obligor (joint account holder) has been making the mortgage payment from his/her account and can document the most recent 12-month payment history without any delinquencies. Example of acceptable documentation includes cancelled checks, online payment history reflecting URL from co-obligor’s account.
For additional questions not answered by the guideline, please email Sun West’s underwriting scenario desk at firstname.lastname@example.org for more information.
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.