This lender offers Conventional, FHA, VA, Jumbo and Non-Agency mortgage programs with minimal underwriting overlays. The lender generally follows agency guidelines without adding unnecessary credit, documentation or underwriting requirements.
This can help borrowers qualify when another lender’s internal overlays create additional conditions beyond the underlying loan program requirements.
Conventional Loan – Minimal Overlays
Assets and Earnest Money
- Earnest money deposits may not require sourcing and seasoning when agency guidelines do not require it.
- Stock and mutual fund accounts may be documented with the most recent monthly or quarterly statement rather than a two-month history.
- Large refinance deposits generally do not require an explanation unless necessary to determine whether borrowed funds or an undisclosed liability are involved.
- Gift funds permitted subject to applicable agency guidelines.
Credit and Letters of Explanation
Unnecessary letters of explanation are generally avoided.
- Address variations on a credit report do not automatically require an LOE.
- Cash-out purpose LOE generally not required.
- Credit inquiry LOE generally not required solely because an inquiry appears on the credit report.
- Utility-company inquiries generally do not require explanation.
- An LOE is not automatically required when the appraised value is below the purchase price.
- Recent mortgage ratings appearing on the credit report may eliminate the need for a separate mortgage credit supplement.
Reduced Income and Employment Documentation
Documentation is limited to what is required to support the loan decision.
- Pay stubs: One pay stub covering at least 30 days of year-to-date earnings may be sufficient.
- P&L statements: Generally not required unless needed to evaluate income stability or a declining-income trend.
- Balance sheets: Generally not required for standard income qualification.
- Tax returns: Signed returns are generally unnecessary when acceptable IRS transcripts are obtained.
- Teachers: Additional written VOE documentation may not be necessary when income can be adequately established from existing documentation.
Fannie Mae Condo Flexibility
Fannie Mae guidelines provide project-review waivers for certain properties, including:
- Detached condominium units
- Units in 2-4 unit condominium projects
Applicable property and project eligibility requirements still apply.Eligible Occupancies and Properties
Occupancies
- Owner-occupied primary residence
- Second home
- Investment property
Property Types
- Single-family residence
- Eligible condominiums
- 2-4 unit properties
- Manufactured homes
Non-Subject Real Estate Owned
For financed properties other than the subject property, a recent mortgage statement that clearly includes tax and insurance impounds may be sufficient to establish the housing expense.
Tax and homeowners insurance documentation remains required when necessary for the subject property or when the mortgage statement does not adequately document the expense.
FHA Loans With Minimal Credit Overlays
FHA financing may be available to borrowers who do not meet the higher minimum credit scores imposed by many individual lenders.
Program highlights may include:
- Credit scores starting at 500 with eligible automated underwriting
- Manual underwriting available
- One qualifying credit score may be acceptable for the primary borrower
- Gift funds permitted
- Non-traditional credit may be considered where permitted
- First-time homebuyers eligible
- Escrow holdbacks may be available
No unnecessary tradeline overlays
Flexible DTI subject to FHA and underwriting requirements
Borrowers with credit scores between 500 and 579 are generally limited to 90% LTV, while borrowers with scores of 580 or higher may be eligible for FHA maximum financing.
Conventional Loan Programs
Available conventional financing may include:
- Fannie Mae loans
- Freddie Mac loans
- Fannie Mae HomeReady
- Freddie Mac Home Possible
- Purchase loans
- Rate-and-term refinances
- Cash-out refinances
Eligibility remains subject to Fannie Mae or Freddie Mac guidelines and the applicable automated underwriting findings.
Jumbo Mortgage Program
Jumbo financing may be available with:
- Loan amounts up to $2,500,000
- Minimum credit score: 700
- 30-year fixed-rate options
- Adjustable-rate mortgage options
Available ARM structures may include 3-, 5- and 7-year initial fixed periods depending on current lender offerings.
VA Loan Program
VA financing may provide additional flexibility for eligible Veterans, service members and qualifying surviving spouses.
Program highlights may include:
- Credit scores starting at 500 with eligible automated underwriting
- Manual underwriting available from 560
- VA cash-out refinance available
- VA cash-out financing may be available up to 100% of reasonable value, subject to VA and lender requirements
- Foreclosure seasoning: 2 years
- Short sale seasoning: 2 years
- Bankruptcy seasoning: 2 years
VA eligibility and Certificate of Eligibility requirements apply.
Non-Agency Mortgage Programs
Non-Agency financing provides alternatives for borrowers who do not meet conventional or government loan requirements.
Program features may include:
- Alternative income documentation
- Minimum credit scores starting at 560
- Bankruptcy seasoning as short as 1 year
- Foreclosure seasoning as short as 1 year
- Short sale seasoning as short as 1 year
- Loan modification seasoning as short as 1 year
- Purchase and refinance options
- Cash-out refinance
Non-Agency Loan Terms
Available terms may include:
- 30-year fixed
- Interest-only options
- Adjustable-rate mortgages
Terms vary according to credit, documentation type, occupancy, LTV and loan amount.
USDA Mortgage Program
USDA financing may be available for eligible borrowers and properties in qualifying rural areas.
Program highlights may include:
- Credit scores starting at 580 under applicable lender guidelines
- Up to 100% financing for eligible purchase transactions
- Manual underwriting available
- USDA Streamlined and Streamlined-Assist refinance options
USDA income, property-location and household eligibility requirements apply.
Submit a Mortgage Scenario
Not sure which program applies? Submit your mortgage scenario for an initial review without an upfront credit check.
Mortgage Pre-Qualification Form – Credit Check Not Required
States Where These Loan Programs Are Available
Available in:
Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Illinois, Nevada, New Mexico, North Carolina, Oklahoma, Oregon, Pennsylvania, Texas, Utah, Virginia, Washington, and Wisconsin.
Program availability, guidelines and lender overlays are subject to change.
Disclosure: Broker Mortgages is not affiliated with or acting on behalf of FHA, HUD, VA, USDA, Fannie Mae or Freddie Mac.
Last Updated on 1 month ago by Broker Mortgages