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Servicer Overlays

SERVICER OVERLAYS

***All loans must meet all of the GSE and Master Servicer requirements***
US Bank Customer Care Team -
Contact for questions regarding loan review, status, deficiencies, loan documentation requirements, or US Bank policy and procedures:
Email:  hfacustomercare@usbank.com
Phone: 800-562-5165, Option “1”

Conventional - Homebuyer education (if required) must be completed prior to closing

No manual underwrites on FHA loans

Credit Score minimum

  • 640 Conventional / VA
  • 660 FHA

DTI maximum

  • 45% FHA
  • 50% Conventional

Condos

  • FHA 96.5% LTV
  • Conventional 97% LTV, project approved by US Bank
    • Delegated approval limited to 95% LTV
  • Projects not already approved by US Bank must be submitted for approval, regardless of LTV
  • Check the U.S. Bank Reviewed Project List in the Condominium Project Review folder at www.hfa.usbank.com
  • Must receive US Bank approval (or be delegated to approve your own)

Manufactured Housing Property Options

  1. Borrower(s) must have a minimum representative credit score of:
    1. 680 for Government Manufactured Housing loans and
    2. 640 for Fannie Mae HFA Preferred Manufactured Housing
  2. For all loan types:
    1. the Maximum DTI is 45%. 
    2. NO MANUAL UNDERWRITES ALLOWED.
  3. Fannie Mae HFA Preferred Manufactured Housing loans may have a 95/105 LTV/CLTV.
  4. Lenders must follow FHA/VA/RD, Fannie Mae & U.S. Bank Manufactured Housing guidelines.

Fannie Mae Overlays

  • 1 unit maximum LTV 97%
    • 2 to 4 units available but further eligibility requirements are applicable (FICO, LTV, etc.)
  • HFA Preferred only
  • Homebuyer education must be completed prior to closing
  • Manual underwrites permitted only for Fannie Mae underwritten loans with an LTV of 95% or below
    • Maximum allowable DTI is 36%, 2 months PITIA (principal, interest, taxes, homeowner's insurance, mortgage insurance, association fees) reserves required unless product/property type requires a lower DTI or > 2 months reserves per GSE, insurer, or HFA guidelines
  • Participating Lenders must search the applicable Area Median Income (AMI) for the purpose of verifying borrower income eligibility and loan eligibility under Fannie Mae’s HFA Preferred program to determine if the borrowers’ qualifying income is at or below 80% AMI. 

Freddie Mac Overlays – Next Home Advantage

  • DU is not acceptable, LPA only
  • 1 unit only
  • No Co-signers
  • Manual underwrites permitted as long as one of the borrowers have a usable credit score
    • Manual underwrites must have 660 credit score
    • Maximum allowable DTI is 36%, 2 months PITIA (principal, interest, taxes, homeowner's insurance, mortgage insurance, association fees) reserves required unless product/property type requires a lower DTI or > 2 months reserves per GSE, insurer, or HFA guidelines
  • No Manufactured homes