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Servicer Overlays

SERVICER OVERLAYS

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 must be completed PRIOR TO closing

No manual underwrites on FHA loans

Credit Score minimum

  • 640 Conventional / RD / 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

*All loans must meet all of the GSE and Master Servicer requirements

  • 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

Freddie Mac Overlays – Next Home Advantage

*All loans must meet all of the GSE and Master Servicer requirements

  • 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