17-06: Update to FHA DTI Overlay

17-06: Update to FHA DTI Overlay

February 23, 2017

In PennyMac’s continuing effort to ensure guidelines support current lending conditions, effective Tuesday, February 28, 2017, PennyMac is updating the FHA loan DTI overlay for Best Effort and Mandatory deliveries.

 

Best Effort Deliveries

 

  • DTI ≤ 50%: Follow program credit score and LTV/CLTV maximums
  • DTI > 50%:
    • Credit score must be ≥ 640, or
    • LTV is 5% below the maximum

 

Mandatory Deliveries

 

  • DTI ≤ 50%: Follow program credit score and LTV/CLTV maximums
  • DTI > 50%:
    • Credit score must be ≥ 680, or
    • LTV is 5% below the maximum

 

 

Please contact your Sales Representative with any questions.