Reminder: Specialized HFA Preferred™ Product Requirements with Minnesota Housing (LTVs from >95 to 97%)
- All lenders have access to the HFA Preferred™ conventional loan product with low mortgage insurance coverage requirements. See the HFA Preferred Product Description (previously called Term Sheet.)
- You can also offer the HFA Preferred Risk Sharing™ conventional loan product with no mortgage insurance coverage requirement. See the HFA Preferred Risk Sharing Product Description and contact us to start offering this product if not currently offered.
Minnesota Housing participating lenders are exempt from many of the HFA Preferred™ product overlay and process changes that U.S. Bank MRBP announced in Bulletins released in December 2013 and April 2014. For example, lenders do not have to send Minnesota Housing HFA Preferred™ loans to U.S. Bank MRBP for underwriting.
Minnesota Housing HFA Preferred™ product terms for loans with LTV ratios from greater than 95% to less than or equal to 97% are:
- 680 credit score is required
- No manual underwriting allowed
- Loan must be run through Desktop Underwriter (DU©) and receive an Approve/Eligible
- Maximum DTI as determined by DU© for each case file submitted, not to exceed 50% DTI