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Loan Prospector® Now Allowed with HFA Preferred
Plus: Quality Control Tips

Loan Prospector® (LP®) Allowed with Fannie Mae’s HFA Preferred™
Effective immediately, Fannie Mae now allows HFA Preferred™ loans to be run through LP®, Freddie Mac's automated underwriting service. Please see our updated HFA Preferred™ Product Description for more information.  
QC Tips: Step Up and Qualifying Income
Minnesota Housing’s Quality Control (QC) team wants to help ensure your loans meet our program guidelines and reduce audit findings. The team reviews hundreds of loan files each year and our “QC Tips” series comprises their helpful advice and best practices.
Use an industry-standard qualifying income calculation to determine whether Step Up borrowers meet the program income limits. Step Up’s qualifying income calculation differs from the eligibility income calculation used with Start Up and Mortgage Credit Certificate (MCC) program loans.
If the borrower receives downpayment assistance, the borrower’s qualifying income must be under the Monthly Payment Loan income limits, which are less than the income limits for Step Up.
Example: A husband and wife are selling their starter home and purchasing a new home in the metro area for their family of four using FHA financing and Minnesota Housing’s Step Up program. The husband has poor credit, so the wife is the sole mortgagor.
Solution: Using only the wife’s income, you would calculate her income using an industry-standard qualifying income calculation, which in this example is based on FHA’s underlying product guidelines. The qualifying income calculation determines her income to be $105,000. Since this is less than Step Up’s income limit of $124,000, the family income qualifies for a Step Up loan. However, their income exceeds the limit for the Monthly Payment Loan, so they do not qualify for our downpayment assistance.
Online Commitment System Maintenance This Weekend
Minnesota Housing’s online commitment system will undergo scheduled maintenance and will be unavailable from 5:00 p.m. Friday, May 13 through 8:00 a.m. Monday, May 16.
During this time, homeownership and home improvement lenders will not be able to: 
  • Modify or edit existing commitments
  • Create forms in Forms Generator (forms can still be downloaded from the Lender web pages and manually produced)
This scheduled maintenance will occur at the same time as the regular lock-out period for new loan commitments, which run from 5:00 p.m. Friday, May 13 through 10:00 a.m. Monday, May 16. 
Questions?
You can reach the Partner Solutions Team at 651.296.8215 or 800.710.8871 between 7:30 a.m. and 5:00 p.m. on business days.
400 Sibley Street, Suite 300 | Saint Paul, MN 55101 US
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