FHA Underwriting Overlays for Loans Locked after April 6, 2020
On Friday, April 3, 2020, U.S. Bank Home Mortgage - HFA Division announced (in SEL-2020-026) new overlays effective for loans locked on or after April 6, 2020.
FHA Loans (locked on or after April 6):
1. No manual underwriting allowed on FHA loans. Loans locked prior to 4/6/20 may still use or switch to manual underwriting.
2. FHA streamline refinance no longer available. Step Up loans with lock dates prior to 4/6/20 may still use/switch to FHA streamline refinance.
3. For all FHA loans <660 FICO
- 1 month PITIA reserves required
- Minimum 6 months on the current job for all sources of qualifying income
The existing FHA 650 minimum FICO score for Minnesota Housing Loans still applies. Details on the new FHA overlays can be found at Seller Guide Update 2020-026. See U.S. Bank AllRegs for all U.S. Bank requirements.
Minnesota Housing materials will be updated shortly to reflect these new FHA overlays.