17-06: Update to FHA DTI Overlay

02/23/2017
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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.