17-56: Update to FHA DTI Overlay

11/21/2017

Previously, PennyMac’s DTI requirements for FHA loans were determined by delivery type. For BE deliveries, DTI over 50% required a minimum 640 or LTV 5% below the maximum. For Mandatory deliveries, DTI over 50% required a minimum 680 or LTV 5% below the maximum.

Effective immediately, for FHA loans regardless of delivery type, the maximum DTI is:

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

Please contact your Sales Representative with any questions.