Lock Process Update
As mentioned in our announcement August 16, 2019, there are a few minor changes to the lock process. The following changes will be effective in Mortgage Cadence September 5, 2019 when locking a loan:
- A preliminary run of Address Validation & GeoCoding for the subject property address will be required at the time of lock. A User Guide explaining the process is attached.
- Qualifying Income will now be required at the time of lock.
- The conventional loan limit of $484,350 is now accepted without a system override.
Should you have any questions or problems locking please contact firstname.lastname@example.org or email@example.com.
New Income and Sales Price Limits
As previously mentioned, new VHDA maximum income and sales price limits effective with new applications beginning September 5, 2019. The new limits are posted on our website and attached.
Income limits have increased for the FHA Streamline Refi and VA Interest Rate Reduction loan programs. These limits are available in the FHA Streamline Refi and VA IRRRL program guidelines.Link to New Sales Price and Income Limits
Conventional Loan Program & DU Findings
VHDA will allow the use of VHDA’s standard and grant income limits for conventional loans instead of Fannie Mae’s lower limits (80% AMI).
- Fannie Mae Reduced MI: DU will continue to render a decision of Approve/Eligible for the HFA Preferred program when the qualifying income exceeds 80% AMI. Loan Level Price Adjustments will not apply at this time. This includes allowing the lower MI coverage without any LLPAs when the qualifying income exceeds Fannie Mae’s 80% AMI.
- Fannie Mae No MI: DU will render a decision of Approve/Ineligible if the borrower’s qualifying income exceeds 80% AMI for HFA Preferred Risk Share loans. VHDA will accept this as long as the only reason for ineligibility is income exceeding 80% AMI.
Update to Loan Stacking Form
VHDA’s Loan Stacking Form (submission of closing package) has been updated to include VHDA’s new Compliance Agreement (Exhibit CA). Lenders can begin using this form immediately to submit closed loans to VHDA for purchase.