CMS FHA Guideline Overlays |
Guideline Updates |
Items paid outside closing |
Removed overlay. Allow POC for appraisal and |
Manufactured homes: No alterations or additions to |
Removed overlay. Manufactured homes with |
Manufactured home with an |
Removed overlay. Permitted if the 2nd |
Mixed use properties require |
Removed overlay. Follow HUD requirements for |
Unpermitted addition or conversions greater |
Removed overlay. Appraiser must comment if the |
Ineligible properties with |
Removed overlay. |
Requirement for both home inspection and |
Updated overlay. If Consultants are |
Currently CMS requires the bid prior to |
Removed the overlay for the Underwriter to |
CMS VA Guideline Overlays: |
Guideline Updates |
Max cash out to 90% LTV for FICO 550- 619 |
Allow up to 100% LTV for FICO Require LOE for purpose of cash |
Maximum cash out up to 100% LTV |
No maximum cash out up to 100% Require LOE for the purpose of |
Requirement for 100% joint |
Removed overlay. |
CMS All |
Guideline |
Revolving accounts paid off through closing |
Removed requirement to close |
Credit procedure for Current process requires CMS |
Procedure revised to send AofA Title or Closing Agent will |
Conventional Loan Programs
CMS |
Guideline |
Transferred appraisal not permitted |
Allow |
Condo minimum square footage requirement is |
No restriction for minimum square footage; |
Future employment is not permitted |
Permit future employment. Require contract or employment offer at the prior to documents and a paystub prior to |
Full appraisals are required |
Removed overlay. Follow FHLMC Home Value Explorer (HVE) |
Freddie Mac Open Access and DU Refi Plus limited |
Removed overlay. Follow Open Access and DU Refi Plus for AUS |
Open Access investment properties are |
Removed overlay. Allow investment properties meeting all |
95% Maximum LTV |
Launch FNMA HomeReady on 3/1 with 97% LTV |
Financed Mortgage Insurance (MI) is not |
Removed overlay. CMS will permit financed MI. |
Rent loss insurance is required for 2-4 |
Removed overlay. Rent loss insurance will not be required. |
Appraisal updates are not acceptable to CMS |
Removed overlay. Allow for appraisal updates following |
CMS |
Guideline |
Flip transactions less than 90 days are |
Removed overlay. Allow flips less than 90 days with |
Chipping paint on homes built prior to 1976 |
Removed overlay. Follow guidance for health and safety if |
Minimum two (2) reported credit scores for |
Removed overlay. Allow one (1) minimum score for each |
Non-Owner Occupant on Cash – Out Refinance |
Removed overlay. Follow FNMA. |
Max Financed properties 6 |
Removed overlay. For FNMA only, allow up to 10 maximum |
The content of this website is intended for licensed third party originators or brokers only and may not be duplicated or disseminated to the public. Carrington Mortgage Services is one of the leading wholesale mortgage lenders.
Government Agency Approval | FHA Non-Supervised Mortgage Approval #: 24751-0000-5 | VA Automatic Lender Approval #: 902324-00-00