Information for Single-Family Lending and Real Estate Professionals
Program Announcement

November 22, 2017
Debt-To-Income Ratio Increased; Relief on Tax Transcripts


The Washington State Housing Finance Commission is pleased to announce the following program updates:

Debt- to-Income Ratio Increase:

The maximum debt-to-income ratio for all Commission home loans has been increased from 45.00% to 50.00%. This increase applies to all Home Advantage and House Key loan types including, FHA, VA, USDA, and conventional.

Tax Transcript Overlay Relief:

For FHA, VA and Conventional loans, W2/W9 transcripts will not be required for a borrower when all income for that borrower is derived from W-2 wage earner and/or 1099 fixed income sources. (House Key and/or Specialty Downpayment Assistance programs still require tax returns or tax transcripts).

Tax transcripts are required in the following circumstances:

When tax returns are used to qualify a borrower. The number of years provided must be based on the DU findings. Income verified via tax returns includes, but is not limited to:
• Self-employment income
• Commission Income ≥ 25%
• Rental Income
• Employment by Family Members
• Other Income Sources (i.e. Dividend, Interest, Capital Gains, Alimony etc.)

When a written VOE form 1005 is used as stand-alone income verification.

Section 2 of the manuals have been updated. New program matrices have been posted.
Here are the links:

Questions? Contact 


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