Lenders and Real Estate Professionals
• Downloads
• Training
• Seminar Set-Up
• References
• Lender Online
Information for Single-Family Lending and Real Estate Professionals
Program Announcement
May 11, 2020
REMINDER: Important Changes to Government Home Advantage Loans Starting May 18, 2020.
Dear Partners,
Effective with reservations beginning May 18, 2020, FHA/VA/USDA Home Advantage loans with DTI ratios between 45.01% and up to 50% will no longer be serviced by Lakeview Loan Servicing and will be switched to Idaho Housing & Finance Association (IHFA).
These loans will also require a 660-credit score to be eligible under the program, for all borrowers.
The minimum credit score for FHA/VA/USDA Home Advantage loans at or below 45% DTI remains unchanged at 620 and will continue to be serviced by Lakeview Loan Servicing.
All other program terms and conditions still apply.
No other Home Advantage Program loans will be impacted by these changes. No changes are being made to House Key Opportunity program loans.
Why are we implementing this change?
Many of you viewed Lakeview's program announcement dated April 23,2020. Because of the Commission's need to continue to serve families between 45.01%-50% DTI, we reached an agreement with IHFA to service loans above 45% DTI, at a minimum credit score of 660.
The Commission continues to evaluate the performance of our loans and we hope to open up the credit-score requirement over time, but no guarantees. Please be advised these guidelines may be subject to change at any time as we continue to navigate through these uncertain times.
The Home Advantage manual will be updated with the above changes accordingly. We posted a Servicer Change Chart credit score/DTI matrix as a reference tool.
Please feel free to reach out to Corinna Obar or Lisa DeBrock with questions.