For MCC Program:
No minimum FICO credit score or maximum debt-to-income (DTI)* requirements. You simply need to meet our income limits and work with an approved lender to use this program.
For DPA or MCC/DPA programs:
Effective April 3, 2017: No maximum debt-to-income (DTI)* requirements will apply to any loan using DPA or MCC/DPA program that receives an automated underwriting approval.
FHA Loans, VA or USDA-RHS Loans
Home buyers must have a minimum FICO score of 620. Please note, home buyers with a FICO score of 620-639 will be charged a .50% origination fee. Manual underwriting is acceptable for FHA loan files with a minimum 640 FICO score and maximum DTI ratio of 43%
*In response to the COVID-19 pandemic, the following interim requirement will be in effect for all FHA, VA and USDA mortgage loans reserved on or after May 4, 2020 - a minimum FICO score of 700 when the DTI is >45%.
Fannie Mae HFA Preferred Conventional Loans
Home buyers must have a minimum FICO score of 640 to qualify for the forgivable second lien DPA.
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*What is DTI?
DTI stands for debt-to-income, also referred to as the back-end debt ratio. It shows how much of your gross monthly income is needed to cover all your debt obligations. Follow these steps to determine your approximate DTI:
- Add up all your debt (including your mortgage, car loans, child support and alimony, credit card bills, student loans, etc.).
- Divide this amount by your monthly gross income.
- Then multiply this amount by 100. This percentage is your DTI.
Please keep in mind that you must also meet specific underwriting standards. The mortgage lender can help you better understand FICO credit score and maximum back-end debt ratio requirements, as well as any other standards that may apply.