Updates are being made to align with the investor’s requirements.
Please note the effective dates for the individual updates as listed below.
Effective with locks on and after March 4, 2019, second home cash out transactions are eligible for delegated underwriting. Previously this was limited to primary residences.
Effective with applications on and after February 12, 2019, loans being refinanced with less than one-year seasoning will require a new LTV/CLTV calculation.
The LTV/CLTV will determined based on the lower of the original documented purchase price without home improvements, or the new appraised value.
If the property had home improvements completed, use the lower of the original documented purchase price plus documented home improvements, or the new appraised value.
Effective immediately, the following updates to condominium requirements apply:
- Established projects
- 75% of units have been conveyed to the unit owners
- Single-entity ownership for projects with more than 20 units
- A maximum of 25% of the units may be sold to one party
- Legal non-conforming zoning
- Appraiser must address any impact to marketability
- Commercial use
- Commercial space must not exceed 35% of the total square footage for the project/building, including commercial parking
- Two-to four-unit projects
- No project review is required
Effective with locks on or after March 4, 2019, Market Classifications have been updated to change Cambria County, PA from Market Classification 3 to Market Classification 2. This will be updated in the Lending Library on March 4th.
Please refer to the NewRez Lending Library for full details of all changes.