The following guideline changes have been made to Conventional and Government products to accommodate West Virginia state lending regulations. The state regulations (Code R. Section 106-5-11) require lenders to perform a complete assessment of the borrowers’ ability to repay the mortgage based on a full review of borrower’s credit, assets, and income. NewRez, in response, will adjust the product guidelines with overlays for documentation on loan products that are normally non-credit qualifying, such as the FHA Streamline and the VA IRRRL and also place limits on DTI for certain purchase money and refinance products.
Product Guideline Changes for Loans in West Virginia
The following guideline changes are effective for all loans registered or locked on or after August 11, 2020.
- The maximum DTI for all Conventional Purchase and Refinance products is 50%
- FHA Streamline Refinance, VA IRRRL and USDA Streamlined-assist Refinances must be credit-qualified.
- The maximum DTI for FHA, USDA, and VA cash-out refinance transactions is 50% or the product maximum, whichever is less.
- VA purchase transactions may follow AUS findings, regardless of DTI, per product requirements.