Effective immediately, NewRez is removing all overlays that imposed additional documentation requirements when using rental income to qualify.
- For conforming transactions, the overlay removal is applicable to Subject Investment Property Transactions, Rental Income from Other Real Estate Owned and Conversion of Primary Residence to an Investment
- For government (FHA, VA, and USDA) transactions, the overlay removal is applicable to Rental Income from Other Real Estate
The following highlights those overlay removals:
- Evidence of receipt of rental income;
- Additional three months reserves;
- Evidence of receipt of security deposit; and
- Proof of receipt of first month’s rent, if required by the lease
In addition, the COVID Business Impact and Continuity Attestation is no longer required for self- employed borrowers unless the underwriter needs additional information to assess the borrower’s income stability for all products, excluding SmartSelf.
Please reference the applicable Product Profiles and Underwriting Guide in the NewRez Lending Library for the changes outlined in this announcement.