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.