This bulletin details the 2021 updates to the Policy and Procedures (Seller’s Guide) for NJHMFA Participating Lenders. The 2021 version of the Seller’s Guide will take effect on January 1, 2021 and is currently available to review on the Agency’s website. Loans reserved prior to January 1, 2021 will be reviewed in accordance with the 2020 version of the Seller’s Guide which is also available on the Agency’s website.
Some of the key changes to the guide include updates to:
- Amendment to the Early Payment Default Rule
- FTHB DTI maximum ratio
- New construction permitted for Smart Start DPA
- Underwriting guidelines on monthly DTI ratios, compensating factors, and monthly stable income
- Property acreage limitations changed to investor/first insurer’s guidelines
- Appraisals acreage limitations changed to investor/first insurer’s guidelines