Attention Lenders:
This bulletin details temporary adjustments to the NJHMFA Single Family Lending Credit Standards due to the COVID-19 pandemic. We have determined the need to temporarily revisit how we offer and administer our various loan products. In developing these temporary measures, we have reviewed the changes made by the GSEs and other lending institutions. We will provide guidance as we can, as these changes are being temporarily implemented until the market returns to normal.
The following Agency overlays are applicable to new loan reservations made from the effective date of this lender bulletin and until these temporary overlays are amended by the Agency.
Increased Credit Score Requirement
(First Time Homebuyer and Homeward Bound Only):
For all new loan reservations, borrowers will be required to have a
minimum credit score of 650
for higher to use NJHMFA Programs until further notice.
Reserves Requirement
(First Time Homebuyer and Homeward Bound Only):
All borrowers are now required to have
three (3) months of reserves
of the monthly mortgage payment available as liquid assets prior to the Agency issuing an approval for the FTHB or Homeward Bound Loans with/without Down Payment Assistance.
Shortened Verification of Employment (VOE) Timeline
(First Time Homebuyer, Homeward Bound and PFRS)
:
The time limit for verification of employment has now been reduced to a
maximum of three (3) days prior to the closing
date for all NJHMFA Programs.
Note
: There may be additional requirements to the PFRS process at a later date. We will inform you of any changes, via bulletin, as soon as possible.
Please refer any questions or issues regarding the above to the NJHMFA Business Development Team at
SFLenders@njhmfa.gov
.
