April 23, 2021
Lender Bulletin 2021-1:
Updates to the Policy and Procedures (Seller’s Guide) for Participating Lenders 
Effected Programs: Various Programs
Effective Date: Loans submitted for review on or after 5/1/21
Due to the current health concerns related to COVID-19, the vast majority of NJHMFA staff will be working remotely until further notice. Please contact Agency staff via their work email address. NJHMFA encourages all of our business partners and constituents to submit any and all documentation in an electronic format whenever possible as staff will continue to check email and review information submitted electronically.  
Attention Lenders:
 
This bulletin details updates made to the Policy and Procedures (Seller’s Guide) for NJHMFA Participating Lenders. The updated edition of the Seller’s Guide will take effect on May 1, 2021 and will apply to all loans submitted for review on or after this date. The updated Seller’s Guide is currently available to review on the Agency’s website. Loans submitted for review prior to May 1, 2021 will be reviewed in accordance with the version of the Seller’s Guide released on January 2, 2021. This will remain available on the Agency’s website for use with pipeline loans submitted for review prior to May 1, 2021.


Some of the key changes to the guide include the following updates:
  • The maximum debt to income ratio (back ratio) for the First-Time Homebuyer program has been raised from 45% to 47%.
  • Down Payment Assistance is now available for use with First Time Homebuyer and Homeward Bound mortgage loans on new construction properties.
  • HFA Advantage Program Guidelines have been added to guide. This conventional mortgage program is scheduled for release later this year.
  • Citizenship, Permanent and Non-Permanent Resident rules for all programs will follow those stated in the investor/first mortgage insurer’s guidelines. This removes any overlay preventing DACA recipients from using the DPA program or the associated first mortgage.
  • The Stay At Home Program has been suspended.
  • Alimony, Child Support and Maintenance Payment rules for all programs will follow those stated in the investor/first mortgage insurer’s guidelines.
Questions? Need Help? 
If you have questions about one of our loan products or need help with a loan in the ILRS system, please e-mail your requests to SFLenders@njhmfa.gov.

Access forms, checklists, policies, previous lender bulletins and more on the NJHMFA Lender Portal. 
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New Jersey Housing and Mortgage Finance Agency | 609-278-7400 | NJHousing.gov