What Are Mortgage Lender Overlays?
"Never let your memories be greater than your dreams."_ Doug Ivester
Hello and welcome to Houston first time home buyers edition. Today we are looking at what are mortgage lender overlays. Mortgage lender overlays are simply additional requirements, lenders impose, on top of regular mortgage guidelines set by HUD, FHA, VA, USDA, Freddie Mac and Fannie Mae, that can make it a bit more difficult for home borrowers to qualify for a mortgage loan.
For example, while FHA will accept credit score as low as 500 with 10% down payment, the lender you work with, may require a minimum credit score of 640. Another example is, although The Department of Veterans Affairs does not set a minimum credit score requirement for VA loans, the lender you work with will. Mortgage lender overlays can include but not limited to:
Stricter debt-to-income ratios.
Larger down payment.
Higher credit scores.
Mortgage questions and concerns should always be addressed with your loan officer. As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please give us a call 713.204.8013 or Email us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana
