September 18, 2013
Expanded Gift/Grant Fund Underwriting Requirements - Effective September 23, 2013; Plus Rate Runner Enhancements


Expanded Gift/Grant Fund Underwriting Requirements

Great news! Effective with mortgage insurance (MI) applications received on or after September 23, 2013, United Guaranty will allow expanded underwriting requirements for Gifts/Grants. We are changing our full-file underwriting requirements for:

United Guaranty Gift/Grant Basics
Occupancy Transaction Type Eligible Property Types Maximum LTV Maximum Loan Amount Minimum Credit Score Maximum DTI
Primary Residence (only) Purchase (only) 1-Unit, Detached, Attached, Condos, Co-ops 97% $417,000 720 41%
$625,500 740

The following requirements also apply:

Housing Finance Agency (HFA) Loans using United Guaranty’s Expanded Requirements

As a result of the changes to the Minimum Borrower Contribution requirements above, the Housing Finance Agency (HFA) Loans Using Expanded Requirements for minimum borrower contribution and/or subordinate financing are being changed for both RAP® (United Guaranty's Reporting Acceptance Program®) and full-file submissions as follows:

Loans using the HFA Expanded Requirements for subordinate financing will continue to require the borrower to contribute the lesser of $1,000 or 1% of the loan amount from their own funds (not including gifts/grants).

Expanded Requirements for Minimum Borrower Contribution and Subordinate Financing – Effective 9/23/13

Minimum Borrower Contribution
  • Gifts/Grants may be considered borrower's own funds for purposes of meeting United Guaranty's minimum borrower contribution requirement unless subordinate financing (see below) is present within the transaction.
Subordinate Financing
  • Funds that may require repayment under any circumstance are considered loans and must be included in the CLTV, including those that are forgivable or for which monthly payments are deferred.
  • Second liens must meet Fannie Mae's Community Seconds® or Freddie Mac's Affordable Seconds® requirements.
  • Minimum borrower contribution required – Lesser of $1,000 or 1% from the borrower's own funds.
  • 2 months PITIA required.
  • Financed MI is ineligible with subordinate financing.

Additional HFA Underwriting Requirements

The additional HFA underwriting requirements below apply only when the expanded requirements for minimum borrower contribution and/or subordinate financing above are used. They do not apply to HFA loans not using the expanded requirements.

Occupancy Transaction Type Eligible Property Types Maximum LTV Maximum CLTV Maximum Loan Amount Minimum Credit Score Maximum DTI
Primary Residence (only) Purchase (only) 1-Unit, Detached, Attached, Condos, Co-ops 97% 100% $417,000 680 41%
95% 100% $417,000 660

The following requirements also apply when the expanded HFA requirements are used.


Plus: Rate Runner Enhancements

More great news! We recently updated Rate Runner with new features that customers—like you—asked for:

We hope you’ll find these enhancements make it even easier to do business with us. If you have questions, please contact your United Guaranty Sales Team or:

United Guaranty Customer Contact Center
336.778.7265
UGC:CET

United Guaranty Underwriting Customer Service
877.MI.CHOICE (877.642.4642) Option 1
UGC:customerservice

CA2013-10

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