November 16, 2015
CUA 2015-06: United Guaranty's New Professional Program
Effective November 16, 2015

United Guaranty is pleased to announce expanded underwriting guidelines for doctors, attorneys, and pharmacists with high debt-to-income (DTI) ratios due to student loans. Effective November 16, borrowers with one of the designations listed below are eligible for the exclusion of deferred student loan payments from the DTI ratio calculation and/or employment beginning post-closing when the requirements are met.

Program Guidelines

Eligible Designations

At least one borrower on the loan must have one of the following designations/professions (as stated on the 1003 loan application and indicated in employment documentation):

The Professional Loan program requirements below only apply when the deferred student loan payments are not used in the DTI and/or employment is beginning post-closing. Otherwise, United Guaranty's published requirements apply.

Other than the DTI ratio or credit score variances indicated in the grid, exceptions to these requirements are not permitted.

Occupancy Transaction Type Property Type Max. LTV Max. Loan Amount Min. Credit Score Max. DTI*
Primary Residence (Only) Purchases (Only) 1-unit, SFD, SFA, Condo, Co-op 97% $417,000 620 45%
90% $625,000
95% $417,001-$625,500 700*
90% $625,501-$850,000**
* 5% DTI variance and 10 point credit score variance allowed.
** Construction-to-Permanent loans greater than $625,500 are ineligible.
Post-Closing Employment Start Date Employment for the borrower with the eligible medical designation/profession may begin up to 60 days after loan closing when:
  • Maximum 95% LTV.
  • There is a non-contingent, fully executed (accepted) employment contract or offer letter documented in the loan file.
  • There is a verbal VOE conducted to confirm authenticity of the employment documentation prior to closing.
Student Loan Debt
  • Student loan debt belonging to the borrower with the eligible medical designation/profession may be excluded from the DTI calculation with documentation to evidence deferment or forbearance for at least 12 months after the MI application date.
  • Medical Resident only: Medical Residents with a minimum of 6 months' residency remaining may use the alternative documentation listed below as evidence the student loan will be in deferment for at least 12 months:
    • Letter from employer verifying the medical resident's start date, or
    • Letter from the employer verifying at least 6 months' residency remaining.
Minimum Borrower Contribution
  • 3% for loans up to $625,500.
  • 5% for loan amounts greater than $625,500.
  • Gifts/grants may be used to satisfy the minimum borrower contribution when all of the following are met:
    • Maximum $625,500 loan amount.
    • Minimum 740 credit score.
    • Maximum 41% DTI.
    • Fixed-rate/fixed-payment or ARMs greater than 5 years only.
  • 2 months for loan amounts up to $625,500.
  • 6 months for loan amounts greater than $625,500.
When employment begins after loan closing, the following additional reserve requirement applies:
  • Reserves are required for each month after the Note date until employment begins.
Submission Type
  • Full-file and delegated submissions are eligible.
  • Construction-to-permanent loans have a maximum $625,500 loan amount.
  • All other United Guaranty underwriting requirements apply.
  • Ineligible:
    • DU® and LP® documentation efficiencies. Manual documentation required.
    • Non-occupant borrowers.
    • Subordinate financing.
    • CU SwiftClose® requirements.

This information will be included in the December update of our Underwriting Requirements Guide.

Please contact your United Guaranty Account Representative if you have questions concerning this announcement. For questions regarding underwriting requirements or submissions, contact our Underwriting Customer Service Team at 877.MI.CHOICE (877.642.4642) or email UGC:customerservice.

© United Guaranty Corporation 2015. All rights reserved. United Guaranty and CU SwiftClose are registered marks. United Guaranty is a marketing term for United Guaranty Residential Insurance Company and United Guaranty Mortgage Indemnity Company. Coverage is available through admitted company only. DU is a registered mark of Fannie Mae. LP is a registered mark of Freddie Mac.


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