Program Update for December 12-23-2022

All policy changes and updates are referenced below to the appropriate section of the CLG. These policy changes are effective January 1, 2023, unless otherwise noted.

This announcement, and previous announcements, are also available on the Announcements page of our website.

These updates apply to everyone using the Chenoa Fund program—correspondents and TPO.

5.11 | DTI Requirements

DTI overlays are determined by the qualifying credit scores on the loan.

All FHA:

  • FICO® 600+: DTI per AUS approval. If the borrower does not receive Approve/Eligible, a manual underwrite may be allowed; see section 5.25 (Manual Underwriting) for more information.
  • Note: See payment shock requirements for DTI restrictions where payment shock is a factor.

5.12 | Payment Shock Requirements

Effective January 1, 2023, CBC Mortgage Agency will implement a new policy to address payment shock. This policy will apply to all loan applications dated on or after January 1, 2023:

For Borrowers exceeding 125% payment shock or where the Borrower has no prior housing expense, the maximum DTI is 45%. AUS-approved DTI remains acceptable for those Borrowers whose new mortgage payment (PITI) will not exceed 125% of their current housing expense.

6 | Manufactured Housing

6.2.2 DTI Requirements

DTI overlays are determined by the qualifying credit scores on the loan.

All FHA:

  • FICO® 600+: DTI per AUS approval. If the borrower does not receive Approve/Eligible, a manual underwrite may be allowed; see section 5.25 (Manual Underwriting) for more information.

Note: See payment shock requirements for DTI restrictions where payment shock is a factor.

6.2.3 Payment Shock Requirements

Effective January 1, 2023, CBC Mortgage Agency will implement a new policy to address payment shock. This policy will apply to all loan applications dated on or after January 1, 2023:

For Borrowers exceeding 125% payment shock or where the Borrower has no prior housing expense, the maximum DTI is 45%. AUS-approved DTI remains acceptable for those Borrowers whose new mortgage payment (PITI) will not exceed 125% of their current housing expense.

The above changes affect the following sections:

5.11 | DTI Requirements

5.12 | Payment Shock Requirements

6 | Manufactured Housing

6.2.2 DTI Requirements

6.2.3 Payment Shock Requirements