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Announcement - Non-Agency Bronze Guideline Updates

PHH has made updates to our Bronze Non-Agency Products effective March 4th as summarized below.

Prime Product

  • Minimum FICO has been lowered for 90% LTV for purchase transactions
  • Primary residence LTV has increased from 70% to 75% up to $3.5MM for Purchase and Rate/Term transactions
  • 2nd homes are now eligible up to $3MM with a 720 FICO
  • LTVs for investment homes greater than 85% require a minimum loan amount of $200k
  • Overlay removed for loans over $2MM being capped unless 2-4 units
  • Tradelines clarification that if the primary wage earner has 3 credit scores the minimum tradeline requirement is waived for all borrowers
  • Alt Doc – WVOE is capped at $1.5MM
  • Bank Statement loans – Option 2: 3rd party Expense Ratio is now 10% (previously 15%)
  • Updated the ownership timing from application date to the now the Note date
  • Non-Warrantable Condo projects must be 100% complete and the HOA turned over to be eligible
  • Pre-Payment penalty section updated for Pennsylvania to align with 2025 limits
  • Reserves have been lowered and are now based on the document type versus loan size
  • Departing Residence Pending Sale – 6-month PITIA reserve requirement has been removed


Plus Product

  • Minimum FICO has been lowered for max loan amounts of $2MM and $2.5MM
  • Overlay removed for loans over $2MM being capped unless 2-4 units
  • Tradelines clarification that if the primary wage earner has 3 credit scores the minimum tradeline requirement is waived for all borrowers
  • Bank Statement loans – Option 2: 3rd party Expense Ratio is now 10% (previously 15%)
  • Updated the ownership timing from application date to the now the Note date
  • Non-Warrantable Condo projects must be 100% complete and the HOA turned over to be eligible
  • Pre-Payment penalty section updated for Pennsylvania to align with 2025 limits
  • Reserves have been lowered and are now based on the document type versus loan size
  • Departing Residence Pending Sale – 6-month PITIA reserve requirement has been removed


DSCR

  • For PHH Connect DSCR >1, we removed the LTV and minimum FICO score for Short Term Rental refinances and purchases
  • PHH Premier DSCR >1, Condo max LTV removed and is now 75%
  • Non-Permanent Resident Aliens – removed the 1–2-unit overlay
  • Updated to allow First Time Homebuyers – new section has been added to the product description
    • Minimum 1.0 DSCR; 720 FICO, Max 70% LTV, Max 750k loan amount
    • Motivation letter required for purchasing investment and not owning as primary occupancy
  • Clarified properties owned free and clear satisfy housing history requirements if property taxes are current
  • Reduced the amount of down payment required from 10% to 5% before gift funds may be used
  • Updated the ownership timing from application date to the now the Note date
  • Pre-Payment penalty section updated for Pennsylvania to align with 2025 limits
  • Reserves have been updated to align with DSCR calculation versus loan size



If you have any questions or would like to learn more, please contact your Correspondent Specialist, Sales Executive, or contact us via the support line at 1-800-929-4744.


Thank you for your continued business.