NJHMFA Lender Bulletin
Important Program Updates for Participating Lenders
November 19, 2020
Lender Bulletin 2020-15:
Updates to the Temporary Credit
Standard Changes Related to the
COVID-19 National Emergency
Effected Programs: FTHB & Homeward Bound
Effective Date: All Loan Closings as of November 20, 2020
Due to the current health concerns related to COVID-19, the vast majority of NJHMFA staff will be working remotely until further notice. Please contact Agency staff via their work email address. NJHMFA encourages all of our business partners and constituents to submit any and all documentation in an electronic format whenever possible as staff will continue to check email and review information submitted electronically.  
Attention Lenders:

This bulletin details changes to the temporary adjustments to the NJHMFA Single Family Lending Credit Standards that were announced in the Lender Bulletin 2020-6. NJHMFA is removing the credit score restriction and adjusting the reserves requirement.

Decrease Credit Score Requirement
(First-Time Homebuyer and Homeward Bound Only):
Borrowers will be required to have a minimum representative credit score of 620 or higher to use these NJHMFA Programs. 

Reserves Requirement
(First-Time Homebuyer and Homeward Bound Only):
All borrowers are now required to have two (2) months of reserves of the monthly mortgage payment available as liquid assets prior to the Agency issuing an approval for the FTHB or Homeward Bound Loans with/without Down Payment Assistance. This replaces the prior requirement from Lender Bulletin 2020-6, which had mandated 3 full months of payment in reserves. All loans must continue to meet the underlying FHA/VA/USDA requirements, including any reserve requirements from the investor/insurer.

Please refer any questions or issues regarding the above to the NJHMFA Business Development Team at SFLenders@njhmfa.gov.
Questions? Need Help? 

If you have questions about one of our loan products or need help with a loan in the ILRS system, please e-mail your requests to SFLenders@njhmfa.gov. 

Access Forms, Checklists, Policies, Previous Lender Bulletins and More at the Lender Resources Page: www.njhousing.gov/lenders/
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New Jersey Housing and Mortgage Finance Agency | 609-278-7400 | NJHousing.gov