NJHMFA Lender Bulletin
Important Program Updates for Participating Lenders
December 29, 2020
Lender Bulletin 2020-16:
Updates to the Policy and Procedures (Seller’s Guide) for Participating Lenders 
Effected Programs: All Programs
Effective Date: January 1, 2021
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 the 2021 updates to the Policy and Procedures (Seller’s Guide) for NJHMFA Participating Lenders. The 2021 version of the Seller’s Guide will take effect on January 1, 2021 and is currently available to review on the Agency’s website. Loans reserved prior to January 1, 2021 will be reviewed in accordance with the 2020 version of the Seller’s Guide which is also available on the Agency’s website.  


Some of the key changes to the guide include updates to:
  • Amendment to the Early Payment Default Rule
  • FTHB DTI maximum ratio 
  • New construction permitted for Smart Start DPA
  • Underwriting guidelines on monthly DTI ratios, compensating factors, and monthly stable income 
  • Property acreage limitations changed to investor/first insurer’s guidelines 
  • Appraisals acreage limitations changed to investor/first insurer’s guidelines 
The updated version of the 2021 Seller’s Guide is
available under our Lender’s Resource Tab.
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