Start Up and Step Up Credit and DTI Requirements
General Credit Requirements
Any Start Up or Step Up Borrower must meet the requirements referenced within the sections below (as applicable) in addition to base product requirements.
- Meeting these credit score and DTI investor overlays does not guarantee underwriting approval
- For Borrowers with no credit score, see the No FICO Score section below
- Rapid rescore is permitted
Please reach out to the Partner Solutions Team (PST) by phone 651.296.8215 or email at mnhousing.solution@state.mn.us for assistance if the commitment system does not show a product that should be valid based on the information presented on this webpage.
U.S. Bank AllRegs Resources
All loans must meet U.S. Bank Home Mortgage – HFA Division overlays and other requirements as detailed on U.S. Bank’s AllRegs website.
Government Product Resources
- Minnesota Housing Government Loans Product Guide file path:
HFA Division Lending Guide, 500: Housing Finance Agency, Minnesota, Minnesota HFA, Product Guides, HFA Government - Overlay Matrix for HFA Government Loans for delegated lenders file path:
HFA Division Lending Guide, 1400.01: Overlay Matrix, Delegated HFA Government Overlays
Conventional Product Resources
- Minnesota Housing Conventional Product Guide file path:
HFA Division Lending Guide, 500: Housing Finance Agency, Minnesota, Minnesota HFA, Product Guides, Minnesota HFA Conventional - Overlay Matrix for HFA Conventional Loans for delegated lenders file path:
HFA Division Lending Guide, 1400.02: Overlay Matrix, Delegated HFA Agency Overlays
Government Loans
Rural Development (RD) and Veteran Affairs (VA)
Products available:
- RD and RD Streamline Refinance
- VA and VA Interest Rate Reduction Refinance (RRRL)
Automated Underwriting Credit Score and DTI Requirements:
- 640 FICO – 45% DTI
- 660 FICO – 50% DTI
Manual underwriting guidance:
- See Minnesota Housing Government Product Guide on U.S. Bank AllRegs for details, including reserves requirements. See U.S. Bank Resources section above for file path.
Federal Housing Administration (FHA) and FHA Streamlined
FHA
Automated Underwriting Credit Score and DTI Requirements:
- 650 FICO – 45% DTI
- 660 FICO – 50% DTI
Manual underwriting guidance:
- Manual underwriting allowed for 1-2 unit properties
- See Minnesota Housing Government Product Guide on U.S. Bank AllRegs for details, including reserves requirements. See U.S. Bank Resources section above for file path.
FHA Condo Spot Approval:
- Minnesota Housing delegated lenders can underwrite FHA condo spot approval to max 90% LTV / 100% CLTV.
- See Overlay Matrix for HFA Government Loans for delegated lenders on U.S. Bank AllRegs. See U.S. Bank Resources section above for file path.
For FHA Streamline Refinances follow FHA guidelines.
Conventional Loans
Fannie Mae HFA Preferred
For an LTV less than or equal to 95%
Automated Underwriting Credit Score and DTI Requirements:
- 640 FICO – 50% DTI
Manual underwriting guidance:
- Manual underwriting allowed for 1-unit properties
- Manual underwriting for 2-unit properties not allowed
- Credit Score and DTI Varies, see Minnesota Housing Conventional Product Guide on U.S. Bank AllRegs for full requirements. See U.S. Bank Resources section above for file path.
- Follow HomeReady® reserves requirements
For an LTV that is greater than 95% and less than or equal to 97%:
Credit Score and DTI Requirements
- 640 FICO – 50% DTI
Underwriting Guidance
- Automated DU® required
- 2-unit properties not allowed
- Manual underwriting not allowed
Freddie Mac HFA Advantage
For an LTV that is less than or equal to 95%:
For 1-unit properties:
- Follow the guidance below for LTVs less than or equal to 97%.
For 2-unit properties:
- 640 FICO – 50% DTI
- Automated underwriting required.
For an LTV that is less than or equal to 97%:
Automated Underwriting Credit Score and DTI Requirements:
- 640 FICO – 50% DTI
Manual underwriting guidance:
- 660 FICO – 45% DTI
- Manual underwriting allowed for 1-unit properties—See Minnesota Housing Conventional Product Guide on U.S. Bank AllRegs for details. See U.S. Bank Resources section above for file path.
- Manual underwriting for 2-unit properties not allowed
- Follow HomePossible® reserves requirements
Upfront Paid Mortgage Insurance (UPMI)
Follow standard product-specific guidance above.
UPMI Additional Information:
- The credit score determines the MI rate. The AUS findings provide percentage of coverage based on Area Median Income (AMI).
- If credit score is below 720, call PST before locking the loan at 651.296.8215.
- Unused UPMI SRP must be credited to the borrower for closing costs.
- UPMI can be applied to single pay or split premium MI coverage.
- See the SRP Lender Credit Examples for additional guidance.
Manufactured Housing
Government
FHA – Manufactured Housing
Credit Score and DTI Requirements:
- 650 FICO – 45% DTI
Underwriting Guidance:
- Manual underwriting not allowed
VA and RD – Manufactured Housing
Credit Score and DTI Requirements:
- 660 FICO – 45% DTI
Underwriting Guidance:
- Manual underwriting not allowed
Conventional
Fannie Mae HFA PreferredTM – Manufactured Housing
For an LTV that is less than or equal to 95% with a CLTV equal to or less than 105%:
Credit Score and DTI requirements
- 640 FICO – 45% DTI
Underwriting Guidance
- Manual Underwriting not allowed
For an LTV that is less than or equal to 97% with a CLTV less than or equal to 105%:
Credit Score and DTI Requirements
- 660 FICO – 45% DTI
Underwriting Guidance
- Fannie Mae MH Advantage® only
- Manual underwriting not allowed
Freddie Mac HFA Advantage® -- Manufactured Housing
For an LTV that is less than or equal to 95% with a CLTV equal to or less than 95%:
Credit Score and DTI requirements
- 660 FICO – 45% DTI
Underwriting Guidance
- Manual Underwriting not allowed
For an LTV that is less than or equal to 97% with a CLTV less than or equal to 105%:
Credit Score and DTI Requirements
- 660 FICO – 45% DTI
Underwriting Guidance
- Freddie Mac CHOICEHomes® only
- Manual underwriting not allowed
Upfront Paid Mortgage Insurance (UPMI) – Manufactured Housing
- Freddie Mac HFA Advantage® – Not allowed
- Fannie Mae HFA PreferredTM – Not allowed
Non-Traditional Credit and No FICO Score
Non-Traditional Credit
For Borrowers with Non-Traditional Credit
- Follow Fannie Mae HomeReady, Freddie Mac Home Possible or FHA/VD/RD underwriting guidelines
No FICO Score
For Borrower with No FICO score
- Follow Fannie Mae HomeReady, Freddie Mac Home Possible or FHA/VD/RD underwriting guidelines
Manual underwriting requirements
- See Minnesota Housing Product Guides in U.S. Bank AllRegs. For file path to product guides, see U.S. Bank AllRegs Resources section above.