New Product Launch: Fannie Mae MH Advantage
Overview
Newrez LLC "Newrez" Approved Correspondent Clients: Newrez is pleased to offer the Fannie Mae MH Advantage Program, offering low down payment loans for qualifying factory built homes with features typical of traditional site-built single family homes.
Please refer to the updated Product Summaries for the correct product codes when registering or locking your loans. In addition, the Newrez Conforming Underwriting Guide chapters have been updated for property type and appraisal requirements.
These changes are effective January 9, 2023.
Product Highlights
MH Advantage may only be used to finance manufactured homes that have the MH Advantage sticker. Loans secured by MH Advantage properties have a number of flexibilities compared with standard manufactured homes including
- Higher LTV ratios up to 97% LTV
- 105% CLTV with Community Seconds financing only
- Financed Mortgage Insurance up to 97% CLTV
- Reduced MI coverage required available for Fixed Rate terms ≤ 20 years
- Standard Manufactured Housing LLPA of 0.50% is waived for this program
- MH Advantage can be combined with the HomeReady Program
Additional Details
- Desktop Underwriter requirements:
- Must receive a DU Approve/Eligible
- Must identify the property types a MH Advantage (select MH Advantage in the Subject Property Type field, even if the property is located in a project)
- DU does not distinguish between single-wide and multi-wide units
- Multi-wide units only
- Home Design Requirements: Architectural and Site Installation Standards must be met as evidenced by the MH Advantage sticker affixed to the property by the manufacturer of the home.
- Offers client ability to expand relationships with Participating Manufacturers listed on fanniemae.com/manufacturedhome