Reminder of Changes to CHFA Risk Information Scorecard (RISC) and Debt-To-Income Ratios

CHFA is committed to serving a broad range of homeownership-ready buyers, including those in the lower credit score ranges. To continue to serve those Borrowers, CHFA has made some prudent changes to the CHFA RISC and allowable Debt-to-Income (DTI) ratios.

Effective with Reservations made on and after May 1, 2011, Lenders must:

Use the updated CHFA RISC for applicants:

• With credit scores from 580 through 619; or
  
  
• Who require manual underwriting on their loans regardless of credit score; and
  
  
• With credit scores greater than 620 but less than 660, with a DTI ratio exceeding 43 percent.

• Whose credit scores are 580 through 619 and/or whose loans require manual underwriting must have a DTI at or below 43 percent - no exceptions.
  
  
• With credit scores 620 through 659 and with DTIs greater than 43 percent: They must pass CHFA RISC.
  
  
• Whose credit scores are between 620 and 659: The maximum DTI is 50 percent - no exceptions.
  
  
• With credit scores 660 or greater: The maximum DTI is 55 percent.

• Applicants with 25 percent or less payment shock will now receive a positive one (1) point.

• Total collections of less than $100 within the past 12 months will no longer stop the applicant from advancing under CHFA RISC.
  
  
• Paying off old collections prior to Reservation will not earn an applicant a positive one (1) point.
  
  
• Applicants with no collections within the past 24 months can score a positive one (1) point.