What is a NO Overlay Lender you might Ask?
Access Capital Group, Inc. is a NO Overlay Lender meaning we pre approve loans to the Investor Guidelines and have done so since 2001.
A “Lender Overlay” is a guideline (or set of guidelines) on top of the actual investor guidelines. An investor would be Fannie Mae, Freddie Mac, FHA, VA and the USDA. A lot of Banks and Lenders will have their own requirements on top of the Investors making it even more difficult to be approved for a loan.
We often have borrowers tell us they couldn’t get approved and feel discouraged. Just because a Bank or Lender tells you NO doesn’t mean you cannot get approved. The first question we ask, is why?
The Most Common Overlays
*Requiring a minimum credit score
*Types of properties
*Limited Trade lines reporting to credit
*Bankruptcy and Foreclosure seasoning
*Types of properties
*Cash reserve requirements
*Insufficient funds on bank statements
*Collections and charge offs
*Gifts for down payment or reserves
*NO manual underwrites. Meaning and automated approval or an approve/eligible was not received. Reasons for a refer/eligible would be lack of credit depth, collections or charge offs or medical collections.
*Loan to value limit on Cash Out Refinances
*Must have Full Tax Returns
The Lender Overlay list is long and varies from Bank to Lender.
Do not get discouraged when you are told NO. More than likely if was a Lender Overlay.
Most importantly make sure you are working with a Loan Officer and Lender who will take the time to review all your VA loan options and has experience working with No Overlay manually underwritten VA Loans. Because, even if you meet all the VA manual underwriting criteria the loan must still be underwritten by a VA Underwriter who must weigh all the risks and compensating factors to make their final loan decision even if they have NO Overlays.
Below are some loans we are pre approving borrowers for now.
VA Loan Low Credit Score ZERO DOWN LOAN 500 Minimum Credit
VA IRRRL No Credit Score Required
FHA Loan Low Credit Score 500 Minimum Credit Score
FHA Streamline Refinance NO Credit Score Required
Bank Statement Loan for Income 12 or 24 Months
Conforming Loans with a 3% Down Payment