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Lender Alerts

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Sun West Streamlines Underwriting and Expands Policies for FHA Loans with FICOs Below 640

Dear Licensed Partner,

Effective with FHA loan submissions on or after February 25, 2016, Sun West has simplified its underwriting practices to expedite the processing of your loans.

  • To streamline the underwriting process and ensure that Sun West does not go above and beyond the requirements of the new HUD handbook 4000.1, Sun West has eliminated its published Risk Factors used for underwriting review.
  • Sun West recognizes that in order to improve the services to FHA borrowers with credit scores below 640, specialized analysis is necessary to accommodate more home buyers in this end of the credit spectrum. As a result, Sun West has created a set of Comprehensive Credit Review Guidelines to assist in the substantive review of these borrowers. If the loan has a DU Approval or an LP Accept (i.e. FHA Total Score Card), Sun West will continue to rely upon the automated approval along with the Comprehensive Credit Review Guidelines to evaluate the borrower’s special circumstances, such as payment history, savings pattern, re-established credit history after financially adverse events, extenuating circumstances, and any documentation related to extenuating circumstances. For all AUTOMATED APPROVALS on FHA loans with FICOs below 640, the following guidelines will be followed:
    • If the borrower’s credit characteristic DOES MEET the Comprehensive Credit Review Guidelines, the loan file will be conditioned per automated findings and there will be NO ADDITIONAL requirements or conditions.
    • If the borrower’s credit characteristic DOES NOT MEET the Comprehensive Credit Review Guidelines, Sun West may ask for documentation, in addition to using the automated findings, to support the borrower’s demonstrated ability and willingness to make timely payments, including documentation related to the borrower’s extenuating circumstances.
  • For all FHA loans that DO NOT receive a DU Approval or an LP Accept (i.e. FHA Total Score Card), the loan will be evaluated based on manual underwriting guidelines in accordance with HUD handbook 4000.1 and the Comprehensive Credit Review Guidelines.

Sun West believes that every borrower is special and that each mortgage is a unique transaction. Sun West practices “common-sense” underwriting with every loan.

If you have any questions, please contact your Client Relations Manager at (855) OK-SUNWEST or (855) 657-8693.


Sun West Mortgage Company, Inc.
18000 Studebaker Road, Suite 200
Cerritos, CA 90703
Phone: (800) 453-7884
SW-1: Our No Overlays Program


Equal Housing Opportunity This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice.