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Lender Alerts

Lender Alerts

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Update on Conventional guideline as per FNMA DU 10.1
(Applicable to Wholesale Channel)

Dear Licensed Partner,

Effective for all Conventional loans with DU version 10.1, Sun West will follow below outlined guidelines:

  • Debt-to- Income ratios (DTI) restriction has been removed. SWMC will accept DTI ratio as per DU.
  • Maximum financing including 97% financing is available for borrower with credit score of 660 or above (Click here).
  • Timeshare accounts on credit report are to be treated as installment debt, even if they are identified as mortgage debt on credit report.
  • Alimony payment can now be reduced from borrower’s qualifying income in lieu of including it as a monthly payment in calculating the debt-to- income (DTI) ratio.
  • Compensating factor requirement for HomeReady loan with DTI exceeding 45% has been removed.
  • Sun West will follow DU findings for loan with disputed tradelines.
  • Sun West will exclude the monthly mortgage payment from the calculation of the DTI ratio if the co-obligor (joint account holder) has been making the mortgage payment from his/her account and can document the most recent 12-month payment history without any delinquencies. Example of acceptable documentation includes cancelled checks, online payment history reflecting URL from co-obligor’s account.

For additional questions not answered by the guideline, please email Sun West’s underwriting scenario desk at for more information.

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

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.

Equal Housing Opportunity