NJHMFA Credit Underwriting Guidelines

Tradeline Requirements

Effected Programs: All Programs

Attention Lenders:

NJHMFA recently updated our guidelines to include the below policy regarding minimum tradelines for our loans.

Credit Underwriting Guidelines for tradeline requirements:

A minimum of two (2) tradelines with twelve (12) months of established history is required. The accounts included cannot have been closed more than six (6) months prior to loan application. Rental housing payments are acceptable as a 2nd tradeline if there is one (1) established tradeline on the credit report. Lenders must comply with GSE/Insurer guidelines if more stringent.

Please see the below key points around how NJHMFA is applying this update to our policy.

The Agency will not include the below types of accounts towards meeting the minimum:

1.        Deferred student loans with no payments made

2.        Authorized User accounts

3.        Self-reported credit (typically phone, cable type bills)

4.        Other alternative credit accounts besides verification of rent

Additionally, the twelve (12) months of payment history must already be reported on the credit report before submitting to the agency for approval. It is acceptable to order a new credit report or credit supplement to satisfy this requirement.

New Jersey Housing and Mortgage Finance Agency | 609-278-7400 | NJHousing.govNJHousing.gov