What Are Lender Overlays?

What Are Lender Overlays?
What Are Lender Overlays?

Hi, this is Tom Heath with a Mortgage Guidance Group at Nova Home Loans. And this is our weekly installment of Mortgage and Real Estate Related Matters. Today’s topic is a term that you’ve heard called overlays. I’ve gotten a few questions about this as the markets are shifting. Agents are asking me what they specifically an overlay may be.

In general, all of the loan programs have their specific guidelines, and some lenders choose to make a little bit tighter restrictions on there loans, because they do remain liable for the performance of that loan, even if it meets the basic agency guidelines. So those lenders might require higher credit scores or different criteria, and that is called an overlay. In general. I’m pleased to say that Nova does not have overlays. We tend to follow the guidance from Fannie Mae, Freddie Mac, USDA, VA, FHA, pretty closely, and makes us pretty competitive in the market and gives the most opportunities to our clients.

If you have any questions, don’t hesitate to reach out. Our new website is MGGroupTucson.com, and we look forward to talking to you in the future. Have a great day!

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