MPF Announcement 2025-44

MPF Traditional Selling – Nontraditional Credit Updates

The MPF Program is updating the nontraditional credit requirements in the MPF Traditional Selling Guide to specify that if one or more Borrowers on the mortgage loan does not have a credit score and is relying on nontraditional credit to qualify, the following requirements must be met:

The property must be a one-unit primary residence,
Non-occupant co-Borrowers are permitted, provided the requirements described in Section 3.1.4 Non-Occupant Co-Borrowers on the Subject Transaction are met,
The transaction must be a purchase or limited cash-out refinance,
The loan amount must meet the conforming loan limits, high-balance mortgage loans are ineligible,
The maximum debt-to-income ratio is 36%, and
A nontraditional credit history must be documented for each borrower without a credit score pursuant to the Guide.

Effective Date: PFIs may implement the new requirements immediately but must do so for all mortgage loans with applications dated on or after September 2, 2025.

The MPF Traditional Selling Guide will be updated at a later date.

For questions or assistance, please contact the MPF Service Center by using one of the following options:

References:

MPF Traditional Selling – Nontraditional Credit Updates

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