A lot of lenders say they do FHA. What they don't say is how many overlays they've stacked on top. BFF follows FHA Handbook 4000.1 directly — which means 500 FICO manual underwriting, non-traditional credit, and Streamline are all on the table.
Program at a Glance
BFF does not add credit score floors, debt ratio caps, reserve requirements, or property restrictions beyond what FHA Handbook 4000.1 requires. If HUD allows it, BFF funds it. That means the 500 FICO floor, manual underwriting, non-traditional credit, and FHA Streamline are all available — exactly as HUD wrote them.
FHA at BFF has two credit pathways. The AUS pathway is standard; the manual pathway is for borrowers who need it. Both are fully available with no additional BFF restrictions.
AUS Pathway - Standard 580+ → 96.5% LTV · 3.5% Down Requires TOTAL Scorecard Approve/Eligible finding via FHA-approved AUS. Standard qualifying ratios apply per AUS recommendation. MIP required (upfront + annual). Manual Underwriting Pathway 500-579 → 90% max LTV · 10% Down Manual underwriting per HUD 4000.1 Chapter 4. Compensating factors required. Documented rental history, minimal derogatory, and stable employment history strengthen the file. Non-traditional credit also requires manual UW.
BFF offers the full range of FHA loan options. Select the tab for the details on each.
| Max LTV (580+ FICO) | 96.5% - minimum 3.5% down payment |
| Max LTV (500-579 FICO) | 90% - minimum 10% down payment |
| Down Payment Sources | Own funds · Gift funds (100% gift allowed) · Down payment assistance · Secondary financing |
| Gift Funds | 100% of down payment and closing costs may be from gift - no seasoning requirement if properly documented |
| Seller Concessions | Up to 6% of the sales price |
| Property Types | SFR · 2-4 unit · Condos (FHA-approved only) · Manufactured homes · PUDs |
| Occupancy | Primary residence only |
| MIP (Upfront) | 1.75% of base loan amount (may be financed) |
| MIP (Annual) | Varies by loan term, LTV, and loan amount - see HUD MIP schedule |
| ⚠ Condos | Condo project must be FHA-approved or meet DELRAP/HRAP requirements. Check FHA condo approval list before ordering appraisal. |
1 Borrower Has a 500-579 FICO Score Most FHA lenders quietly apply a 580 or 620 FICO overlay. BFF has none. A borrower with a 500-579 FICO still qualifies at BFF - manual underwriting, 90% LTV, 10% down. If another lender turned them away, check BFF first. 2 AUS Returned a Refer - Manual UW Needed When TOTAL Scorecard returns a Refer or Refer/Eligible, lenders with manual UW overlays will decline the file. BFF allows manual underwriting per FHA guidelines. Compensating factors, stable employment, and a documented 12-month rental history can make these files work. 3 Borrower Has No Credit Score No FICO? BFF accepts non-traditional credit per HUD 4000.1. Rent payment history, utility payments, insurance premiums, and other regular obligations can substitute for traditional tradelines. This requires manual underwriting and a minimum 12-month history on each non-traditional account. 4 Existing FHA Borrower Wants the Streamline The FHA Streamline is the fastest refinance in the industry. No income docs, no appraisal, no credit re-qualification (non-credit qualifying). If the borrower has 6 months on their existing FHA loan and hasn't been late, BFF can close their Streamline quickly. Net tangible benefit required.
Key parameters from the BFF FHA Matrix. Download the PDF for complete guidelines before pricing any FHA scenario.
| Parameter | Requirement |
|---|---|
| Min FICO - AUS | 580 (Approve/Eligible → 96.5% LTV) |
| Min FICO - Manual UW | 500 (90% max LTV · 10% down required) |
| Min Loan Amount | $100,000 |
| Max Loan - Standard | $524,225 (1-unit, most counties - verify county limit) |
| Max Loan - High Balance | Up to $1,249,125 (high-cost counties) |
| Max LTV - Purchase (580+) | 96.5% |
| Max LTV - Purchase (500-579) | 90% |
| Max LTV - R&T Refi | 97.75% |
| Max LTV - Cash-Out | 80% |
| Overlays | None - BFF follows HUD Handbook 4000.1 directly |
| Manual Underwriting | Available per HUD 4000.1 · Refer/Eligible and no-score files eligible |
| Non-Traditional Credit | Accepted per HUD 4000.1 (12-month rent, utility, insurance history) · Requires manual UW |
| FHA Streamline | Available - credit qualifying and non-credit qualifying options |
| Temporary Buydowns | 2-1 and 1-0 buydowns allowed (purchase transactions) |
| MCC | Not permitted |
| DACA Borrowers | Check current HUD guidance - BFF follows HUD requirements |
| Non-Perm Residents | Eligible ONLY for case numbers issued BEFORE May 25, 2025. Case numbers assigned on/after May 25, 2025: INELIGIBLE. Permanent resident aliens remain eligible. |
| Note | Verify county FHA loan limits before pricing. High-balance amounts vary by county and unit count. BFF matrix does not override HUD county limits. |
3.5% down, gift funds allowed, flexible DTI. The classic FHA use case — no overlays means no artificial barriers for creditworthy first-time buyers.
500–579 FICO borrowers who've been turned away elsewhere. BFF's no-overlay policy means HUD's actual 500 FICO floor applies here.
No credit score due to limited credit history. Rent receipts, utility payments, and insurance history can qualify per HUD 4000.1 with manual underwriting.
Borrowers 2–3 years out of bankruptcy, foreclosure, or short sale who meet FHA's published seasoning requirements. No BFF seasoning overlays.
Existing FHA borrowers with 6+ months of payments who can benefit from a lower rate. No income docs, no appraisal, simplified process.
High-balance FHA up to $1,249,125 in qualifying counties. Buyers who need more than the standard FHA limit but want FHA's low down payment structure.
BFF has no FICO overlays. For AUS Approve/Eligible findings, the minimum is 580 with 96.5% LTV. For manual underwriting or borrowers with FICO scores of 500–579, the maximum LTV drops to 90% (10% down payment required). This follows FHA Handbook 4000.1 exactly — no BFF-specific floor above what HUD requires. A 500 FICO is the HUD floor; BFF accepts that.
Yes. BFF allows FHA manual underwriting per HUD Handbook 4000.1 Chapter 4. Manual UW is required when a borrower receives a Refer or Refer/Eligible finding from TOTAL Scorecard, or when the borrower has no traditional credit score. Manual UW requires compensating factors — examples include a documented 12-month rental history, minimal discretionary debt, and significant cash reserves.
BFF offers both credit-qualifying and non-credit-qualifying FHA Streamline options. The non-credit qualifying Streamline requires no income documentation, no appraisal, and no credit re-qualification — only a net tangible benefit (typically 5% reduction in P+I+MIP, or moving from ARM to fixed). The borrower must have an existing FHA-insured mortgage with 6 months of on-time payments (210 days minimum from closing, 6 payments made).
Yes. BFF accepts non-traditional credit for FHA loans per HUD 4000.1. Non-traditional credit documentation includes 12 months of rental payment history (from a landlord or property management company, not a family member), utility payment history, insurance payment history, and other regular payment obligations. This requires manual underwriting. The borrower needs at least 3 non-traditional credit references, each with a 12-month history.
Eligibility depends entirely on the FHA case number assignment date. Non-permanent resident aliens are eligible for FHA loans where the case number was issued before May 25, 2025. For case numbers assigned on or after May 25, 2025, non-permanent resident aliens are not eligible. Permanent resident aliens are not affected by this change and remain eligible.
BFF FHA Overlay Matrix — Dec 2025
If another lender turned down your FHA file, ask why. If the reason was a FICO overlay, a manual UW restriction, or a non-traditional credit policy — submit to BFF. We follow HUD 4000.1. Period.
Check current turn times before locking. Government loans may have slightly different timelines than Non-QM.
Case #s on/after May 25, 2025: non-permanent resident aliens are ineligible. Verify case number date before submitting.
Price it in the Quick Pricer, download the matrix, or call your AE. We Deliver.
