eLEND broadens credit standards for FHA cash-out refinances and conventional mortgages

Article Summary

New Jersey mortgage lender eLEND is widening credit score requirements for Federal Housing Administration (FHA) cash-out refinances and conventional mortgages through a limited-time offer aimed at giving borrowers with lower scores more financing choices.

The program, known as CreditEdge, lets FHA cash-out refinance applicants qualify with scores as low as 500 and allows conventional borrowers to qualify below 620, provided they receive approval through automated underwriting systems (AUS).

The updated guidelines apply to primary homes and are available through eLEND’s retail, wholesale and nondelegated correspondent channels. Loans must be locked by the end of 2026 to be eligible.

“The Fed held rates steady recently, and with inflation still weighing on the economy, affordability can’t wait on rate relief,” said Rob Pieklo, president and CEO of eLEND. “That’s why we’re focused on what we can control. Expanding credit score requirements, backed by AUS approval to evaluate each borrower’s ability to repay, gives our broker partners more ways to get deals done and helps more people get into homes.”

For FHA cash-out refinances, the minimum credit score is 500. Fannie Mae- and Freddie Mac-backed conventional loans are eligible with scores below 620, although a minimum score of 600 applies when private mortgage insurance is required.

All loans must receive an Approve/Eligible finding from Fannie Mae’s Desktop Underwriter or an Accept finding from Freddie Mac’s Loan Product Advisor.

“Our broker partners tell us credit score requirements are one of the main reasons they have to turn borrowers away,” said Michael Brenning, chief operating officer of eLEND. “That’s changing. With expanded credit score requirements on FHA cash-outs and conventional loans, our partners can help clients tap into their equity, get more first-time homebuyers in the door, and close more loans before year-end. And with every loan backed by AUS approval, we’re expanding access without compromising on responsible lending.”

eLEND said the program combines looser credit standards with automated underwriting to preserve its lending discipline. AUS assesses a borrower’s broader financial picture, including income, assets, debts and payment history, rather than relying only on a credit score.

CreditEdge is part of a wider push by eLEND to broaden its product lineup for mortgage brokers and lending partners. Recent additions include an expanded renovation lending suite featuring the AI-powered Ready4Remodel platform, eXPRESS HELOC and debt-service-coverage ratio (DSCR) loans. The company also said jumbo AUS is coming soon.

American Financial Resources, which rebranded to eLEND last year, has generated year-to-date volume of $405.7 million, according to RETR data.