CONVENTIONAL UNDERWRITING

Transcription

1 OCC Second Home Investment PURCHASE Refinance R/T Refinance C/O Up to $417k High Balance Up to $417k High Balance Up to $417k High Balance Fixed/Arm Fixed/Arm Fixed/Arm Fixed/Arm Fixed/Arm Fixed/Arm SFR Detached 97* / / 75 97* / / / / 75 SFR Attached 97* / / 75 97* / / /75 80 / 75 Condominium 97* / / 75 97* / / / / 75 Townhouse 97* / / 75 97* / / /75 80 / 75 2 Unit 85 / / / / / / Unit 75 / / / / / / 65 SFR Detached 90 / / / / / 65 - SFR Attached 90 / / / / / 65 - Condominium 90 / / / / / 65 - Townhouse 90 / / / / / 65-2 Unit Unit SFR Detached 85 / / / / / 65 - SFR Attached 85 / / / / / 65 - Condominium 85 / / / / / 65 - Townhouse 85 / / / / / 65-2 Unit 75 / / / Unit 75 / / / 60 - Standard: C10, C15, C20, C25, C30, C30DU97, C5YL, C7YL and C10YL High Balance: C15J, C30J, C5YLJ, C7YLJ and C10YLJ Fixed: 10, 15, 20, 25 and 30 Yr; ARM: 5/1, 7/1 and 10/1 LIBOR Fannie Mae Desktop Originator DO or Desktop Underwriter DU Approve Eligible only. Manual UW not permitted. Minimum 620, All High Balance Unit properties do not require 5% down payment from borrower. All funds can come from acceptable gift sources. 2-4 unit properties require a minimum 5% borrowers own funds. Gift fund permitted after 5% DP has been met. No Gifts are permitted on Investment. Standard FNMA guides apply. Seller side disbursements are examined closely. All real estate commissions and non lien related expenses (marketing expense, finders fees, referral fees, consulting fees) must not exceed 8% of the sales price. Any combination of these disbursements exceeding 8% will be treated like a sales concession and deducted dollar for dollar from the ales price for purposes of calculating LTV. DP Assistance programs are not permitted Must meet AUS Modified and existing subordinate liens are permitted within the maximum CLTV for the program. A copy of the subordinate Note, Mortgage/Deed and Subordination Agreement is required. Mortgage History Paying Off / Down Debt to Qualify Condominium/PUD COLLATERAL *Fannie Mae 97% restrictions Follow DO/DU Findings Follow DO/DU Findings. Loans with PMI may be further restricted by PMI Company. Paying installment debt down to less than 10 payments to qualify is not allowed 48 Months re-established credit since discharge or dismissal. Less than 48 months considered with extenuating circumstance. Refer to Underwriting A seven-year waiting period is required, and is measured from the completion date of the foreclosure action as reported on the credit report or other foreclosure documents provided by the borrower. A three-year waiting period is permitted if extenuating circumstances can be documented, and is measured from the completion date of the foreclosure action. 1-4 Unit dwellings, Townhomes, Rowhomes, FNMA Approved Condominiums. See section below for other Condo DU/DO limited review permitted. Projects not currently approved by Fannie Mae may be considered for CPM approval. Refer to Underwriting for more CPM information. is required on all loans over 80.00% LTV. Lender paid Monthly or reduced premium MI is not permitted. Financed MI is by exception only contact UW for approval and lockdesk for pricing. Loan is defined as cash-out if the amount exceeds the lesser of $2,000 or 2% of the loan amount. Non purchase money seconds are considered cash out. Previous Note date must greater than 6 months from application date. A refinance of a cashout within 6 months is considered a cash-out. s must be ordered via an approved Allied Mortgage Group Management Company (AMC). s transferred from another lender are not permitted. PIW (Property Inspection Waiver) or s are permitted per DU Tax and Insurance escrows are required on all loans greater than 80.00% LTV Primary Residence: Unlimited number of properties financed; Second Home: Max 4 properties financed including primary; Exceptions considered case-by-case Flip transactions are not permitted. Family transfers/title changes are examined closely. Eligible in all Allied Mortgage Group licensed states. Additional restrictions on ARMS in Louisiana may apply. Texas A6 (equity) not permitted FTHB Only 35% MI coverage Required All Fannie 97% requirements apply. CONVENTIONAL Refinance % must be current fannie owned loan Min Loan size $50k May not be an ARM, required, must be credit qualified, Max 43 DTI on Manual UW, May not waive 3 day right to review appraisal, must be disclosed homeownership counseling disclosure and second appraisal guidelines apply. Code: 1.6

2 OCC PURCHASE Refinance R/T Refinance C/O Up to $417k High Balance Up to $417k High Balance Up to $417k High Balance Fixed/Arm Fixed/Arm Fixed/Arm Fixed/Arm Fixed/Arm Fixed/Arm SFR Detached 97 / / SFR Attached 97 / / Condominium 97 / / Townhouse 97 / / Unit 85 / / Unit 75 / NA - 75 / NA DP Assistance Borrower Eligibility Income Limits Paying down debt to qualify COLLATERAL C30HR, C20HR Home Ready Fixed rate terms up to 30 yrs. High-Balance, adjustable are not permitted Du will notify users if a borrower appears to be eligible for Homeready but the lender has not selected HomeReady. Must resubmit as HomeReady and receive DU Approve/Eligible Findings. Minimum 620, Alternative Credit not permitted. Standard minimum contributions are required. Sweat equity is not allowed on HomeReady Standard FNMA guides apply. Seller side disbursements are examined closely. All real estate commissions and non lien related expenses (marketing expense, finders fees, referral fees, consulting fees) must not exceed 8% of the sales price. Any combination of these disbursements exceeding 8% will be treated like a sales concession and deducted dollar for dollar from the ales price for purposes of calculating LTV. programs are not permitted As required by DU. Can not come from a gift. Not Limited to first time homebuyers. Homeownership education required to be completed PTC for at least one borrower on purchase transactions. Homeownership Counseling can be obtained through any HUD approved counseling agency NO income limits in low income census tracts. 100% of area median income in high minority census tracts. 80% of area median income in all other census tracts. Follow DO/DU Findings. Loans with MI may be further restricted by MI Company. Income from non borrower household member maybe considered by du to determine DTI 45-50% Must contact the scenario desk for exception and must meet MI company guidelines. Paying installment debt down to less than 10 payments to qualify is not allowed 48 Months re-established credit since discharge or dismissal. Less than 48 months considered with extenuating circumstance. Refer to Underwriting Must be settled minimum 48 months preceding application date. Less than 48 months considered with extenuating 1-4 Unit dwellings, Townhomes, Rowhomes, FNMA Approved Condominiums. See section below for other Condo Condominium/PUD Property Other DU/DO limited review permitted. Projects not currently approved by Fannie Mae may be considered for CPM approval. Refer to Underwriting for more CPM information. 25% MI coverage for LTVs %. Standard MI coverage for LTVs of 90% or less. Financed MI is not permitted s must be ordered via an approved Allied Mortgage Group Management Company (AMC). Tax and Insurance escrows are required on all loans Manufactured home not permitted Flip transactions are not permitted. Family transfers/title changes are examined closely. Gift of equity allowed per Fannie Mae Guidelines Eligible in all Allied Mortgage Group licensed states Non Occupant Co-borrowers not permitted Cash on hand is not eligible. Interest Rate Buydowns not permitted. All other Home Ready and Fannie 97% guidelines apply. May not be an ARM, required, must be credit qualified, Max 43 DTI, May not waive 3 day right to review appraisal, must be disclosed homeownership counseling disclosure and second appraisal guidelines apply. Code: 1

3 OCC Type COLLATERAL Purchase Refinance R/T Refinance C/O State Restrictions High Balance FHA SCORE Up to $417k High Balance Up to $417k High Balance Up to $417k High Balance Up to $417k High Balance LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV SFR Detached / 100 NA / 100 NA / / / / 100 SFR Attached / 100 NA / 100 NA / / / / 100 Condominium / 100 NA / 100 NA / / / / 100 Townhouse / 100 NA / 100 NA / / / / Unit / 100 NA / 100 NA / / / / Unit / 100 NA / 100 NA / / / / 100 SFR Detached / NA / NA / / / / SFR Attached / NA / NA / / / / Condominium / NA / NA / / / / Townhouse / NA / NA / / / / Unit / NA / NA / / / / Unit / NA / NA / / / / SFR Detached 85 / 85 NA 85 / 85 NA 85 / / / / 85 SFR Attached 85 / 85 NA 85 / 85 NA 85 / / / / 85 Condominium 85 / 85 NA 85 / 85 NA 85 / / / / 85 Townhouse 85 / 85 NA 85 / 85 NA 85 / / / / 85 2 Unit 85 / 85 NA 85 / 85 NA 85 / / / / Unit 85 / 85 NA 85 / 85 NA 85 / / / / 85 Standard: F15, F25, F30, F5YT High Balance: F30J, F5YTJ Fixed: 15, 25 and 30 Yr; ARM: 5/1 Trsy (High Balance is limited to 30Yr Fixed and 5/1 Arm only) All loans are run through TOTAL Scorecard via Fannie Mae Desktop Originator (DO), Desktop Underwriter (DU) or Loan Prospector (LP). Manual Underwrites/ Manual Downgrades are permitted with 620 score See minimum credit scores above. Lower of 2 or Middle of 3 repositories. NA High Balance loans are permitted with the following restrictions: Minimum 640 score on Purchase and R/T Refinance, Min 660 Score on Cash Out Refinance. 0x30 Mortgage History. Available on 30Yr Fixed and 5/1 Arm only. Refer to FHA published loan limits: Minimum 3.5% downpayment required. Funds may come from Gift or Dowpayment Assistance Program may be used. Non profits must be on Hud's approved list. CLTV is maxed at 100% of acquisition costs Maximum 6% of sales price Downpayment Assistance Programs are acceptable however may not cover the 3.5% downpayment requirement. State bond agencys are exempt from this and State Bond DAP can cover the borrowers 3.5% down payment. DAP not available on High Balance. Mortgage/Rent History Occupancy Paying Down Debt to Qualify Condominium Properties Flips New subordinate financing is permitted on Purchase transactions with Downpayment Assistance only, Max 100 CLTV. Existing subordinate financing is acceptable on refinance transactions to max CLTV published above. 3-4 Unit properties requires 3 months PITIMI. may not come from a gift. Follow DO/DU Findings. 0x30 Mtg last 12 months on Cash Out Refinance transactions. Primary residence only. Follow DO/DU/LP TOTAL Findings. Paying installment debt down to less than 10 payments to qualify is not allowed Minimum 2 Years discharged. Delinquencies since discharge will be scrutinized and may result in an ineligible loan. BK <7Yrs on High Balance Cash Out is ineligible. Minimum 3 Years discharged. Delinquencies since discharge will be scrutinized and may result in an ineligible loan. No previous FC on High Balance Cash Out. 1-4 Unit dwellings, Townhomes, Rowhomes, FHA Approved Condominiums. See section below for other Condo. 2-4 units in NJ are ineligible. Must be located in a FHA Approved Condominium project Refer to MIP Matrix Loan is defined as cash-out if the amount $500. Non-Occupant co-borrowers may not be added to a cash out transaction. May pay off first and second mortgage's (regardless of purchase money or not) if seasoned > 12 months. Helocs must have no draws over $1000 (cumulative) in past 12 months. s must be ordered via an approved Allied Mortgage Group Management Company (AMC). Not available. Full s are required. Escrow of Tax, Insurance and MIP are required on all loans. Loans listed for sale at time of application are ineligible on refinance transactions. Flips are measured from the date the seller took possession (date deed was executed) of the property to the date on buyers sales contract. No restrictions >180 days days: Second required if resale price 100% or more over the price paid by the seller. Less than 90 days: must comply with FHA's flip provisions detailed in h or Flip waiver 24 CFR a(b)(2). Layered Risk Max 4 properties financed including primary. Permitted however, some restrictions may apply if property is flipped <90 days. Eligible in all Allied Mortgage Group licensed states. Additional restrictions on ARMS in Louisiana may apply. Texas A6 (equity) not permitted May not be an ARM, required, must be credit qualified, Max 43 DTI, May not waive 3 day right to review appraisal, must be disclosed homeownership counseling disclosure and second appraisal guidelines apply. FHA's TOTAL Scorecard does not capture every conceivable scenario related to the potential for layered risk. Allied Direct Endorsed Underwriter may require additional documentation for consideration. Note: an example of layered risk would be gift for downpayment, high dti, low score, low residual income. Code: 5.6

4 OCC Type COLLATERAL FHA STREAMLINE SCORE Up to $417k High Balance Up to $417k High Balance Up to $417k High Balance Up to $417k High Balance LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV * Refinance R/T (Streamline) SFR Detached / 125 NA / / / / / / 125 SFR Attached / 125 NA / / / / / / 125 Condominium / 125 NA / / / / / / 125 Townhouse / 125 NA / / / / / / Unit / 125 NA / / / / / / Unit / 125 NA / / / / / / 125 High Balance Assets Mortgage/Rent History Occupancy Condominium Properties Flips Ineligible Program Layered Risk Standard: F15S, F30S, F5YTS High Balance: F30JS, F5YTJS Fixed: 15, 25 and 30 Yr; ARM: 5/1 Trsy (High Balance is limited to 30Yr Fixed and 5/1 Arm only) Manually Underwritten. AUS is not run. See minimum credit scores above. Lower of 2 or Middle of 3 repositories. High Balance loans are permitted with the following restrictions minimum 640 score. Bank Statements must be obtained for funds needed to close Not Applicable on FHA Streamline transactions Not Applicable on FHA Streamline transactions Existing subordinate financing is acceptable on refinance transactions to max CLTV published above. Not Applicable on FHA Streamline transactions 0x30 Mtg last 12 months. Minimum 6 payments must have been made to qualify for Streamline with 0x30 for all payments. Non owner occupied allowed. Max loan amount is unpaid prinicple balance only (no interest) Max 31/43 DTI. Minimum 2 Years discharged. Delinquencies since discharge will be scrutinized and may result in an ineligible loan. BK <7Yrs on High Balance Cash Out is ineligible. Minimum 3 Years discharged. Delinquencies since discharge will be scrutinized and may result in an ineligible loan. No previous FC on High Balance Cash Out. 1-4 Unit dwellings, Townhomes, Rowhomes, FHA Approved Condominiums. See section below for other Condo. 2-4 units in NJ are ineligible. Must be located in a FHA Approved Condominium project Refer to MIP Matrix Cash out is not permitted. Incidental Cash Out may not exceed $250 Appraised value is derived from Refinance Authorization Not Applicable on FHA Streamline transactions Escrow of Tax, Insurance and MIP are required on all loans. Loans listed for sale at time of application are ineligible on refinance transactions. Not Applicable on FHA Streamline transactions given the minimum 6 month seasoning requirement. Max 4 properties financed including primary. Not Applicable on FHA Streamline transactions Eligible in all Allied Mortgage Group licensed states. Additional restrictions on ARMS in Louisiana may apply. CEMA's in NY are not eligible May not be an ARM, required, must be credit qualified, Max 43 DTI, May not waive 3 day right to review appraisal, must be disclosed homeownership counseling disclosure and second appraisal guidelines apply. Allied Direct Endorsed Underwriter may require additional documentation for consideration. Note: an example of layered risk would be gift for downpayment, high dti, low score, low residual income. Code: 5.6

5 OCC Investment Second Home COLLATERAL FANNIE MAE DU REFI PLUS (HARP - DURP) Refinance R/T (DURP) Up to $417k High Balance Fixed Fixed SFR Detached SFR Attached Condominium Townhouse Unit Unit SFR Detached SFR Attached Condominium Townhouse Unit Unit - - SFR Detached SFR Attached Condominium Townhouse Unit Unit HIGHLIGHTS LTV's up to 150% Existing OK Loans with PMI OK waivers may be permitted per DU Benefit Requirement FNMA Eligibility Income Requirements Up to 105 LTV: C10RP, C15RP, C20RP, C30RP, High Balance: C30JRP > LTV: C15RP105, C20RP105, C30RP105, High Balance: C30JRP105 Greater than 125 LTV: C15RP125, C20RP125, C30RP125, High Balance: C30JRP125 Fixed: 10, 15, 20, 25 and 30 Yr. Loan must be run through Fannie Mae DO/DU with 'Approve/Eligible' findings. Manual Underwriting is not permitted. Minimum 620 score New loan must be to a more stable product. Defined as: 1) Reduction in Interest Rate, 2) Arm to Fixed, 3) IO to Fixed, 4) Arm to Arm as long as new loan has a fixed period of 5 years or more and has a fixed period greater than the existing fixed period remaining. Loan must be currently owned by Fannie Mae. Loan lookup Follow AUS Follow AUS Mortgage History Must be current at time of application, no Mtg delinquency in the last 6 months, max 1x30 months 7-12 Follow DO/DU Findings Condominium/PUD Borrower Requirements New subordinate financing is not permitted. Existing subordinate financing is permitted but must re-subordinate to the new loan. CLTV is unlimited. Follow Fannie Mae Guidelines Permitted within agency guidelines 1-4 Unit dwellings, Townhomes, Row Homes and Condominiums. Must certify not a condotel, Insurance in place must meet Fannie requirements. Same level of coverage on existing loan or standard coverage per DU. Must use same PMI provider. LPMI (lender paid) not permitted. Cash out is not permitted. No more than $250 incidental cash to borrower. s must be ordered via an approved Allied Mortgage Group Management Company (AMC). s transferred from another lender are not permitted. PIW's are permitted, see section below. PIW (Property Inspection Waiver) or s are permitted per DU Tax and Insurance escrows are required on all loans that require PMI. may only be waived if previous loan had no escrows. are required on all High Balance. No Maximum Eligible in all Allied Mortgage Group licensed states. Additional restrictions on ARMS in Louisiana may apply. Texas A6 (equity) not permitted May not be an ARM, required, must be credit qualified, Max 45 DTI, May not waive 3 day right to review appraisal, must be disclosed homeownership counseling disclosure and second appraisal guidelines apply. Code: 1.5

6 OCC Investment Second Home COLLATERAL FREDDIE MAC LP OPEN ACCESS (LPOA) Refinance R/T (DURP) Up to $417k High Balance Fixed/Arm Fixed/Arm SFR Detached 150 / / 105 SFR Attached 150 / / 105 Condominium 150 / / 105 Townhouse 150 / / Unit 150 / / Unit 150 / / 105 SFR Detached 150 / / 105 SFR Attached 150 / / 105 Condominium 150 / / 105 Townhouse 150 / / Unit Unit - - SFR Detached 150 / / 105 SFR Attached 150 / / 105 Condominium 150 / / 105 Townhouse 150 / / Unit 150 / / Unit 150 / / 105 HIGHLIGHTS LTV's up to 150% Existing OK Loans with PMI OK Benefit Requirement Freddie Mac Eligibility Income Requirements Fixed: 10, 15, 20, and 30 Yr ARMs not Offered Loans must be run through Loan Prospector (LP) and receive an 'Accept' Finding. Manual Underwriting is not permitted. Minimum 620 score, Minimum 660 score on second home/investment properties New loan must be to a more stable product. Defined as: 1) Reduction in Interest Rate, 2) Amortization Term Reduction, 3) Arm to Fixed, 4) IO to Fixed, 5) Reduction in P&I Payment Loan must be currently owned by Freddie Mac. Loan lookup YTD paystub documenting at least 30 days of income and Verbal VOE dated no more than 10 prior to the Note Date. See Freddie Mac guides in chapter B24.3 for additional details and requirements. Must meet AUS New subordinate financing is not permitted. Existing subordinate financing is permitted but must re-subordinate to the new loan. Proceeds from an existing subordinate lien may not be used to paid down existing first lien UPB or any cost associated with the new financing. CLTV is unlimited' Mortgage History Must be current at time of application, no Mtg delinquency in the last 6 months, max 1x30 months 7-12 Max 60% back ratio Condominium/PUD Borrower Requirements Fee Restrictions Up to 105 LTV: C10OA, C15OA, C20OA, C30OA, High Balance: C30JOA > LTV: C15OA105, C20OA105, C30OA105, High Balance: C30JOA105 Greater than 125 LTV: C15OA125, C20OA125, C30OA125, High Balance: C30JOA125 Not permitted Not permitted 1-4 Unit dwellings, Townhomes, Row homes and Condominiums. No further review is required Same level of coverage on existing loan or standard coverage per DU. Must use same PMI provider. LPMI (lender paid) not permitted. Cash out is not permitted. No more than $250 incidental cash to borrower. s must be ordered via an approved Allied Mortgage Group Management Company (AMC). s transferred from another lender are not permitted. HVE value from initial LP cert may be used on 1-2 unit properties with HVE deviation < units or deviation >.20 require new, full appraisal. Tax and Insurance escrows are required on all loans that require PMI. may only be waived if previous loan had no escrows. Listing must be cancelled. No Seasoning requirement. One of the original borrowers may be added or removed however, at least of the original borrowers must remain on the new loan. Non-occupying co-borrowers are not permitted. Proceeds are to payoff first mortgage UPB and Interest accrued through the date of the mortgage being refinanced is paid off. May pay related Closing Costs, Financing Costs and Prepaids/ not to exceed $5,000. No Maximum Eligible in all Allied Mortgage Group licensed states May not be an ARM, required, must be credit qualified, Max 45 DTI, May not waive 3 day right to review appraisal, must be disclosed homeownership counseling disclosure and second appraisal guidelines apply. Code: 2.5.7

7 OCC Type COLLATERAL SCORE Up to $417k High Balance Up to $417k High Balance Up to $417k High Balance Up to $417k High Balance LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV SFR Detached 100 / / 100 *100 / / 100 *100 / / 100 *100 / 100 SFR Attached 100 / / 100 *100 / / 100 *100 / / 100 *100 / 100 Condominium 100 / / 100 *100 / / 100 *100 / / 100 *100 / 100 Townhouse 100 / / 100 *100 / / 100 *100 / / 100 *100 / Unit 100 / / 100 *100 / / 100 *100 / / 100 *100 / Unit 100 / / 100 *100 / / 100 *100 / / 100 *100 / 100 SFR Detached 100 / / 100 *100 / / 100 *100 / / 100 *100 / 100 SFR Attached 100 / / 100 *100 / / 100 *100 / / 100 *100 / 100 Condominium 100 / / 100 *100 / / 100 *100 / / 100 *100 / 100 Townhouse 100 / / 100 *100 / / 100 *100 / / 100 *100 / Unit 100 / / 100 *100 / / 100 *100 / / 100 *100 / Unit 100 / / 100 *100 / / 100 *100 / / 100 *100 / 100 SFR Detached '100 / / 100 *100 / / 100 *100 / / 100 *100 / 100 SFR Attached '100 / / 100 *100 / / 100 *100 / / 100 *100 / 100 Condominium '100 / / 100 *100 / / 100 *100 / / 100 *100 / 100 Townhouse '100 / / 100 *100 / / 100 *100 / / 100 *100 / Unit '100 / / 100 *100 / / 100 *100 / / 100 *100 / Unit '100 / / 100 *100 / / 100 *100 / / 100 *100 / 100 *Note: LTV may be further restricted base on available Entitlement and Cash down/equity. See VA Guaranty section below VA Guaranty Purchase Refinance R/T Refinance C/O High Balance Residual Requirements VA Standard: V15, V20, V25, V30, V5YT High Balance: V30J, V5YTJ Fixed: 15, 25 and 30 Yr; ARM: 5/1 Trsy (High Balance is limited to 30Yr Fixed and 5/1 Arm only) Fannie Mae Desktop Originator DO or Desktop Underwriter DU Approve Eligible. Manual underwrites are permitted must follow VA Guidelines, manual ratios and increased residual requirements (below) The VA Guaranty plus cash/equity must be equal to at least 25% of the purchase price or Notice of Value (NOV), whichever is less. See minimum credit scores above. Lower of 2 or Middle of 3 repositories. High Balance loans are permitted with the following restrictions. LTV restrictions may apply based on available entitlement, equity/cash down. Loan limits may be via: No downpayment required at 100 LTV financing. Permitted on all allowable VA fees plus maximum 4% of sales price Downpayment Assistance Programs are acceptable however, source must be a Government Entity (Non Profit are not permitted). DAP not available on High Balance. New subordinate financing is permitted on Purchase transactions with Downpayment Assistance only, Max 100 CLTV. Existing subordinate financing is acceptable on refinance transactions to max CLTV published above. As per VA guidelines All Va Loans must meet residual requirements as per VA guidelines. Manual UW and loans with DTI > 41% must meet 120% of residual income and >45% must meet 150% of required residual income. Mortgage/Rent History Must meet AUS Occupancy Primary residence only. Max DTI as per AUS approval, Manual UW is 43% Minimum 2 Years discharged. Delinquencies since discharge will be scrutinized and may result in an ineligible loan. Condominium Properties Flips Minimum 2 Years discharged. Delinquencies since discharge will be scrutinized and may result in an ineligible loan. 1-4 Unit dwellings, Townhomes, Rowhomes, VA Approved Condominiums. Must be located in a VA Approved Condominium project. Refer to MIP Matrix Debt Consolidation is considered cash out. Cash out is unlimited up to 100 LTV. s are order via WebLGY Portal. Allied Mortgage SAR will issue NOV. Not available. Full s are required. Taxes and Insurance are required. Loans listed for sale at time of application are ineligible on refinance transactions. No Special restrictions on flips however, appreciation of more than 20% within a 90 day period (acquisition by seller to contract date by the buyer) may be reviewed with more caution and additional requirements and/or inspections may be required. Max 4 properties financed including primary. Permitted however, some restrictions may apply if property is flipped <90 days. Eligible in all Allied Mortgage Group licensed states. Additional restrictions on ARMS in Louisiana may apply. May not be an ARM, required, must be credit qualified, Max 45 DTI, May not waive 3 day right to review appraisal, must be disclosed homeownership counseling disclosure and second appraisal guidelines apply. Code: 5.6

8 Type OCC COLLATERAL Refinance R/T (IRRRL) VA Guaranty High Balance Mortgage/Rent History Occupancy Second Home Investment Condominium Properties Flips Recoup Policy VA IRRRL SCORE Up to $417k High Balance Up to $417k High Balance Up to $417k High Balance Up to $417k High Balance LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV LTV/CLTV SFR Detached 115 / Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited SFR Attached 115 / Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Condominium 115 / Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Townhouse 115 / Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited 2 Unit 115 / Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited 3-4 Unit 115 / Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited SFR Detached 115 / / / / / / / 150 SFR Attached 115 / / / / / / / 150 Condominium 115 / / / / / / / 150 Townhouse 115 / / / / / / / Unit 115 / / / / / / / Unit 115 / / / / / / / 150 SFR Detached 115 / / / / / / / 150 SFR Attached 115 / / / / / / / 150 Condominium 115 / / / / / / / 150 Townhouse 115 / / / / / / / Unit 115 / / / / / / / Unit 115 / / / / / / / 150 Standard: V15S, V25S, V30S, V5YTS High Balance: V30JS, V5YTJS Fixed: 15, 25 and 30 Yr; ARM: 5/1 Trsy (High Balance is limited to 30Yr Fixed and 5/1 Arm only) Manually Underwritten. AUS is not run. IRRRL transaction are not subject to any additional entitlement requirements. See minimum credit scores above. Lower of 2 or Middle of 3 repositories. High Balance loans are permitted however max base loan amount before funding fee is $1,000,000 Existing subordinate financing is acceptable to max CLTV published above. Max 0x30 previous 12 months. VA loan being paid off must be seasoned minimum 6 months. Seasoning is measured from the date existing loan closed to the closing date of new loan. Primary residence. Non Primary residence may be permitted per VA guidelines. If subject is not currently a primary residence then borrower must certify that they previously occupied the residence. Minimum 2 Years discharged. Delinquencies since discharge will be scrutinized and may result in an ineligible loan. Minimum 2 Years discharged. Delinquencies since discharge will be scrutinized and may result in an ineligible loan. 1-4 Unit dwellings, Townhomes, Rowhomes, Condominiums. No additional Condominium requirements on VA IRRRL transactions IRRRL Funding Fee.50% Cash out is not permitted on VA IRRRL transactions. Max incidental cash out is limited to $250. No AVM required with 620+ Score and. Corelogic AVM (or Industry Standard AVM) or 2055 appraisal required <620 Score and/or Non Primary Residence. LTV allowed on Grid above based on AVM or Refer to requirements for additional Information. Taxes and Insurance are required. Loans listed for sale at time of application are ineligible on refinance transactions. Max 4 properties financed including primary. Eligible in all Allied Mortgage Group licensed states. Additional restrictions on ARMS in Louisiana may apply. Not permitted All closing costs and discount points (excludes prepaids) must be recouped from monthly savings in a 36 month period or less unless reducing term. If reducing term payment can not increase by more than 20% Code:

9 OCC Score Collateral LTV/CLTV 720 SFR Attached, SFR Detached, Townhouse, PUD Condo SILVER JUMBO (Non Conforming) PURCHASE Refinance R/T Cash Out Refi* Fixed 5/1 Arm 7/1 Arm 10/1 Arm Fixed 5/1 Arm 7/1 Arm 10/1 Arm Market Class ,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000, ,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 1,500, ,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 1,500,000 1,500,000 1,500, ,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000, ,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000, ,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000, ,000,000 2,000,000 2,000,000 1,500, ,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 1,500,000 1,500,000 1,500, ,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500, ,000,000-1,000,000 1,000,000 1,000,000-1,000,000 1,000, MEDIAN HOME PRICE (MHP) NOTE: *Cash Out RATE REDUCTION SPECIAL Credit Requirements Credit Requirements (Charge-offs) Credit Requirements (Other) First Time Homebuyers (FTHB) Free and Clear Properties Mortgage History (BK) (FC) Condominium/PUD Number of Properties Owned When the loan amount exceeds the Median Home Price (MHP) in the subjects property county by 10X or more, the MAX 70 LTV/CLTV. EXAMPLE: [MHP = $106,000, Loan Amount = $1,400,000], $1,400,000 / $106,000 = $13.21%, MAX 70 LTV *cash out is limited to $400,000 cash in hand for >65% ltv and $500,000 for < 65% LTV. Max loan size is determined by LTV and Market Class 25BPS Rate reduction with ACH enrollment to Wells Fargo's Preferred Payment Plan tm N10, N20, N30, N5YL, N7YL and N10YL Fixed: 10, 15, 20, and 30 Yr; ARM: 5/1 LIBOR, 7/1 LIBOR, 10/1 LIBOR, Margin: 2.25, Caps: 2/2/5 Non Conforming lender approval required. Loans are not submitted to DU/LP. Allied Underwriting will reissue credit and run Direct Express Findings after file submission. If a reissue option is not available then Allied will pull new credit and run findings. 'Accept' findings are required, 'Review' Findings may be considered case-by-case. Findings are not considered automatically approved and other loan attributes will be evaluated in addition to Direct Express. Credit will be pulled by Allied Underwriting using Direct Express Credco or Equifax. Minimum score must be 720. Qualifying score is middle of three. If Coborrower exists, use lowest qualifying score of all borrowers. Individual unpaid charge-offs less than $500 is allowed with no requirement to pay off. Individual unpaid charge-offs more than $500 is not permitted. Accounts may not be paid down to less than 10 months for qualification purposes. Paying off revolving accounts for purposes of qualification is not permitted. Entire downpayment may come from borrowers own account or gift. Funds must be sourced and seasoned two recent consecutive months. Closing costs must be borrowers own funds. Seller Assited programs are not permitted. ICP is allowed per Fannie Mae guidelines Downpayment Assistance Programs are not permitted Permitted Cash-Out transactions are not permitted therefore, Not Applicable. Post Closing Liquidity (PCL): Loan amount up to $2,000,000 = 12 Months PITI, >$2,000,000 to $4,000,000 = 24 Months PITI, > $4,000,000 = 36 Months PITI. New and existing Subordinate financing is permitted. See max CLTV in matrix above. HELOC's use line amount versus line balance for CLTV calculation. Mortgage/Rent 0x30 24 months. If applicable, Insitutional VOR or cancelled checks required. Max 36/40 DTI. Arm Qualification- 5/1 Arms: Use the higher of Fully Indexed (Index + Margin) or Initial Note Rate plus two percent; 7/1 and 10/1 Arms: Use the higher of Fully Indexed (Index + Margin) or Initial Note Rate. Max 70LTV if BK was due to extenuating circumstances and minimum 60 months of reestablsihed credit since discharge/dismissal/completion date. Max 70LTV if FC was due to extenuating circumstances and minimum 60 months of reestablsihed credit since discharge/dismissal/completion date. 1 Unit Single Family (attached or detached) and PUDS (attached or detached), Warrantable Condos (project must have >10 units) and 2 Units Properties. Condominiums must be warrantable. Limited Review acceptable. Not Required is not permitted. Cash out is defined as cash-in-hand greater than $1,000. s must be ordered from RESDirect at and must be a RELS valuation product. One Full appraisal is required regardless of LTV and Loan Amount. Residential Valuation Service (RVS) is required in addition to the full appraisal when loan amount is greater than $1,000,000 and LTV is greater than 70. RVM is also be required when the MHP is greater than 10% and loan amount is greater than $1,000,000. s are good for 120 days. New appraisal is required after 120 days, recert is not permitted. Max LTV is reduced by 5% in markets defined as declining by the appraiser. Not available Optional Properties must not be listed for sale on refinance transactions Maximum 4 properties owned. See reserve section for special requirements when financing on all properties owned by borrower(s) exceed $3,000,000 Not Permitted Eligible in all Allied Mortgage Group licensed states May not be an ARM, required, must be credit qualified, Max 45 DTI, May not waive 3 day right to review appraisal, must be disclosed homeownership counseling disclosure and second appraisal guidelines apply. Code: 4

10 OCC Type COLLATERAL SCORE 620+ Up to $417k High Balance LTV/CLTV LTV/CLTV SFR Detached 100 / 100 NA SFR Attached 100 / 100 NA Condominium 100 / 100 NA Townhouse 100 / 100 NA 2 Unit NA NA 3-4 Unit NA NA Note: LTV is derived from Base loan amount (before Guarantee Fee). Max LTV when Guarantee Fee is financed High Balance Refinance Mortgage/Rent History Occupancy Purchase/Refi Condominium Properties Flips USDA RURAL HOUSING Standard: U30 High Balance: Not offered Fixed: 30 Yr only All loans are run through GUS (Guaranteed Underwriting System). Manual Underwrites allowed with 640 score. ZERO DOWN PAYMENT See minimum credit scores above. Lower of 2 or Middle of 3 repositories. Not Offered. No minimum downpayment required Maximum 6% of sales price Borrowers who choose to pay a downpayment may use a Government or Municipal Downpayment Assistance Program (DAP). Not Permitted. Full Refinance Requires New (Base loan amount can not exceed 100%) Payoff First mortgage, closing costs/prepaids. (no cash out) Ratios are capped at 29/41% but can request waiver from usda with Strong Compensating factors (not to exceed 50%) Appraised value may be exceeded to finance the up/front guarantee fee Streamline No Ratios are capped at 29/41% with no exceptions Loan amount will be principal balance plus interest on the payoff (no cash out) All refi's - Property must already be encumbered with USDA Guaranteed Mortgage. Must be seasoned 12 months 0x30 and have NTB of $50 per month in PITI and interest rate must be lower than current rate Follow GUS Findings. Primary residence only. Must maintain Gus Accept Findings Minimum 2 Years discharged if a result of extenuating circumstances. Minimum 3 Years discharged if a result of financial mismanagement. Multiple Bankruptcies are not permitted. Minimum 3 Years discharged. Delinquencies since discharge will be scrutinized and may result in an ineligible loan. Single Family Attached and Detached, Condo, PUD. Condominium must be currently approved by Fannie Mae, Freddie Mac, VA or HUD (FHA). See MI Matrix Not applicable. Program is available on Purchase Transactions only. Full is required. s must be ordered via an approved Allied Mortgage Group Escrow of Tax, Insurance and MIP are required on all loans. Property must not be listed for sale in previous 6 months Flip transactions are not eligible Borrower may only own additional property however the other property must be deemed inadequate (increased family size, family needs, safety hazards) or other property must be more than 50 miles away from the subject property. Must be an Arms Length transaction. Eligible in all Allied Mortgage Group licensed states. Permitted with max 43 DTI, may not waive 3 day right to review appraisal, must be disclosed homeownership counseling disclosure and second appraisal guidelines apply. Code: 4

11 Matrix (FHA/VA/USDA) FHA MIP Loan Amount Insurance Type Loan Terms LTV Product UFMIP All Loan Terms All Loan-to-Values Streamline Refinance endorsed ON OR BEFORE LTV > 95.00% Streamline Refinance endorsed ON OR BEFORE > 15Yr Terms LTV <= 95.00% Streamline Refinance endorsed ON OR BEFORE <= $625,500 Annual (Monthly LTV > 90.00% Streamline Refinance endorsed ON OR BEFORE MIP) <= 15Yr Terms LTV % Streamline Refinance endorsed ON OR BEFORE LTV <= 78.00% Streamline Refinance endorsed ON OR BEFORE Case Number Assignment Date from to current > $625,500 UFMIP All Loan Terms All Loan-to-Values Streamline Refinance endorsed ON OR BEFORE LTV > 95.00% Streamline Refinance endorsed ON OR BEFORE > 15Yr Terms LTV <= 95.00% Streamline Refinance endorsed ON OR BEFORE Annual (Monthly LTV > 90.00% Streamline Refinance endorsed ON OR BEFORE MIP) <= 15Yr Terms LTV % Streamline Refinance endorsed ON OR BEFORE LTV <= 78.00% Streamline Refinance endorsed ON OR BEFORE VA FUNDING FEE Type of Veteran Type of Veteran LTV First Time Use Subsequent Use LTV up to 90.00% FUNDING FEE NOTES Purchase Refinance Regular Military / National Guard Regular Military All LTV's / National Guard LTV % LTV Greater than 95.00% LTV up to 90.00% LTV % LTV Greater than 95.00% All LTV's Entitlement plus equity must be equal to at least 25%. * All or part of the fee may be paid in cash at closing or may be included in the loan amount without regard to the maximum calculated loan amount. Loan amounts >$417,000: If the combined loan amount plus the funding fee exceeds the county limit then that portion of the funding fee that exceeds the county limit may not be financed. * Funding Fee waivers may be made to Veterans with service connected disabilities. And to surviving spouses of veterans who have died in service or from service connected disabilities. USDA GUARANTEE FEE USDA Commitment Date Monthly Up Front Guarantee Fee USDA Commitment before 10/1/14: 0.40% 2.75% USDA Commitment 10/1/14 thru 9/30/16: 0.50% 2.75% USDA Commitment on or after 10/1/16: 0.35% 1.00%