Section Agency Loan Programs

Transcription

1 Section Agency Loan Programs In This Product Description This product description contains the following topics. Overview... 3 Product Summary... 3 Related Bulletins... 4 Loan Terms... 5 Minimum Loan Amount... 5 Maximum Loan Amount... 5 Agency Maximum LTV/TLTV/ HTLTV Ratio Requirements... 6 Agency Plus Maximum LTV/TLTV/ HTLTV Ratio Requirements... 9 ARM Change Date Charts ARM Disclosures ARM Parameters Assumptions Interest Only Parameters Multiple Financed Properties for the Same Borrower Ability-to-Repay and Qualified Mortgage General Eligible Transactions Calculation of LTV/TLTV/HTLTV Ratios Construction Lending Single Closings Construction Lending Two-Closings Installment Land Contract Maximum Allowable Points and Fees Non-Arm s Length Transactions Property Assessed Clean Energy (PACE) Loans Validation of Parties to the Mortgage Transaction Refinances Continuity of Obligation Cash-out Refinance Delayed Financing Cash-Out Refinance Home Improvements Limited Cash-Out Refinance (LP Terminology: No Cash Out Refinance ) Refinance of a Restructured Mortgage Loan Spousal/Partner Buy-Out and Inherited Properties Secondary Financing Community Seconds (Fannie Mae) / Affordable Seconds (Freddie Mac) Home Equity Lines (HELOCS) Geographic Restrictions Occupancy/Property Types Primary Residences Second Homes Investment Properties Condominiums PUDs Leasehold Estates Manufactured Housing Mixed-Use Properties Modular, Prefabricated, Panelized, or Sectional Housing Properties Listed For Sale Ineligible Properties Eligible Borrowers Permanent Resident Aliens Non-Permanent Resident Aliens Homeownership Education and Housing Counseling Living Trust (Inter Vivos Trust) Non-Occupant Borrowers Co-Signers and Guarantors Ineligible Borrowers Income Agency Loan Programs Page 1 of 410

2 General Income Information Bonus and Overtime Income Commission Income Temporary Leave and Short-term Disability Income Employment Offers or Contracts Mortgage Credit Certificates Rental Income Retirement, Government Annuity, and Pension Income Salaried or Hourly Wage Income Self-Employed Borrower Income Social Security Income Liabilities and Qualifying Ratios Job Related Expenses (Unreimbursed Employee Business Expenses) Student Loans Qualifying Rates Qualifying Ratios Credit Requirements Bankruptcies Foreclosures Deed-in-Lieu of Foreclosure Short Sales Collections and/or Non-Mortgage Charge-Offs Credit Score Requirements Traditional Credit History Authorized User Accounts Non-Traditional Credit History Cash Requirements Minimum Borrower Contribution Requirements Cash Reserve Requirements Gifts Gifts of Equity Large Deposits Interested Party Contributions (IPCs) Temporary Interest Rate Buydowns Mortgage Insurance Appraisal Requirements General Appraisal Age and Use Requirements Upgrading an Appraisal Fannie Mae s DU Property Inspection Waiver (PIW) Leasehold Estates Properties Affected by a Disaster Underwriting the Borrower Rates, Points and Lock-ins CRA Incentive and Verification Application and Consumer Compliance Loan Submission and Underwriting Closing and Loan Settlement Documentation General Borrowers Signatures on Notes Borrowers Signatures on Security Instruments Closing Legal Documents Miscellaneous Forms Document Warranties Document Review Fee Escrow Accounts and Escrow Waivers Leasehold Estates Life Estate Tenancy Living Trust (Inter Vivos Trust) Power of Attorney Principal Curtailments Settlement Agent and/or Company Eligibility Agency Loan Programs Page 2 of 410

3 Overview Product Summary This product description is designed to provide information on SunTrust Mortgage s standard Agency and Agency Plus loan programs. Standard Agency loan programs are offered through traditional underwriting, Fannie Mae s Desktop Underwriter (DU) and Freddie Mac s Loan Prospector (LP). The Agency Plus loan program is offered through Fannie Mae s DU and Freddie Mac s LP underwriting options only. The underwriting guidelines allow for various scenarios in evaluating a borrower s willingness and capacity to repay the mortgage loan. During the underwriting process: confirm that information provided by the borrower during the loan application process is accurate and complete; include documentation in the loan file that supports the assessment of the borrower s credit history, employment and income, assets, and other financial information used for qualifying; conduct a comprehensive risk assessment of each mortgage loan application; and render a decision to either approve or decline the mortgage loan application, regardless of AUS findings. Unless otherwise stated, the guidelines outlined in this product description apply for both standard Agency and Agency Plus loan transactions. Fannie Mae Loan Programs This product description provides product guidelines and requirements for the following Fannie Mae loan programs: Agency: Fully Amortizing Fixed Rate, and Fully Amortizing 3/1, 5/1, 7/1 & 10/1 LIBOR ARMs. Agency Plus: Fully Amortizing Fixed Rate, and Fully amortizing 5/1, 7/1, and 10/1 LIBOR ARMs. All DU processed loans must receive a DU Approve/Eligible recommendation. Freddie Mac Loan Programs This product description provides product guidelines and requirements for the following Freddie Mac loan programs: Agency: Fully Amortizing Fixed Rate, and Fully Amortizing 3/1, 5/1, 7/1 & 10/1 LIBOR ARMs. Agency Plus: Fully Amortizing Fixed Rate, and Fully Amortizing 5/1, 7/1, and 10/1 LIBOR ARMs. 5/1 ARMS with 5/2/5 caps are not eligible for LP loans. These transactions are eligible for non-aus and DU loans. 5/1 ARMs with 2/2/5 caps are eligible for all loans. All LP processed loans must receive an LP Accept/Eligible recommendation. Agency Loan Programs Page 3 of 410

4 Related Bulletins General Related bulletins are provided below in PDF format. To view the list of published bulletins, select the applicable year below Agency Loan Programs Page 4 of 410

5 Loan Terms Minimum Loan Amount Agency There is no minimum loan amount. Agency Plus $417,001 for one unit properties $533,851 for two unit properties $645,301 for three unit properties $801,951 for four unit properties Note: For Agency Plus loans, the minimum loan amount is always one ($1) dollar above the standard Agency conforming loan amount for one to four unit properties. Maximum Loan Amount Agency $417,000 for one unit properties $533,850 for two unit properties $645,300 for three unit properties $801,950 for four unit properties Agency Plus Agency Plus loans are available ONLY in high cost areas (as defined by HUD). For specific loan limits for each high-cost area, as released by the Federal Housing Finance Agency, click here to visit their conforming loan limits page. The maximum loan amount will vary based on the location of the subject property; however, will NEVER exceed: $625,500 for one unit properties, $800,775 for two unit properties, $967,950 for three unit properties, and $1,202,925 for four unit properties. Note: Four-unit property transactions with loan amounts greater than $1,000,000 must be processed through DU. Loan amounts greater than $1,000,000 are not eligible for processing through LP. Agency Loan Programs Page 5 of 410

6 Loan Terms, Continued Agency Maximum LTV/TLTV/ HTLTV Ratio Requirements Primary Residence Purpose # of Units Purchase Limited Cash-Out Refinance (Rate/ Term) Cash-Out Refinance Agency Primary Residence Fixed Rate Terms: Years LTV/TLTV/HTLTV LTV/TLTV/HTLTV for for Non-AUS Loans 95%/95% 1 /95% 85%/85% 1 /85% 75%/75% 1 /75% 75%/75% 1 /75% 95%/95% 1 /95% 85%/85% 1 /85% 75%/75% 1 /75% 75%/75% 1 /75% 80%/80%/80% 75%/75%/75% 75%/75%/75% 75%/75%/75% DU Loans 97% 3 /97% 1, 2, 3 /97% 3 85%/85% 1 /85% 75%/75% 1 /75% 75%/75% 1 /75% 97% 4 /97% 1, 2, 4 /97% 4 85%/85% 1 /85% 75%/75% 1 /75% 75%/75% 1 /75% 80%/80%/80% 75%/75%/75% 75%/75%/75% 75%/75%/75% LTV/TLTV/HTLTV for LP Loans 95%/95%/95% 80%/80%/80% 80%/80%/80% 80%/80%/80% 95%/95%/95% 80%/80%/80% 80%/80%/80% 80%/80%/80% 80%/80%/80% 75%/75%/75% 75%/75%/75% 75%/75%/75% 1 The TLTV may exceed the limits stated above up to 105% only if the mortgage is part of a Community Seconds transaction. 2 If the mortgage is part of a Community Seconds transaction and the LTV is 95% or less: (1) at least one borrower is not required to be a first-time homebuyer; and/or (2) Fannie Mae is not required to be the owner of the existing mortgage. 3 For purchase transactions with LTV/TLTV/HTLTV ratios greater than 95%, at least one borrower must be a first-time homebuyer. 4 For limited cash out refinances with LTV/TLTV/HTLTV ratios greater than 95%, Fannie Mae must be the owner of the existing mortgage. Agency Primary Residence 3/1, 5/1, 7/1, and 10/1 LIBOR ARMs Terms Years for 3/1, 5/1, and 7/1 ARMs; Years for 10/1 ARMs Purpose # of Units LTV/TLTV/HTLTV for Non-AUS Loans LTV/TLTV/HTLTV for DU Loans LTV/TLTV/HTLTV for LP Loans 1 Purchase Limited Cash-Out Refinance (Rate/ Term) Cash-Out Refinance %/90%/90% 75%/75%/75% 65%/65%/65% 65%/65%/65% 90%/90%/90% 75%/75%/75% 65%/65%/65% 65%/65%/65% 75%/75%/75% 65%/65%/65% 65%/65%/65% 65%/65%/65% 1. 5/1 ARMs with 5/2/5 caps are not eligible for LP loans. 90%/90%/90% 75%/75%/75% 65%/65%/65% 65%/65%/65% 90%/90%/90% 75%/75%/75% 65%/65%/65% 65%/65%/65% 75%/75%/75% 65%/65%/65% 65%/65%/65% 65%/65%/65% 95%/95%/95% 80%/80%/80% 80%/80%/80% 80%/80%/80% 95%/95%/95% 80%/80%/80% 80%/80%/80% 80%/80%/80% 80%/80%/80% 75%/75%/75% 75%/75%/75% 75%/75%/75% Agency Loan Programs Page 6 of 410

7 Loan Terms, Continued Agency Maximum LTV/TLTV/ HTLTV Ratio Requirements, Second Home Agency Second Home Fixed Rate Terms Years Purpose # of Units LTV/TLTV/HTLTV for Non-AUS Loans LTV/TLTV/HTLTV for DU Loans LTV/TLTV/HTLTV for LP Loans Purchase 1 90%90%/90% 90%90%/90% 85%/85%/85% Limited Cash-Out Refinance (Rate/ Term) Cash-Out Refinance 1 90%90%/90% 90%90%/90% 85%/85%/85% 1 75%/75%/75% 75%/75%/75% 75%/75%/75% Agency Second Home 3/1, 5/1, 7/1, and 10/1 LIBOR ARMs Terms Years for 3/1, 5/1, and 7/1 ARMs; Years for 10/1 ARMs Purpose # of Units LTV/TLTV/HTLTV for Non-AUS Loans LTV/TLTV/HTLTV for DU Loans LTV/TLTV/HTLTV for LP Loans 1 Purchase 1 80%/80%/80% 80%/80%/80% 85%/85%/85% Limited 1 80%/80%/80% 80%/80%/80% 85%/85%/85% Cash-Out Refinance (Rate/ Term) Cash-Out Refinance 1 65%/65%/65% 65%/65%/65% 75%/75%/75%% 1. 5/1 ARMs with 5/2/5 caps are not eligible for LP loans. Agency Loan Programs Page 7 of 410

8 Loan Terms, Continued Agency Maximum LTV/TLTV/ HTLTV Ratio Requirements, Investment Property Purpose # of Units Purchase Limited 1 Cash-Out 2 Refinance 3 (Rate/ 4 Term) Cash-Out Refinance Agency Investment Property Fixed Rate Terms Years LTV/TLTV/HTLTV LTV/TLTV/HTLTV for Non-AUS Loans for DU Loans 85%/85%/85% 75%/75%/75% 75%/75%/75% 75%/75%/75% 75%/75%/75% 75%/75%/75% 75%/75%/75% 75%/75%/75% 75%/75%/75% 70%/70%/70% 70%/70%/70% 70%/70%/70% 85%/85%/85% 75%/75%/75% 75%/75%/75% 75%/75%/75% 75%/75%/75% 75%/75%/75% 75%/75%/75% 75%/75%/75% 75%/75%/75% 70%/70%/70% 70%/70%/70% 70%/70%/70% LTV/TLTV/HTLTV for LP Loans 85%/85%/85% 75%/75%/75% 75%/75%/75% 75%/75%/75% 85%/85%/85% 75%/75%/75% 75%/75%/75% 75%/75%/75% 75%/75%/75% 70%/70%/70% 70%/70%/70% 70%/70%/70% Agency Investment Property 3/1, 5/1, 7/1, and 10/1 LIBOR ARMs Terms Years for 3/1, 5/1, and 7/1 ARMs; Years for 10/1 ARMs Purpose # of Units LTV/TLTV/HTLTV for Non-AUS Loans LTV/TLTV/HTLTV for DU Loans LTV/TLTV/HTLTV for LP Loans 1,2 Purchase Limited Cash-Out Refinance (Rate/ Term) Cash-Out Refinance %/75%/75% 65%/65%/65% 65%/65%/65% 65%/65%/65% 65%/65%/65% 65%/65%/65% 65%/65%/65% 65%/65%/65% 65%/65%/65% 60%/60%/60% 60%/60%/60% 60%/60%/60% 75%/75%/75% 65%/65%/65% 65%/65%/65% 65%/65%/65% 65%/65%/65% 65%/65%/65% 65%/65%/65% 65%/65%/65% 65%/65%/65% 60%/60%/60% 60%/60%/60% 60%/60%/60% 85%/85%/85% 75%/75%/75% 75%/75%/75% 75%/75%/75% 85%/85%/85% 75%/75%/75% 75%/75%/75% 75%/75%/75% 75%/75%/75% 70%/70%/70% 70%/70%/70% 70%/70%/70% 1. 5/1 ARMs with 5/2/5 caps are not eligible for LP loans. 2 If borrower owns more than one investment property, the loan is not eligible for financing as an Agency 3/1 or 5/1 ARM. Agency Loan Programs Page 8 of 410

9 Loan Terms, Continued Agency Plus Maximum LTV/TLTV/ HTLTV Ratio Requirements Primary Residence Purpose # of Units Purchase Limited 1 Cash-Out 2 Refinance 3 (Rate/ 4 Term) Agency Plus Primary Residence - Fixed Rate Terms Years LTV/TLTV/HTLTV LTV/TLTV/HTLTV for Non-AUS Loans for DU Loans Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible 95%/95% 1 /95% 85%/85% 1 /85% 75%/75% 1 /75% 75%/75% 1 /75% 95%/95% 1 /95% 85%/85% 1 /85% 75%/75% 1 /75% 75%/75% 1 /75% LTV/TLTV/HTLTV for LP Loans 95%/95%/95% 80%/80%/80% 80%/80%/80% 80%/80%/80% 95%/95%/95% 80%/80%/80% 80%/80%/80% 80%/80%/80% Cash-Out Refinance Not Eligible Not Eligible Not Eligible Not Eligible 80%/80%/80% 75%/75%/75% 75%/75%/75% 75%/75%/75% 80%/80%/80% 75%/75%/75% 75%/75%/75% 75%/75%/75% 1 The TLTV may exceed the limits stated above up to 105% only if the mortgage is part of a Community Seconds transaction. Purpose Agency Plus Primary Residence - 5/1, 7/1 & 10/1 LIBOR ARMs Terms Years for 5/1 and 7/1 ARMs; Years for 10/1 ARMs # of LTV/TLTV/HTLTV LTV/TLTV/HTLTV LTV/TLTV/HTLTV Units for Non-AUS Loans for DU Loans for LP Loans 1 Purchase Limited Cash-Out Refinance (Rate/ Term) Cash-Out Refinance Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible 1 5/1 ARMs with 5/2/5 caps are not eligible for LP loans. 90%/90%/90% 75%/75%/75% 65%/65%/65% 65%/65%/65% 90%/90%/90% 75%/75%/75% 65%/65%/65% 65%/65%/65% 75%/75%/75% 65%/65%/65% 65%/65%/65% 65%/65%/65% 95%/95%/95% 80%/80%/80% 80%/80%/80% 80%/80%/80% 95%/95%/95% 80%/80%/80% 80%/80%/80% 80%/80%/80% 80%/80%/80% 75%/75%/75% 75%/75%/75% 75%/75%/75% Agency Loan Programs Page 9 of 410

10 Loan Terms, Continued Agency Plus Maximum LTV/TLTV/ HTLTV Ratio Requirements, Second Home Agency Plus Second Home - Fixed Rate Terms Years Purpose # of Units LTV/TLTV/HTLTV for Non-AUS Loans LTV/TLTV/HTLTV for DU Loans LTV/TLTV HTLTV for LP Loans Purchase 1 Not Eligible 90%/90%/90% 85%/85%/85% Limited Cash-Out Refinance (Rate/ Term) 1 Not Eligible 90%/90%/90% 85%/85%/85% Cash-Out Refinance 1 Not Eligible 75%/75%/75% 75%/75%/75% Agency Plus Second Home - 5/1, 7/1 & 10/1 LIBOR ARMs Terms Years for 5/1 and 7/1 ARMs; Years for 10/1 ARMs Purpose # of Units LTV/TLTV/HTLTV for Non-AUS Loans LTV/TLTV/HTLTV for DU Loans LTV/TLTV HTLTV for LP Loans 1 Purchase 1 Not Eligible 80%/80%/80% 85%/85%/85% Limited Cash-Out Refinance (Rate/ Term) 1 Not Eligible 80%/80%/80% 85%/85%/85% Cash-Out 1 Not Eligible 65%/65%/65% 75%/75%/75% Refinance 1 5/1 ARMs with 5/2/5 caps are not eligible for LP loans. Agency Loan Programs Page 10 of 410

11 Loan Terms, Continued Agency Plus Maximum LTV/TLTV/ HTLTV Ratio Requirements, Investment Property Purpose # of Units Purchase Limited 1 Cash-Out 2 Refinance 3 (Rate/ 4 Term) Cash-Out Refinance Agency Plus Investment Property - Fixed Rate Terms Years LTV/TLTV/HTLTV LTV/TLTV/HTLTV for Non-AUS Loans for DU Loans Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible 85%/85%/85% 75%/75%/75% 75%/75%/75% 75%/75%/75% 75%/75%/75% 75%/75%/75% 75%/75%/75% 75%/75%/75% 75%/75%/75% 70%/70%/70% 70%/70%/70% 70%/70%/70% LTV/TLTV/HTLTV for LP Loans 85%/85%/85% 75%/75%/75% 75%/75%/75% 75%/75%/75% 85%/85%/85% 75%/75%/75% 75%/75%/75% 75%/75%/75% 75%/75%/75% 70%/70%/70% 70%/70%/70% 70%/70%/70% Purpose Purchase Limited Cash-Out Refinance (Rate/ Term) Cash-Out Refinance Agency Plus Investment Property - 5/1, 7/1 & 10/1 LIBOR ARMs Terms Years for 5/1 and 7/1 ARMs; Years for 10/1 ARMs # of LTV/TLTV/HTLTV LTV/TLTV/HTLTV LTV/TLTV/HTLTV Units for Non-AUS Loans for DU Loans for LP Loans 1, Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible Not Eligible 75%/75%/75% 65%/65%/65% 65%/65%/65% 65%/65%/65% 65%/65%/65% 65%/65%/65% 65%/65%/65% 65%/65%/65% 65%/65%/65% 60%/60%/60% 60%/60%/60% 60%/60%/60% 85%/85%/85% 75%/75%/75% 75%/75%/75% 75%/75%/75% 85%/85%/85% 75%/75%/75% 75%/75%/75% 75%/75%/75% 75%/75%/75% 70%/70%/70% 70%/70%/70% 70%/70%/70% 1 5/1 ARMs with 5/2/5 caps are not eligible for LP loans. 2 If the borrower owns more than one investment property, the loan is not eligible for financing as a 5/1 ARM. Agency Loan Programs Page 11 of 410

12 Loan Terms, Continued ARM Change Date Charts Agency 3/1 LIBOR ARM Closing Interest Starts Accruing First Pymt Date First Interest Change Date Maturity Date 30 Yr Term Maturity Date 15 Yr Term 12/2/15-01/01/16 02/01/16 01/01/19 01/01/46 01/01/31 01/1/16 01/2-02/1/16 02/01/16 03/01/16 02/01/19 02/01/46 02/01/31 02/2-03/1/16 03/01/16 04/01/16 03/01/19 03/01/46 03/01/31 03/2-04/1/16 04/01/16 05/01/16 04/01/19 04/01/46 04/01/31 04/2-05/1/16 05/01/16 06/01/16 05/01/19 05/01/46 05/01/31 05/2-06/1/16 06/01/16 07/01/16 06/01/19 06/01/46 06/01/31 06/2-07/1/16 07/01/16 08/01/16 07/01/19 07/01/46 07/01/31 07/2-08/1/16 08/01/16 09/01/16 08/01/19 08/01/46 08/01/31 08/2-09/1/16 09/01/16 10/01/16 09/01/19 09/01/46 09/01/31 09/2-10/1/16 10/01/16 11/01/16 10/01/19 10/01/46 10/01/31 10/2-11/1/16 11/01/16 12/01/16 11/01/19 11/01/46 11/01/31 11/2-12/1/16 12/01/16 01/01/17 12/01/19 12/01/46 12/01/31 12/2/16-01/1/17 01/01/17 02/01/17 01/01/20 01/01/47 01/01/32 Agency 5/1 LIBOR ARM Closing Interest Starts Accruing First Payment Date First Interest Change Date Maturity Date 30 Yr Term Maturity Date 15 Yr Term 12/2/15-01/01/16 02/01/16 01/01/21 01/01/46 01/01/31 01/1/16 01/2-02/1/16 02/01/16 03/01/16 02/01/21 02/01/46 02/01/31 02/2-03/1/16 03/01/16 04/01/16 03/01/21 03/01/46 03/01/31 03/2-04/1/16 04/01/16 05/01/16 04/01/21 04/01/46 04/01/31 04/2-05/1/16 05/01/16 06/01/16 05/01/21 05/01/46 05/01/31 05/2-06/1/16 06/01/16 07/01/16 06/01/21 06/01/46 06/01/31 06/2-07/1/16 07/01/16 08/01/16 07/01/21 07/01/46 07/01/31 07/2-08/1/16 08/01/16 09/01/16 08/01/21 08/01/46 08/01/31 08/2-09/1/16 09/01/16 10/01/16 09/01/21 09/01/46 09/01/31 09/2-10/1/16 10/01/16 11/01/16 10/01/21 10/01/46 10/01/31 10/2-11/1/16 11/01/16 12/01/16 11/01/21 11/01/46 11/01/31 11/2-12/1/16 12/01/16 01/01/17 12/01/21 12/01/46 12/01/31 12/2/16-01/1/17 01/01/17 02/01/17 01/01/22 01/01/47 01/01/32 Agency Loan Programs Page 12 of 410

13 Loan Terms, Continued ARM Change Date Charts, Agency 7/1 LIBOR ARM Closing Interest Starts Accruing First Payment Date First Interest Change Date Maturity Date 30 Yr Term Maturity Date 15 Yr Term 12/2/15-01/01/16 02/01/16 01/01/23 01/01/46 01/01/31 01/1/16 01/2-02/1/16 02/01/16 03/01/16 02/01/23 02/01/46 02/01/31 02/2-03/1/16 03/01/16 04/01/16 03/01/23 03/01/46 03/01/31 03/2-04/1/16 04/01/16 05/01/16 04/01/23 04/01/46 04/01/31 04/2-05/1/16 05/01/16 06/01/16 05/01/23 05/01/46 05/01/31 05/2-06/1/16 06/01/16 07/01/16 06/01/23 06/01/46 06/01/31 06/2-07/1/16 07/01/16 08/01/16 07/01/23 07/01/46 07/01/31 07/2-08/1/16 08/01/16 09/01/16 08/01/23 08/01/46 08/01/31 08/2-09/1/16 09/01/16 10/01/16 09/01/23 09/01/46 09/01/31 09/2-10/1/16 10/01/16 11/01/16 10/01/23 10/01/46 10/01/31 10/2-11/1/16 11/01/16 12/01/16 11/01/23 11/01/46 11/01/31 11/2-12/1/16 12/01/16 01/01/17 12/01/23 12/01/46 12/01/31 12/2/16-01/1/17 01/01/17 02/01/17 01/01/24 01/01/47 01/01/32 Agency 10/1 LIBOR ARM Closing Interest Starts Accruing First Pymt Date First Interest Change Date Maturity Date 30 Yr Term Maturity Date 15 Yr Term 12/2/15-01/01/16 02/01/16 01/01/26 01/01/46 01/01/31 01/1/16 01/2-02/1/16 02/01/16 03/01/16 02/01/26 02/01/46 02/01/31 02/2-03/1/16 03/01/16 04/01/16 03/01/26 03/01/46 03/01/31 03/2-04/1/16 04/01/16 05/01/16 04/01/26 04/01/46 04/01/31 04/2-05/1/16 05/01/16 06/01/16 05/01/26 05/01/46 05/01/31 05/2-06/1/16 06/01/16 07/01/16 06/01/26 06/01/46 06/01/31 06/2-07/1/16 07/01/16 08/01/16 07/01/26 07/01/46 07/01/31 07/2-08/1/16 08/01/16 09/01/16 08/01/26 08/01/46 08/01/31 08/2-09/1/16 09/01/16 10/01/16 09/01/26 09/01/46 09/01/31 09/2-10/1/16 10/01/16 11/01/16 10/01/26 10/01/46 10/01/31 10/2-11/1/16 11/01/16 12/01/16 11/01/26 11/01/46 11/01/31 11/2-12/1/16 12/01/16 01/01/17 12/01/26 12/01/46 12/01/31 12/2/16-01/1/17 01/01/17 02/01/17 01/01/27 01/01/47 01/01/32 Agency Loan Programs Page 13 of 410

14 Loan Terms, Continued ARM Disclosures Reference: See Program Disclosures subtopic in the Application and Consumer Compliance topic subsequently presented in this product description for additional information. ARM Parameters Fannie Mae ARM Plan Numbers The table below shows Fannie Mae ARM Plan numbers: ARM Type DU Direct Data Input Fully Amortizing 3/1 ARM FM GENERIC, 3 YR Fully Amortizing 5/1 ARM (2/2/5 caps) FM GENERIC, 5 YR Fully Amortizing 5/1 ARM (5/2/5 caps) 3252 Fully Amortizing 7/1 ARM FM GENREIC, 7 YR Fully Amortizing 10/1 ARM FM GENERIC, 10 YR Conversion Option A conversion option is not available. All Agency LIBOR ARM products are nonconvertible. Interest Rate Adjustment The interest rate is fixed for the initial period and is then subject to change on an annual basis thereafter, using the most recent index figure available 45 days prior to the interest rate adjustment. Index The index is the average of Interbank offered rates for one-year U.S. dollardenominated deposits in the London market (LIBOR), as published in the Wall Street Journal. Margin/Floor The base margin is 2.25%. Refer to SunTrust s pricing adjustment sheet for applicable margin add-ons. The margin is also the floor. Agency Loan Programs Page 14 of 410

15 Loan Terms, Continued ARM Parameters Interest Rate Caps The following table shows caps that apply to the applicable ARM programs. ARM Program Caps 3/1 ARM 2% cap, up or down, on the initial change, 2% cap, up or down, on each annual change thereafter, and 6% lifetime cap (over the note rate). 5/1 ARM Agency 5/1 LIBOR ARMs offer a 2/2/5 and a 5/2/5 cap structure. 2/2/5 cap structure: 2% cap, up or down, on the initial change, 2% cap, up or down, on each annual change thereafter, and 5% lifetime cap (over the note rate). 5/2/5 cap structure: 5% cap, up or down, on the initial change, 2% cap, up or down, on each annual change thereafter, and 5% lifetime cap (over the note rate). 7/1 & 10/1 ARMs 5% cap, up or down, on the initial change, 2% cap, up or down, on each annual change thereafter, and 5% lifetime cap (over the note rate). Additional ARM Parameters The note rate of 3/1 ARMs cannot be more than 300 basis points (3%) below the fully indexed rate (margin plus current index value). There is no such restriction on 5/1, 7/1 and 10/1 ARMs. Agency Loan Programs Page 15 of 410

16 Loan Terms, Continued Assumptions Fixed rate products are not assumable, except as permitted by state and federal law. The following information applies to assumptions of ARM products: The 3/1 ARM is assumable at any time. The 5/1, 7/1 and 10/1 are assumable after the initial fixed rate period (i.e., after 60 months for the 5/1 ARM, after 84 months for the 7/1 ARM, and after 120 months for the 10/1 ARM). Borrower(s) must contact their current mortgage servicer for additional information. Interest Only Parameters Interest only transactions are not eligible under the Agency loan program. Multiple Financed Properties for the Same Borrower Non-AUS Limits on the Number of Financed Properties If the mortgage loan being delivered to Fannie Mae is secured by the borrower s primary residence, there are no limitations on the number of other properties that the borrower will have financed. If the borrower is financing a second home or investment property, the maximum number of financed properties the borrower can have is six. Fannie Mae s standard eligibility requirements apply (for example, LTV ratios and minimum credit scores). The lender must determine that the borrower meets the minimum reserve requirements that apply to multiple financed properties. The financed property limit: applies to the number of one- to four-unit residential properties where the borrower is personally obligated on the mortgage(s); applies to the total number of properties financed, not to the number of mortgages on the property or the number of mortgages sold to Fannie Mae; includes the borrower s primary residence if it is financed; and is cumulative for all borrowers (though jointly financed properties are only counted once). The following property types are not subject to these limitations, even if the borrower is personally obligated on a mortgage on the property: commercial real estate, multifamily property consisting of more than four units, ownership in a timeshare, ownership of a vacant lot (residential or commercial), or ownership of a manufactured home on a leasehold estate not titled as real property (chattel lien on the home). Agency Loan Programs Page 16 of 410

17 Loan Terms, Continued Multiple Financed Properties for the Same Borrower Non-AUS, continued Examples Counting Financed Properties The borrower is personally obligated on mortgages securing two investment properties and the co-borrower is personally obligated on mortgages securing three other investment properties, and they are jointly obligated on their primary residence mortgage. The borrower is refinancing the mortgage on one of the two investment properties. Thus, the borrowers have six financed properties. The borrower and co-borrower are purchasing an investment property and they are already jointly obligated on the mortgages securing five other investment properties. In addition, they each own their own primary residence and are personally obligated on the mortgages. The new property being purchased is considered the borrowers' eighth financed property. The borrower is purchasing a second home and is personally obligated on his or her primary residence mortgage. Additionally, the borrower owns four two-unit investment properties that are financed in the name of a limited liability company (LLC) of which he or she has a 50% ownership. Because the borrower is not personally obligated on the mortgages securing the investment properties, they would not be included in the property count and the result is only two financed properties. The borrower is purchasing and financing two investment properties simultaneously. The borrower does not have a mortgage lien against his or her primary residence but does have a financed second home and is personally obligated on the mortgage, two existing financed investment properties and is personally obligated on both mortgages, and a financed building lot. In this instance, the borrower will have five financed properties because the financed building lot does not need to be included in the property count. Reserve Requirements Additional reserve requirements apply based on the number of financed properties the borrower will have. The borrower must have sufficient assets to close after meeting the minimum reserve requirements. See the Cash Reserve Requirements subtopic within this document for the additional reserve requirements. SunTrust Borrower Exposure For Agency loans, SunTrust Mortgage does not limit the total number of loans available to an individual borrower or the outstanding dollar total of loans held by SunTrust. Fannie Mae DU Follow DU requirements, which are the same as non-aus guidelines, except as outlined below: DU is not able to determine the exact number of financed properties the borrower owns or is obligated on, but does issue a message on second home and investment property transactions when the borrower appears to have other financed properties. The lender must apply the eligibility requirements manually to investment property and second home transactions that are underwritten through DU, as applicable. See the Limits on the Number of Financed Properties section outlined below for additional details. Agency Loan Programs Page 17 of 410

18 Loan Terms, Continued Multiple Financed Properties for the Same Borrower Fannie Mae DU, continued Limits on the Number of Financed Properties If the borrower is financing a second home or investment property, the maximum number of financed properties the borrower can have is ten. If the borrower will have one to six financed properties, standard eligibility requirements apply (for example, LTV ratios and minimum credit scores). If the borrower will have seven to ten financed properties, the mortgage loan must have a minimum representative credit score of 720; all other standard eligibility requirements apply. Delivery Requirements for Investor and Second Home Borrowers with Seven to Ten Financed Properties SFC 150 must be captured when the subject property is a second home or investment property and the borrower will have seven to 10 financed properties. Freddie Mac LPA If the mortgage is secured by the borrower s primary residence, there are no limitations on the number of properties that the borrower can currently be financing. If the mortgage is secured by the borrower s second home or investment property, each borrower individually and all borrowers collectively must not own and/or be obligated on (e.g., Notes, land contracts and/or any other debt or obligation) more than six 1- to 4-unit financed properties, including the subject property and the borrower's primary residence. Examples of financed properties that do not have to be counted in this limitation include: Commercial real estate Multifamily (five or more units) real estate Timeshares Undeveloped land Manufactured homes not titled as real property (chattel lien), unless the property is situated on the land that is titled as real property Property titled in the name of the borrower's business provided that the borrower, in his or her individual capacity, is not on title and/or is not obligated on the property Property titled in the name of a trust where the borrower is a trustee, provided that the borrower in his or her individual capacity, is not on title and/or not obligated on the property The following additional requirement applies for investment properties: Freddie Mac will purchase investment property mortgages made to borrowers who own more than one financed investment property, provided that the investment property mortgage being sold to Freddie Mac is: An eligible fixed-rate, level-payment Mortgage, or A 7/1 or 10/1 ARM. SunTrust Borrower Exposure For Agency loans, SunTrust Mortgage does not limit the total number of loans available to an individual borrower or the outstanding dollar total of loans held by SunTrust. Agency Loan Programs Page 18 of 410

19 Ability-to-Repay and Qualified Mortgage General Reference: See the Ability-to-Repay and Qualified Mortgage topic in Section 1.05: Underwriting for guidance. Agency Loan Programs Page 19 of 410

20 Eligible Transactions Calculation of LTV/TLTV/HTLTV Ratios Non-AUS Calculation of the LTV Ratio The maximum allowable LTV ratio for a first mortgage is based on a number of factors including, the representative credit score, the type of mortgage product, the number of dwelling units, and the occupancy status of the property. The following table describes the requirements for calculating LTV ratios for a first mortgage transaction. The result of these calculations must be truncated (shortened) to two decimal places, then rounded up to the nearest whole percent. For example: 94.01% will be delivered as 95%, and % will be delivered as 80%. Note: The rounding rules noted above also apply to the TLTV and HTLTV ratio calculations. Lenders' systems must contain rounding methodology that results in the same or a higher LTV ratio. Type of Transaction Purchase Money Transactions Refinance Transactions Mortgages with Financed Mortgage Insurance Calculation of the LTV Ratio Divide the original loan amount by the property value. (The property value is the lower of the sales price or the current appraised value.) Divide the original loan amount by the property value. (The property value is the current appraised value.) Divide the original loan amount plus the financed mortgage insurance by the property value. (The property value is the lower of the sales price or the current appraised value.) Note: Transactions with financed mortgage insurance are currently not eligible under the standard Agency loan program. Note: The LTV ratio calculations shown above may differ for certain mortgage loans. For details on these differences, see the Community Seconds (Fannie Mae) / Affordable Seconds (Freddie Mac), Construction Lending Single-Closings, Installment Land Contracts, and Properties with Resale Restrictions subtopics outlined in this document and Section 1.15: Mortgage Insurance of the. Agency Loan Programs Page 20 of 410

21 Eligible Transactions, Continued Calculation of LTV/TLTV/HTLTV Ratios Calculation of the TLTV Ratio For first mortgage loans that are subject to subordinate financing, the lender must calculate the LTV ratio and the TLTV ratio. (For first mortgage loans that are subject to a HELOC, see the Calculation of the HTLTV Ratios guidance provided below. The TLTV ratio is determined by dividing the sum of the items listed below by the lesser of the sales price or the appraised value of the property. the original loan amount of the first mortgage, the drawn portion (outstanding principal balance) of a HELOC, and the unpaid principal balance of all closed-end subordinate financing. (With a closed-end loan, a borrower draws down all funds on day one and may not make any payment plan changes or access any paid-down principal once the loan is closed.) Note: For each subordinate liability, in order for the lender to accurately calculate the TLTV ratio for eligibility and underwriting purposes, the lender must determine the drawn portion of all HELOCs, if applicable, and the unpaid principal balance for all closed-end subordinate financing. If any subordinate financing is not shown on a credit report, the lender must obtain documentation from the borrower or creditor. If the borrower discloses, or the lender discovers, new (or increased) subordinate financing after the underwriting decision has been made, up to and concurrent with closing, the lender must re-underwrite the mortgage loan. Note: The TLTV ratio calculation may differ for certain mortgage loans. For details on these differences, see the Community Seconds (Fannie Mae) / Affordable Seconds (Freddie Mac), Construction Lending Single-Closings, Installment Land Contracts, and Properties with Resale Restrictions subtopics outlined in this document. Calculation of the HTLTV Ratio For first mortgages that have subordinate financing under a HELOC, the lender must calculate the HTLTV ratio. This is determined by dividing the sum of the items listed below by the lesser of the sales price or appraised value of the property. the original loan amount of the first mortgage, the full amount of any HELOCs (whether or not funds have been drawn), and the unpaid principal balance (UPB) of all closed-end subordinate financing. Note: For each subordinate liability, in order for the lender to accurately calculate the HTLTV ratio for eligibility and underwriting purposes, the lender must determine the maximum credit line for all HELOCs, if applicable, and the unpaid principal balance for all closed-end subordinate financing. If any subordinate financing is not shown on a credit report, the lender must obtain documentation from the borrower or creditor. Agency Loan Programs Page 21 of 410

22 Eligible Transactions, Continued Calculation of LTV/TLTV/HTLTV Ratios If the borrower discloses, or the lender discovers, new (or increased) subordinate financing after the underwriting decision has been made, up to and concurrent with closing, the lender must re-underwrite the mortgage loan. Reference: See the Home Equity Lines (HELOCs) subtopic subsequently presented in the Secondary Financing topic for additional guidance for permanently modified HELOCs. Fannie Mae DU Follow DU requirements, which are the same as non-aus guidelines, with the following exception: Transactions with financed mortgage insurance are currently not eligible under the standard Agency loan program and Agency Plus loan programs. Freddie Mac LP Follow LP requirements, which are the same as non-aus guidelines, with the following exception: Transactions with financed mortgage insurance are currently not eligible under the standard Agency loan program and Agency Plus loan programs. Agency Loan Programs Page 22 of 410

23 Eligible Transactions, Continued Construction Lending Single Closings Notes: SunTrust Mortgage clarifies that complete tear down transactions are allowed under these Construction Lending-Single Closing transaction guidelines. Fannie Mae s HomeStyle Renovation (HSR) mortgage loan program guidelines are not eligible. Non-AUS Conversion of Construction-to-Permanent Financing Overview: The conversion of construction-to-permanent financing involves the granting of a long-term mortgage to a borrower for the purpose of replacing interim construction financing that the borrower has obtained to fund the construction of a new residence. Construction-to-permanent financing can be structured as a transaction with one closing. The borrower must hold title to the lot, which may have been previously acquired or be purchased as part of the transaction. All construction work, including any work that could entitle a party to file a mechanics or materialmen s lien, must be completed and paid for, and all mechanics liens, materialmen s liens, and any other liens and claims that could become liens relating to the construction must be satisfied before the mortgage loan is delivered to Fannie Mae. The lender must retain in its individual loan file the appraiser's certificate of completion and a photograph of the completed property. When a construction-to-permanent mortgage loan provides funds for acquisition or refinancing of an unimproved lot and the construction of a residence on the lot, the lender must retain a certificate of occupancy or an equivalent form from the applicable government authority. The lender must use Fannie Mae's uniform mortgage instruments to document the permanent mortgage. These documents may not be altered to include any reference to construction of the property, other than any alteration that Fannie Mae specifically requires. Log homes, units in a condo or co-op project, and manufactured housing are not eligible for construction-to-permanent financing. Single-Closing Transaction Overview Single-closing transactions may be used for both the construction loan and the permanent financing if the borrower wants to close on both the construction loan and the permanent financing at the same time. When a single-closing transaction is used, the lender will be responsible for managing the disbursement of the loan proceeds to the builder, contractor, or other authorized suppliers. Because the loan documents specify the terms of the permanent financing, the construction loan will automatically convert to a permanent long-term mortgage upon completion of the construction. Loans that combine construction and permanent financing into a single transaction cannot be pooled or delivered to Fannie Mae until the construction is completed and the terms of the construction loan have converted to the permanent financing. Agency Loan Programs Page 23 of 410

24 Eligible Transactions, Continued Construction Lending Single Closings, Terms of Construction Loan Period: For all single-closing construction-to-permanent transactions, the construction loan must be structured as a temporary loan exempt from the ability to repay requirements under Regulation Z. The construction loan period for singleclosing construction-to-permanent transactions may have no single period of more than 12 months and the total period may not exceed 18 months. Lenders may, when needed to complete the construction, provide an extension to the original period to total no more than 18 months but the documents may not indicate an initial construction period or subsequent extension of more than 12 months. After conversion to permanent financing, the loan must have a loan term not exceeding 30 years (disregarding the construction period). As examples, lenders may structure the construction loan period as follows: three 6 month periods, one 12 month period and one 6 month period, or six 3 month periods. Exceptions to the 12-month and 18-month periods will not be granted. If the construction loan period exceeds the requirements above, the lender must process the loan as a two-closing construction-to-permanent transaction in order for the loan to be eligible (see Construction Lending Two Closings). Eligible Loan Purposes: A single-closing construction-to-permanent mortgage loan may be closed as: a purchase transaction, or a limited cash-out refinance transaction. When a purchase transaction is used, the borrower is not the owner of the lot prior to the loan application, and the borrower is using the proceeds from the interim construction financing to purchase the lot and finance the construction of the property. When a limited cash-out refinance transaction is used, the borrower must have held legal title to the lot before he or she applied for the interim construction financing. The borrower is using the proceeds from the construction financing to pay off any existing liens on the lot and finance the construction of the property. This type of transaction is not a true limited cash-out refinance whereby the borrower refinances a loan(s) that was used to purchase a completed property; however, all other requirements for limited cash-out refinances apply. See the Limited Cash-Out Refinances subtopic for additional guidance. Note: Cash-out refinance transactions are not eligible for single-closing construction-to-permanent mortgages. Calculating the LTV Ratio: Single-closing construction-to-permanent mortgages are subject to the purchase and limited cash-out refinance maximum LTV, TLTV, and HTLTV ratios, as applicable. The LTV ratio calculation differs depending on whether the transaction is a purchase or a limited cash-out refinance, as shown in the table below. Agency Loan Programs Page 24 of 410

25 Eligible Transactions, Continued Construction Lending Single Closings, Transaction Type Purchase Lot Ownership Requirement The borrower is not the owner of record of the lot at the time of loan application. LTV Ratio Calculation Divide the loan amount of the construction-to-permanent financing by the lesser of: the purchase price (sum of the cost of construction and the sales price of the lot), or the as completed appraised value of the property (the lot and improvements). Limited Cash-out Refinance The borrower is the owner of record of the loan at the time of loan application. Divide the loan amount of the construction-to-permanent financing by the as-completed appraised value of the property (the lot and improvements). Modifications of Single-Closing Construction-to-Permanent Mortgages If the terms of the permanent financing change after the original closing date of the construction loan, the loan may be modified to reflect the new terms if it meets all of the following criteria: The modification must take place prior to or at the time of conversion. Only the following loan terms may be modified in a single-closing transactions: interest rate, loan amount, loan term, and amortization type. Notes: The only amortization change permitted is from an adjustable-rate amortization to a fixed-rate amortization. Changes made to any other loan terms will require a two-closing construction-to-permanent transaction. The loan must be underwritten based on the terms of the loan as modified and delivered. Increases to the loan amount are permitted only as necessary to cover documented increased costs of construction of the property. If the modification results in an increase in the original loan amount, the lender remains responsible for all standard title insurance requirements. In addition, the lender must obtain an endorsement to the title insurance policy that: extends the effective date of the coverage to the date of the recording of the modification agreement; increases the amount of the policy to the original loan amount, as increased; and confirms that the lien of the mortgage, as modified, continues to be a first lien. Agency Loan Programs Page 25 of 410

26 Eligible Transactions, Continued Construction Lending Single Closings, Note: Both the original construction loan amount at closing and the final modified loan amount must meet the loan limits currently in effect. The original construction loan must be documented on Fannie Mae uniform instruments or substantially similar documents. The modification must be documented on one of the following: Loan Modification Agreement (Providing for Fixed Interest Rate) (Fannie Mae Form 3179); Loan Modification Agreement (Providing for Adjustable Interest Rate) (Fannie Mae Form 3161); or A substantially similar document. Underwriting Single-Closing Construction-to-Permanent Mortgages The lender must underwrite a single-closing construction-to-permanent loan based on the terms of the permanent financing. If the permanent financing terms are modified, and no longer reflect the terms on which the underwriting was based, the loan must be re-underwritten, subject to certain re-underwriting tolerances. As described in the table below, re-underwriting tolerances may be applied if the interest rate was modified. (All other modifications require re-underwriting.) Loan Term Re-underwriting Tolerances Modified Interest Rate For manually underwritten loans, the loan must be reunderwritten if the new, modified interest rate causes the DTI ratio: to exceed 45%, or to increase by 3 percentage points or more (if the recalculated DTI ratio is less than 45%). Loan Conversion Documentation Options The construction loan may be converted into a permanent mortgage loan in either of the following ways: Option 1: A construction loan rider must be used to modify Fannie Mae s uniform instrument that will be used for the permanent mortgage. The rider must state the construction loan terms, and the construction-related provisions of the rider must become null and void at the end of the construction period and before the permanent mortgage is delivered. Because the permanent mortgage cannot be sold before it is scheduled to begin amortizing, a lender will need to amend the construction loan rider, and the accompanying uniform instrument, if the construction is completed sooner or later than originally anticipated. The amendment(s) should provide the new dates on which amortization for the permanent mortgage will begin and end. The lender also will need to record the amended documents before the permanent mortgage is sold. Agency Loan Programs Page 26 of 410

27 Eligible Transactions, Continued Construction Lending Single Closings Option 2: A separate modification agreement must be used to convert the construction loan into permanent financing. This agreement must be executed and recorded in the applicable jurisdiction before the permanent mortgage is delivered. The lender must include the applicable conversion document in its loan submission package. When amended documents are recorded in connection with a construction loan rider, the lender also must include a copy of the original documentation that the borrower Applicable conversion documents must be contained in the loan package. When amended documents are recorded in connection with a construction loan rider, the lender also must include a copy of the original documentation that the borrower signed. Fannie Mae DU Follow DU requirements, which are the same as non-aus guidelines, except as outlined below: Modifications of Single-Closing Construction-to-Permanent Mortgages If the final (modified) terms of the loan do not match the last submission to DU, the loan must be re-submitted to DU (subject to re-submission tolerances referenced below). Underwriting Single-Closing Construction-to-Permanent Mortgages If the permanent financing terms are modified, and no longer reflect the terms on which the underwriting was based, the loan must be re-underwritten, subject to certain re-underwriting tolerances. The loan data at delivery must match the data in the final submission of the loan casefile to DU. As described in the table below, re-underwriting tolerances may be applied if the interest rate or loan amount was modified. (All other modifications require re-underwriting.) Loan Term Re-underwriting Tolerances Modified Interest Rate For loans underwritten through DU, see the permitted underwriting tolerances in the Underwriting the Borrower topic subsequently presented in this document for guidance. Loan Amount For loans underwritten through DU, see the permitted underwriting tolerances in the Underwriting the Borrower topic subsequently presented in this document for guidance. Agency Loan Programs Page 27 of 410

28 Eligible Transactions, Continued Construction Lending Single Closings Age of Credit and Appraisal Documents Single-closing transactions with credit and appraisal documents dated more than 4 months but not exceeding 18 months old at the time of the conversion to permanent financing are eligible for delivery if all of the following conditions were met at the time of the original closing of the construction loan: The documents were dated within 120 days of the original closing date of the construction loan. The LTV, TLTV, and HTLTV ratios do not exceed 70%. The borrower has a minimum credit score of 700. The loan casefile was underwritten through DU and received an Approve/Eligible recommendation. Manual underwriting is not permitted. If any of the above conditions was not met, or an eligible loan term was modified subsequent to the last DU submission, the lender must: obtain updated credit and/or appraisal documents, and requalify the borrowers. For Agency Plus transactions, the loan amount on the note must be less than or equal to the Agency Plus eligible maximum loan amount at the time of conversion to the permanent phase regardless of lock terms. Freddie Mac LPA Not eligible Agency Loan Programs Page 28 of 410