FHLMC PROGRAM LINEUP`

Transcription

1 FHLMC PROGRAM LINEUP` Table of Contents Conventional Conforming (fixed & ARM)... 2 Super Conforming Fixed Rate... 5 Super Conforming ARM... 7 Home Possible Open Access HomeOne FHLMC Program series Update: 8/16/2018 1

2 CONVENTIONAL CONFORMING FIXED RATE & ARM LP Conventional Conforming and Super Conforming Fixed and ARM Matrix: PURCHASE AND RATE TERM REFINANCE Occupancy Units FICO * LP LTV/CLTV/HCLTV 1, /95/95 Primary Residence /80/80 Second Home /85/85 Investment Property /85/ /75/75 CASH-OUT REFINANCE Occupancy Units FICO LP LTV/CLTV/HCLTV 1 Primary /80/80 Residence /75/75 Second Home /75/75 Investment Property /75/ /70/70 Program Matrix Notes: 1 unit includes attached/detached single family and PUD, low and high condo, and modular home Maximum loan amount equals conforming loan limit Please see underwriting guidelines for additional program details When subordinate financing exists, the LTV must be reduced 5% of the maximum CLTV/HCLTV. For example, if the CLTV/HCLTV is 95%, the maximum LTV cannot exceed 90%. Minimum FICO for loans requiring mortgage insurance. Some states may be subject to limited MI availability, or require higher FICOs, or LTV reductions. If subject is an investment property and borrower owns more than one financed investment property other than subject property, the subject mortgage loan must be: An eligible Fixed-rate; or level-payment Mortgage, or A 7/1 or 10/1 ARM NOTE: 5/1 ARMs are not eligible for investment transactions when borrower owns more than one (1) financed investment property. FHLMC Program series Update: 8/16/2018 2

3 Product Detail Product Guidelines AUS Loan Prospector (LP) with "Accept" Recommendation Manual underwriting is not allowed. Borrower Eligibility Maximum four(4) borrowers per loan Credit Any debt not reported on the credit report must be documented as being repaid in a satisfactory manner. Credit report inquiries: follow LP Findings. Must pay off any existing judgments or tax liens. Derogatory Credit Derogatory Event All derogatory events must be accurately reported on credit. FICO 620 is the required minimum credit score. All borrowers must have a minimum of one credit score to be eligible. Financing Concessions Financing concessions for primary residences and second homes must be within the following allowable percentages: High Cost / High Priced 9% of value with LTV/CLTV ratios less than or equal to 75% 6% of value with LTV/CLTV ratios greater than 75% up to and including 90% 3% of value with LTV/CLTV ratios greater than 90% -The maximum financing concession for investment properties is 2% of value regardless of the LTV ratio For Mortgages secured by Investment Properties, the maximum financing concession allowed is 2% of value regardless of the LTV ratio. Value is the lesser of the sales price or appraised value Not allowed Maximum Loan Amount Conforming limit Minimum Loan Amount $50,000 Occupancy Primary residence 1-4 units Second home 1 unit only Investment Property 1-4 units FHLMC Program series Update: 8/16/2018 3

4 Property Types Eligible: Single Family (Detached, Attached) PUD (Detached, Attached) Condominium - Warrantable (Detached, Attached) 2-4 Units Multiple Financed Properties Ineligible: Manufactured homes (built on a permanent chassis and attached to permanent foundations Mobile Homes Condominium Conversions that were converted within the last three years Condotels/Hotel Condominiums or PUDs Cooperatives Timeshares Geodesic Domes Working Farms and Ranches Unimproved Land Property currently in litigation Land Trust Condition Rating of C5/C6 or a Quality Rating of Q6. For all occupancy types: 6 financed, 8 total properties For second home and investment property transactions: Each borrower individually and all Borrowers collectively must not own and/or be obligated on more than six (6) financed 1-4 unit properties and eight total properties, including the subject property. Ownership of commercial or multifamily (five or more units) real estate is excluded from the financed property limitation and is included in the total property limitation. Ratios Max 50% DTI Maximum DTI is determined by Loan Product Advisor and is based on the overall risk assessment of the loan file. Term 10, 15, 20, 25, 30 years ARM Specific Product Detail Caps For 5/1 ARMs: 2/2/5 For 7/1 ARMs: 5/2/5 Index Margin Year LIBOR Product Guidelines For more information please refer to LP Conventional Conforming fixed product detail. FHLMC Program series Update: 8/16/2018 4

5 SUPER CONFORMING FIXED RATE PROGRAM (SC) LP Super Conforming Fixed Matrix: PURCHASE AND NO CASH-OUT REFINANCE Occupancy Units FICO LP LTV/CLTV/HCLTV 1 Primary Residence * 95/95/ * 85/85/ * 80/80/80 Second Home * 90/90/90 Investment Property * 85/85/ * 75/75/75 CASH-OUT REFINANCE Occupancy Units FICO LP LTV/CLTV/HCLTV 1 Primary Residence * 80/80/ * 75/75/75 Second Home * 75/75/75 Investment Property * 75/75/ * 70/70/70 NO CASH-OUT REFINANCE MORTGAGES currently owned or securitized by Freddie Mac Occupancy Units FICO LP LTV/CLTV/HCLTV 1 Primary Residence * 95/95/ * 80/80/80 Second Home * 95/95/95 Investment Property * 85/85/ * 75/75/75 FHLMC Program series Update: 8/16/2018 5

6 Program Matrix Notes: No minimum credit score requirement, unless specified by Freddie Mac due to specific loan characteristics. 1 unit includes attached/detached single family and PUD, low and high condo, and modular home Maximum loan amount is equal to the lesser of Contiguous States as defined by the Federal Housing Finance Agency (FHFA) Combined loan amount cannot exceed $1,000,000 Product Detail Product Guidelines AUS Loan Prospector (LP) with "Accept" Recommendation Underwriting Minimum Loan Amount $453,101 Borrower Eligibility Credit Report Program Codes Property Flipping Policy Power of Attorney Ratios Manual underwriting not permitted Maximum four (4) borrowers per loan No minimum credit score requirement, unless specified by Freddie Mac due to specific loan characteristics. SC30, SC20, SC15, SC5/1, SC7/1 Not allowed No Power of Attorney s allowed on Trusts or cash-out refinances Max 45% DTI The HIGH-BALANCE GOLD program is a pricing overlay created within the parameters of AGENCY High Balance. Eligible High-Balance Cash-out transactions will incur a reduced 0.50 hit for High-Balance as opposed to the 1.00 adjuster as applied by FHLMC. High-Balance Gold (improved pricing for High- Balance Cash-out) Requirements to qualify: 30 & 15yr High-Balance Agency Fixed Approved States: CA, CO, GA, TX and WA only Investment property not allowed Subordinate Financing not permitted Minimum FICO % max DTI 80% max LTV Must have LPA Accept/Eligible finding PIW not allowed regardless of AUS findings 2 years tax returns required *0.50 Cash-out hit cumulative with cash-out LTV/FICO adjusters FHLMC Program series Update: 8/16/2018 6

7 LP SUPER CONFORMING ARM (SC) LP Super Conforming ARM Matrix: PURCHASE AND RATE TERM REFINANCE Occupancy Units FICO LTV/CLTV/HCLTV 1, 2 LP /90/90 4 Primary Residence /75/75 Second Home /80/80 2 Investment Property Purchase 80/80/80 2 Rate/term 75/75/ /70/70 CASH-OUT REFINANCE Occupancy Units FICO Primary Residence LP LTV/CLTV/HCLTV /75/ /65/65 Second Home /65/65 Investment Property /65/ /65/65 Program Matrix Notes: 1 unit includes attached/detached single family and PUD, low and high condo, and modular home Field review required for loan scenarios with a loan amount greater than $625,500 and the LTV, CLTV, or HCLTV is greater than 80% or the property is valued at $1,000,000 or more and the LTV, CLTV, or HCLTV is greater than 75% Maximum loan amount equals loan limits as defined by the FHFA Combined loan amount cannot exceed $1,000, When subordinate financing exists, the LTV must be reduced 5% of the maximum CLTV/HCLTV. For example, if the CLTV/HCLTV is 90%, the maximum LTV cannot exceed 85%. 2. Loan amounts > $625,500 are limited to 70% LTV. 3. Loan amounts > $625,500 are limited to 65% LTV. 4. Loan amounts > $625,500 are limited to 80% LTV. FHLMC Program series Update: 8/16/2018 7

8 Product Detail Product Guidelines AUS Loan Prospector (LP) with "Accept" Recommendation A full interior and exterior appraisal is required. For properties in attached condo projects, the appraisal must include 2 comps from outside the project. A field review is required if any of the following applies. o Loan amount is greater than $625,500 and LTV/CLTV/HCLTV is greater than 80%. o If property is valued at $1 million or more and the LTV/CLTV/HCLTV is greater than 75%. Appraisals Loans secured by properties with unpermitted structural additions under the following conditions: The subject addition complies with all investor guidelines; The quality of the work is described in the appraisal and deemed acceptable ( workmanlike quality ) by the appraiser; The addition does not result in a change in the number of units comprising the subject property (e.g. a 1 unit converted into a 2 unit). If the appraiser gives the unpermitted addition value, the appraiser must be able to demonstrate market acceptance by the use of comparable sales with similar additions and state the following in the appraisal: o Non-Permitted additions are typical for the market area and a typical buyer would consider the "unpermitted" additional square footage to be part of the overall square footage of the property. o The appraiser has no reason to believe the addition would not pass inspection for a permit. Recert of values in accordance with Agency guidelines are acceptable. ARM Qualification Fully amortizing 5/1 ARMs: Qualify at the greater of the note rate + 2%, or the fully indexed rate Fully amortizing 7/1 ARMs & 10/1 ARMs: Qualify at the note rate Borrower Eligibility Maximum four(4) borrowers per loan Credit Any debt not reported on the credit report must be documented as being repaid in a satisfactory manner. Credit report inquiries: follow AUS. Must payoff any existing judgments or tax liens. FHLMC Program series Update: 8/16/2018 8

9 Derogatory Credit Derogatory Event Bankruptcy Ch Bankruptcy Ch.13 Multiple Bankruptcy Foreclosure Deed-in-Lieu of Foreclosure, Preforeclosure Sale, and Short Sale LP Waiting Period 4 years 2 years from discharge date 4 years from dismissal date 5 years 7 years 4 years Additional requirements up to 7 years: 90% maximum LTV ratios Purchase, principal residence Limited cash-out refinance, all occupancy types FICO All borrowers must have a minimum of one credit score to be eligible. 620 minimum regardless of AUS findings Financing Concessions Financing concessions for primary residences and second homes must be within the following allowable percentages: o 9% of value with LTV/CLTV ratios less than or equal to 75% o 6% of value with LTV/CLTV ratios greater than 75% up to and including 90% o 3% of value with LTV/CLTV ratios greater than 90% -The maximum financing concession for investment properties is 2% of value regardless of the LTV ratio Value is the lesser of the sales price or appraised value High Cost / High Priced Maximum Loan Amount Not allowed FHFA limit Minimum Loan Amount $453,101 Mortgage Insurance Occupancy Primary residence 1-4 units Second home 1 unit only Investment Property 1-4 units Standard Coverage Required. Lender paid single premium and borrower paid single premium MI is acceptable. Split Premium MI is acceptable. Split MI allows a portion to be collected upfront at closing, and a lesser monthly premium be added to the borrower s monthly mortgage payment. The upfront premium may be paid by the borrower, seller, or a combination of both. Any amount paid by the seller must be included in the maximum seller contribution calculation. A portion of the premium may not be financed. Split Premium MI is allowed up to the max LTV for the product. Financed MI is not eligible. FHLMC Program series Update: 8/16/2018 9

10 Eligible: Single Family (Detached, Attached) PUD (Detached, Attached) Condominium - Warrantable (Detached, Attached) 2-4 Units Property Types Ineligible: Manufactured homes (built on a permanent chassis and attached to permanent foundations Mobile Homes Condominium Conversions that were converted within the last three years Condotels/Hotel Condominiums or PUDs Cooperatives Timeshares Geodesic Domes Working Farms and Ranches Unimproved Land Property currently in litigation Land Trust Condition Rating of C5/C6 or a Quality Rating of Q6. Multiple Financed Properties For second home and investment property transactions: o o Each borrower individually and all Borrowers collectively must not own and/or be obligated on more than four 1-4 properties, including the subject property. Ownership of commercial or multifamily (five or more units) real estate in not included in this limitation. Ratios Determined by AUS FHLMC Program series Update: 8/16/

11 LPA HOME POSSIBLE Description: LTV/CLTV Product Term HPML Loan Purpose Acceptable Property Types Home Possible Home Possible (HP) is a Freddie Mac Community Lending program is designed to meet the needs of low- and moderate-income borrowers by providing maximum financing. The automated version of Home Possible allows a loan to be approved via Freddie Mac s Loan Product Advisor (LPA). Home Possible Advantage (97% LTV Option) Home Possible Advantage (97% LTV Option) is a Freddie Mac Community Lending program designed to meet the needs of low- and moderate-income borrowers by providing more flexibility for maximum financing to meet the needs of borrowers looking for low down payments and flexible sources of funds. The automated version of Home Possible Advantage (97% LTV Option) allows a loan to be approved via Freddie Mac s Loan Product Advisor (LPA). Property Type Max LTV 2 Max CLTV 1 Property Type Max LTV Max CLTV 1 Unit 95% 95% 1 Unit, Condo, PUD 97% 105% 1 2 Unit 95% 95% 1 With an approved Community Second only 3-4 Units 80% 95% to the maximum CLTV noted above. 1 Approved community Seconds only to the Institutional Seconds are not permitted. maximum CLTV noted above. If it exceeds the maximum CLTV noted above, transaction must meet al Home Possible Advantage lending parameters and be coded as such. Institutional Seconds are not permitted. 2 If MI coverage is not available, the maximum CLTV is permitted if the LTV does not exceed 80% Fully Amortized Fixed Rate: year terms only Not Permitted Purchase or Rate & Term refinance only 1 unit including Condominiums & PUDs 2 Units 3-4 Units 1 unit including Condominiums & PUDs FHLMC Program series Update: 8/16/

12 Primary residence Occupancy/ Property Usage Subordinate Financing Mortgage Insurance Note: Ownership in a timeshare, either as a deeded interest or a right-to-use arrangement is not considered ownership in a residential dwelling due to the very limited access to the unit. The borrower(s) may not own any other property as of the mortgage closing date, except in certain circumstances as indicated below: o The borrower inherited their ownership interest in the property and shares ownership with another party; OR. o The borrower owns the property with another party and the debt associated with the property was assigned to the other party by a court order (e.g. a divorce decree); OR o The borrower is a cosigner/guarantor on the related mortgage debt and someone other than the borrower has made payments on the debt associated with the property for the most recent 12 months; as documented with copies of canceled checks or a statement from the lender. First Time Homebuyers (FTHB) Homebuyer education required. Permitted. Any secondary financing subordinated to a Home Possible mortgage must be an Affordable Second. Non-Community Seconds are not permitted. An Affordable Second that does not require a payment before the due date of the 61st payment under the Home Possible mortgage or the Affordable Second is fully forgiven over time (both in principal and interest) may be entered in LPA in the Total Gift Fund field. In all other respects, the Affordable Second must be considered as secondary financing. Although the funds may be treated as a gift in the initial calculation, the dollar amount of the Affordable Second must be reflected as subordinate financing (i.e. included in the CLTV/TLTV) when the loan is closed. LTV >20 years <=20 years LTV >20 years <=20 years % 25% 25% % 25% 25% % 25% 12% % 25% 12% % 12% 6% % 12% 6% Custom MI and Reduced MI Coverage are not permitted and must be at the levels indicated above and not dictated by the LPA findings. MI coverage may not be available at all LTV and FICO levels allowed by this program. Refer to the MI carrier for complete current requirements. Credit Score 620 MIN FICO 660 MIN FICO Maximum DTI Determined by Loan Product Advisor FHLMC Program series Update: 8/16/

13 Maximum Loan Amount Minimum Borrower Contributions Reserves Borrower Eligibility Principal Curtailments Conforming Loan Amounts only High-Balance / Super Conforming not eligible Property LTV/CLTV <= Type 80% 1 Unit None 1 None Units None 1 3% of value LTV/CLTV % 1-Unit: No minimum borrower contribution 1, 2 from borrower Personal Funds is required. 1 3% minimum contributions from borrower s personal funds are required when using any gifts or grants when provided by the Lender. Gifts or grants when provided by the Lender must not be funded through the mortgage transaction, including premium pricing, discount points or fees. 2 3% minimum contributions from borrower s personal funds are not required if the source of the funds are coming from an Employer Assistance Housing Program. Note: Value is defined as the lesser of the sales price or appraised value. 1-Unit: No reserves are required. 2-4 Units: 2 months PITIA reserves are required. Note: For LPA approved mortgages, verify all reserves required by Loan Product Advisor, as stated on the Feedback Certificate. The above required reserves are included in the amount of reserves required by Loan Product Advisor. 1-Unit: No reserves are required. All borrowers must occupy the subject property as a primary residence. The borrower may not, as of the note date, have any ownership interest in any other residential properties except in certain circumstances. Refer to the Occupancy/Property usage topic above for requirements. The borrower must meet income limits. Non-occupant co-borrowers are not permitted. Principal Curtailments are only permitted under the following conditions (effective with loans registered on/after June 22, 2016): Allowed as a result of at closing excess premium rate credits. The amount must be identified on the HUD-1/Closing Disclosure and is limited to the amount of the excess premium rate credit. At closing to refund the overpayment of fees or charges paid by the borrower, in any amount, in accordance with applicable regulatory requirements. At the closing out of the loan proceeds to reduce the actual amount of cashback received at closing on a Rate/Term Refinance. The maximum amount of the curtailment cannot exceed the lesser of $2,500 or 2% of the original loan amount for the subject loan. FHLMC Program series Update: 8/16/

14 Income Limits & Requirements The borrower s annual income cannot exceed 100% of the AMI limits or a higher percentage as designated in high cost areas. No income limits apply if the Mortgaged Premises is located in an Underserved Area. Loan Product Advisor will indicate income eligibility. Employment History Income Types Interested Party Contributions Source of Funds Note: Only the income used to qualify the Borrower may be used to establish that the income limits are not exceeded. A 2-year employment history must be reflected on the application and meet Agency requirements. Wage Earner, Self-employed or Other Income types As Determined by LPA Rental Income - Monthly Operating Income from the Operating Income Statement or net rental income from Schedule E for the subject property is entered under "Gross Monthly Income" in section V of the Uniform Residential Loan Application and may be considered as stable monthly income in qualifying the borrower, provided the borrower meets the reserve requirement. LTV/CLTV LTV/CLTV > 90% 3% LTV/CLTV 75.01% - 90% 6% LTV/CLTV 75% 9% Maximum Contribution Limits If the loan amount plus interested party contribution exceeds 103%, the underwriter must ensure the Contract Section of the Appraisal Report addresses the following: The appraiser analyzed the contract of sale Indicated on the appraisal report the dollar amount and a description of any financial assistance that was paid by any party on behalf of the borrower. Gifts, Grants, community Seconds and Cash-on hand permitted for 1 unit properties only. FHLMC Program series Update: 8/16/

15 Credit Profile Home Buyer Education Landlord Education Appraisal Policy for Unpaid Charge-Offs and Collections: Loans that receive an Accept/Eligible feedback from LPA may follow the requirements for payment of collection and charged-off accounts as outlined in the LPA feedback Certificate. Loans must meet all eligibility requirements for agency sale. Because LPA will not provide messages relating to these accounts the underwriter should assess the impact of the outstanding items outside of the LPA recommendation, and if necessary, request additional documentation and/or require repayment of the account. Judgments and Liens Any account that has reached a judgment or lien status must be paid off prior to closing. Bankruptcy/Foreclosures All loans must meet policy relating to Bankruptcy and Foreclosures in the Credit Analysis section of the Underwriting Manual. Homebuyer Education is required when ALL Borrowers are First-Time Homebuyers and must meet the following requirements: At least one qualifying Borrower must participate in a Homeownership Education program prior to closing. Homeowner Education may NOT be provided by an interested party to the transaction, the originating lender or the seller. Homeownership Education Programs may use different formats and require different lengths of time to complete. The following are acceptable: o Internet (on-line) o Classroom o Face-to-Face The following are acceptable providers for Homeownership Education: Framework E-Home America HUD Approved Nonprofit Housing Counselors Homeownership Education programs that have been developed by mortgage insurance companies Freddie Mac CreditSmart Neighborworks A borrower purchasing a 2-4 unit property must participate in a landlord education program. Landlord Education is not required on refinance transactions. A full interior/exterior appraisal is required. Property inspection waivers are not permitted. Appraisal reports subject to conditions will require completion of work done prior to closing. Appraisal must not be older than 120 days at the time of funding or a recertification of value is required. A new full appraisal is required if more than 180 days old. FHLMC Program series Update: 8/16/

16 LPA OPEN ACCESS (CONFORMING & HIGH-BALANCE) CONFORMING & HIGH-BALANCE LTV/FICO GRID PRIMARY RESIDENCE # of Units Max LTV/CLTV/HCLTV Minimum Credit Score Limited Cash-Out Refinance %/105% 620 Limited Cash-Out Refinance %/125% 660 Second Home # of Units Max LTV/CLTV/HCLTV Minimum Credit Score Limited Cash-Out Refinance 1 105%/105% 620 Limited Cash-Out Refinance %/125% 660 Investment # of Units Max LTV/CLTV/HCLTV Minimum Credit Score Limited Cash-Out Refinance %/105% 620 Limited Cash-Out Refinance %/125% 660 Maximum loan amount is based on annual conforming limits published by the Federal Housing Finance Authority (FHFA) with a $1,000,000 limit overlay regardless of units. limit table.xls FHLMC Program series Update: 8/16/

17 Product Guidelines The refinance must be originated for one or more of the following purposes. The required benefit must be noted in the Underwriter approval rationale. A reduction in the monthly principal and interest payment of the first lien Mortgage. A reduction in the amortization term of the First Lien Mortgage To replace an adjustable rate mortgage (ARM), Interest Only Mortgage or a Balloon/Rest Mortgage with a fixed-rate Mortgage. To replace a fixed-rate mortgage with an ARM only when it results in a reduction in the monthly P&I payment of the first lien mortgage; or Borrower(s) who have met the requirements of a Restructured Mortgage are eligible to be refinanced. Note date must be prior to 05/31/2009 and owned by FHLMC. Maximum DTI - as determined by Loan Prospector LP Accept/Eligible loans only. Properties with resale restrictions are not eligible, other than age restricted properties. At least one of the original borrowers must be retained. Other borrower(s) can be removed or added. Future income not acceptable for qualifying purposes, but may be used as compensating factor. Letter of explanation for all inquiries in the past 120 days is required. The most recent one month, quarterly, or annual statement showing the asset balance must be provided if asset verification is required by LP. A written VOD is not acceptable without bank statements. If HVE is utilized to determine property s value, the borrower (prior to closing) must execute the PFW Disclosure published on our website. Loan amounts greater than $1,000,000 are ineligible New subordinate financing is not permitted. Max incidental cash to borrower must not exceed $ Maximum four (4) borrowers per loan are allowed. Mortgage History - no 30 day lates in the last 12 months on any mortgage trade line. Maximum Payment increase will be determined by LP. Verification of Source of Income- as determined by LP If an appraisal is obtained, only loans where the appraisal is completed as is with the property s conditions rating C1 C6 and the quality of construction rating Q6 is eligible. FHLMC Program series Update: 8/16/

18 HOMEONE FHLMC HOMEONE CONFORMING FIXED RATE PURCHASE AND RATE TERM REFINANCE Occupancy Units FICO * LPA LTV/CLTV/HCLTV Primary Residence /105 1 /97 Program Highlights: HomeOne SM mortgage is a low down payment option that serves the needs of more first-time homebuyers, along with no cash-out refinance borrowers. This mortgage solution allows you to help more first-time homebuyers achieve the milestone of homeownership, regardless of their income levels or geographic location. FEATURES Purchases and no cash-out refinances No borrower geographic or income limits Homebuyer education required for purchase transactions when all borrowers are first-time homebuyers One-unit properties with fixed rate financing only Standard 35% mortgage insurance coverage required for LTVs > 95% Custom mortgage insurance coverage available with a credit fee in price Allows both Affordable Seconds and other secondary financing per Single-Family Seller/Servicer Guide Bulletin requirements Accommodates various property types BORROWER BENEFITS Brings more first-time homebuyers to the table by allowing 3% minimum down payment More flexibility for financing Educational requirements support informed and responsible homeownership Eligible for single family homes, including townhouses and condos FHLMC Program series Update: 8/16/

19 AUS Borrower Eligibility Eligible Properties Eligible Transactions Occupancy MI Requirements Home Buyer Education & Disclosure Permitted Source of Funds Credit Underwriting Requirements Available Terms & Program codes Product Guidelines Loan Product Advisor (LPA) with "Accept" Recommendation Manual underwriting is not allowed. At least one borrower must be a first-time homebuyer* when the mortgage is a purchase transaction mortgage and o Is purchasing the mortgaged premises o Will reside in the mortgaged premises as a primary residence o Had no ownership interest (sole or joint) in a residential property during the three-year period preceding the date of the purchase of the mortgaged premises 1-unit properties, including condominiums and units in Planned Unit Developments (No Manufactured Homes) Purchase & No Cash-Out Refinance only Primary Residence only All borrowers must occupy the mortgaged premises as a primary residence Standard levels required Reduced MI option not offered Required for purchase transactions when all Borrowers are First Time Homebuyers as defined in the Guide. See FHLMC Guide Section for homeownership education requirements. All funds used to qualify borrowers, including, but not limited to, funds for down payment, closing costs and reserves, must come from the eligible sources described in FHLMC Guide Section For Mortgages with interested party contributions, the requirements in FHLMC Section must be met. When lender credit is being used for the mortgage transaction, the requirements in FHLMC Section must be met. At least one borrower on the transaction must have a usable Credit Score. HomeOne Mortgages must be Loan Product Advisor Mortgages with a Risk Class of Accept. Manually underwritten mortgages are not eligible. 30yr Fixed H yr Fixed H FHLMC Program series Update: 8/16/