FNMA Conventional Conforming Product Offering Transaction Type Number of Fixed Rate Cash-Out Refinance Second Home Adjustable Rate 1 Unit 97/97% 90/90% 2 Unit 85/85% 75/75% 3 4 75/75% 65/65% 1 Unit 80/80% 75/75% 2 4 75/75% 65/65% 1 Unit 90/90% 80/80% Cash-Out Refinance 1 Unit 75/75% 65/65% Investment Property 1 Unit 85/85% 75/75% 2 4 75/75% 65/65% Limited Cash-Out Refinance 75/75% 65/65% 1 Unit 75/75% 65/65% Cash-Out Refinance 2 4 70/70% 60/60% FNMA HomeReady Transaction Type Number of Fixed Rate Adjustable Rate 1 Unit 97/97% 90/90% 2 Unit 85/85% 75/75% 3 4 75/75% 65/65% Minimum FICO 620 Minimum FICO 620 FNMA Home Affordable Refinance Program (HARP) Transaction Type Number of Fixed Rate Adjustable Rate Minimum FICO 1 Unit 97/97% 90/90% 2 Unit 85/85% 75/75% 3 4 75/75% 65/65% 620 1
Additional Information: Appraisals If the fieldwork waiver is exercised on a HARP loan, FNMA accepts the value of the property as submitted to DU. GMC will not require repairs to be completed when an appraiser appraises a property subject-to repairs. Borrower Benefit The borrower must receive a documented benefit from the HARP loan. The benefit requirement can be met in four different ways based on changes in the terms between the existing mortgage loan and the new mortgage loan. If any of the following are met, the borrower benefit provision has been satisfied: reduction in the borrower s monthly principal and interest payment; reduction in the interest rate; reduction in the amortization term; or movement to a more stable product. If the borrower s payment, interest rate, or amortization period is staying the same or increasing, the borrower must be moving to a more stable mortgage product. Generally, a more stable product would include movement from: A mortgage loan with an interest-only feature to a fully amortizing mortgage product (provides amortization of principal and accumulation of equity in the property); An adjustable-rate mortgage (ARM) to a fixed-rate mortgage (FRM) (elimination of the potential for payment shock); An ARM to a new ARM with an initial fixed period of five years or more, and equal to or greater than that of the existing mortgage (elimination of pending payment shock and movement to the same or longer initial fixedinterest rate period); or A 30-year FRM to a 15-, 20-, or 25-year FRM (accelerated amortization of principal and building of equity). Movement to a more stable product would not include an extension of the mortgage term, for example, a 20-year FRM to a 30-year FRM. This type of transaction is permissible if, and only if, there is a reduction in the mortgage payment or a reduction in the interest rate. Credit History Borrowers must be current with their monthly payments at the time of the refinance; and, May not have been delinquent in the most recent 6-month period; and, May not have had more than 1 x 30 on their mortgage in months 7 12. Limited Cash-Back Borrowers are limited to $250 cash-in-hand from the refinance. Any amounts due to the borrower over $250 must be credited to the borrower s unpaid principal balance on the new loan as a curtailment. There is no limit to the amount of the curtailment. Any funds due to the borrower after closing due to an error that exceed $250 must also be applied as a curtailment. Subordinate Financing There is no limit to CLTV or HCLTV for existing subordinate financing. All existing subordinate financing must be resubordinated by the current lien holder without regard to any limit on CLTV or HCLTV. The amount for the subordinate financing may not exceed the existing unpaid principal balance. Existing subordinate financing may not be included in the new first loan amount. 2
Freddie Mac Conventional Conforming Product Offering Transaction Type Number of Fixed Rate Adjustable Rate Cash-Out Refinance Second Home 1 Unit 95/95% 95/95% 2 4 Unit 80/80% 80/80% 1 Unit 80/80% 80/80% 2 4 75/75% 75/75% 1 Unit 85/85% 85/85% Cash-Out Refinance 1 Unit 75/75% 75/75% Investment Property Limited Cash-Out Refinance Cash-Out Refinance 1 Unit 85/85% 85/85% 2 4 75/75% 75/75% 1 Unit 75/75% 75/75% 2 4 70/70% 70/70% Freddie Mac Home Possible Transaction Type Number of Fixed Rate Adjustable Rate Minimum FICO 620 Minimum FICO 1-2 95/95% 90/90% 3-4 95/95% NA Cash-Out Refinance NA NA Additional Information: Property types include: 1-4 units, condos and planned-unit developments. Down Payment can come from a variety of sources, including friends and family, and employer-assistance programs. No reserves required on 1-unit properties. Loan programs include: 15- to 30-year fixed-rate mortgages, 5/1, 7/1 and 10/1 ARMs. No cash-out refinancing option is available for borrowers who occupy the property. Borrowers with incomes above AMI may be eligible in high-cost areas. No income limits in underserved areas. Transaction Type FICO Rate and Term Refinance Cash Out 580* 580* 3 620 FHA Product Offering Loan Amount/Property Types LTV/CTV/HCLTV 96.5% 97.75% 580* 85% Based on county loan limits. https://entp.hud.gov/idapp/html/hicostlook.cfm Property Types: SFR/PUDs, 2-4 units as long as 1 unit is owner occupied, FHA approved condos.
Additional Information: DO/DU or LP AUS approvals permitted on credit qualifying loans. Manual underwrites allowed with a Refer AUS finding only and justifiable per agency guidelines. All loans, pricing is based on the loan amount of the note (base loan + financed UFMIP). Streamline Refinances Non-credit qualifying 580* 97.75% Based on county loan limits. https://entp.hud.gov/idapp/html/hicostlook.cfm Property Types: SFR/PUDs, 2-4 units, condos. FHA condo approval not required on streamlines without an appraisal. Credit qualifying 580* 97.75% FHA Streamline Refinances are eligible regardless of the current servicer. Streamline with an appraisal allowed up to 97.75%. Streamlines without an appraisal are limited to the UPB + MIP refund. Investment properties are allowed as no-credit qualifying streamlines, without an appraisal. VA Product Offering Transaction Type FICO Loan Amount LTV/CTV/HCLTV 580* 100% VA loans must comply with VA requirements. The final loan amount is based on the Veteran s current Cash Out 580* 100% available eligibility. Additional Information: DO/DU or LP AUS approvals permitted on credit qualifying loans. Manual underwrites allowed with a Refer AUS finding only and justifiable per agency guidelines. Pricing is based on the loan amount of the note (base loan + financed VAFF). VA lender guidelines can be found at http://benefits.va.gov/warms/pam26_7.asp VA loan limits can be found at http://www.benefits.va.gov/homeloans/purchaseco_loan_limits.asp Streamline Refinances IRRRL 580* 100% VA loans must comply with VA requirements. The final loan amount is based on the Veteran s current available eligibility. VA IRRRLs are eligible regardless of the current servicer. Pricing is based on the loan amount of the note (base loan + financed VAFF). Investment properties allowed on VA IRRRLs. Appraisal or AVM not required. Six monthly payments must have been made prior to loan closing. *FHA and VA FICO Information FICO = 580 619 Max DTI for occupant borrower(s) is 45%. Loan must receive an AUS Approve/Eligible. Multiple bankruptcies, foreclosures, short sales or deed-in-lieus are not allowed. Only 1 x 30 allowed on installment lates since a bankruptcy. Any past due accounts must be current at time of closing. 4
Any derogatory, disputed accounts with a balance must be resolved and the dispute removed. The dispute may not show on the AUS findings as pending. No lates on mortgage(s) after a bankruptcy or foreclosure. Unpaid judgments must be satisfied prior to closing, unless in a repayment plan with at least three monthly payments made satisfactorily. Three payments cannot be made at one time to satisfy this requirement. The amount of the judgment must be included in the borrower s DTI. Tax liens must be paid in full or they must be in a documented repayment plan with at least three monthly payments made satisfactorily. Three payments cannot be made at one time to satisfy this requirement. The amount of the tax liens must be included in the borrower s DTI. Unpaid collections with a cumulative outstanding balance $2,000 (including any accounts of the non-borrowing spouse in a community property state, unless excluded by state law) require the following: o Documentation that the account has been paid in full using funds from an acceptable source; or, o o A payoff statement if the account will be paid in full through the new loan; or, A copy of the repayment agreement with the creditor. The amount of the collections must be included in the borrower s DTI. If the payment amount is not available, calculate the monthly payment using 5% of the outstanding balance. NOTE: Medical collection accounts, both disputed and no-disputed, are not included in the cumulative total. Delinquent child support must be paid in full or be current through a payment plan. Borrowers must have a 12-month housing expense history documented with 0 x 30. Borrowers living free with family are ineligible. Residual income must meet VA guidelines in order to demonstrate ATR/QM. FICO = 620 639 Max DTI for all borrowers is 50%. Loan must receive an AUS Approve/Eligible. USDA Product Offering Eligibility Matrix Description The Rural Housing program is designed to assist borrowers with safe, sound, and sanitary housing for primary occupancy in rural areas. Borrowers incomes may not exceed state and local Rural Development (RD) median income limits. The property must be designated as rural by RD. Borrower Eligibility Guarantee Fees Income Limits Loan Purpose LTV Requirements Mortgage Insurance Occupancy Product Types US Citizens Non-US Citizen if the borrower meets the proper criteria (see requirements below) Occupant borrowers only all borrowers applying for the mortgage must occupy the subject property 1.00% Up-Front Fee 0.35% Annually Guarantee Fees may be paid by the buyer or seller or financed into the loan amount. Borrower s adjusted income should not exceed 115% of the area s median income limits established by RD. https://eligibility.sc.egov.usda.gov/eligibility/welcomeaction.do, rate and term refinance (RD to RD only). Cash out refinances are not allowed. Up to 102.75% LTV (Over 100% LTV only if the guarantee fee is financed.) The loan amount may exceed the appraised value by the amount of the financed guarantee fee. Loans are guaranteed by RD. only 30-year fixed rate, fully amortized 5
1 Unit Property Eligibility Condos approved by FHA, VA or FNMA https://eligibility.sc.egov.usda.gov/eligibility/welcomeaction.do Qualifying FICO 620 Qualifying Ratios GUS approval or 29/41% with a GUS Refer or on a manual underwrite. Ratio waivers may be granted with RD approval. Underwriting GUS approval or manual underwriting Additional Information: Closing Costs may be financed into the loan as long as the appraisal is sufficient to cover the loan-to-value. Non-US Citizen requirements: Primary occupancy only; and, Must have a valid social security number; and, Must be eligible to work in the United States; and, Must provide all proper documentation. Additional information can be found on the USDA Lender Portal at https://usdalinc.sc.egov.usda.gov/ Transaction Type FICO Rate and Term Refinance 1 2 1 2 Jumbo Loans Qualified Mortgages (QM) Fixed Rate and Hybrid ARM Products LTV/CLTV/HCLTV, Rate and Term Refinance Loan Amount 760 85% $1,000,000 720 80% $1,500,000 720 75% $2,000,000 720 70% $2,500,000 700 70% $1,000,000 700 65% $1,000,000 720 60% $1,500,000 760 85% $1,000,000 720 80% $1,500,000 720 75% $2,000,000 720 70% $2,500,000 700 70% $1,000,000 700 65% $1,000,000 720 60% $1,500,000 Transaction Type FICO Cash-Out Refinance LTV/CLTV/HCLTV Loan Amount Cash-Out 6
720 70% $1,000,000 $250,000 Cash Out* 1 700 65% $1,000,000 $250,000 720 65% $1,500,000 $500,000 720 60% $2,000,000 $500,000 720 50% $2,500,000 $750,000 Second Home, Rate and Term Refinance Transaction Type FICO Loan Amount LTV/CLTV/HCLTV 1 720 80% $1,000,000 or Rate and Term Refinance 1 720 75% $1,000,000 70% $1,500,000 65% $2,000,000 50% $2,500,000 Second Home Cash-Out Refinance Fixed Rate (20-, 25- and 30-year amortization) Transaction Type FICO Cash-Out LTV/CLTV/HCLTV Loan Amount 60% $1,000,000 $250,000 Cash-Out Refinance* 1 740 55% $1,500,000 $500,000 50% $2,000,000 $750,000 Investment Property, Rate and Term Refinance, and Cash-Out Refinance Transaction Type FICO Cash-Out LTV/CLTV/HCLTV Loan Amount 1-4 740 70% $1,000,000 N/A Rate and Term 1-4 740 70% $1,000,000 N/A Refinance Cash-Out Refinance* 1-4 740 60% $1,000,000 $250,000 7
Additional Information: Minimum loan amount is $424,101 for 1 unit properties, or $1 above the conforming loan limits for properties with 2-4 units. Loan amounts between conforming loan limits and Agency High Balance loan limits are eligible except on loans with LTVs greater than 80%. Loan amounts > $2,000,000 are available on 20-, 25- and 30-year fixed product only. *Texas 50 Cash-Out NOT allowed. Transactions with LTVs greater than 80%: MI not required Secondary financing not allowed DTI 36% Non-permanent resident aliens not eligible Gift funds not allowed Agency High Balance loan amounts are ineligible Escrow/impound accounts required for LTVs greater than 80% unless prohibited by applicable laws Second Home - : LTV/CLTV/HCLTV between 75.01% and 80% limited to 20-, 25- and 30-year fixed rate product Second Home - Cash-Out: No rental income for the subject property showing on Schedule E of the borrower s tax return No other financed REO other than subject property and primary residence 20-, 25- and 30-year fixed rate product only Investment Property -, Rate and Term Refinance, and Cash-Out Refinance: Gift funds not allowed Transaction must be arms-length Appraiser to provide rent comparable schedule First-Time Homebuyers not eligible 20-, 25- and 30-year fixed rate product only Florida condos limited to 50% LTV/CLTV/HCLTV Eligible States: Alabama, Arizona, Arkansas, California, Colorado, Florida, Kansas, Michigan, Missouri (delegated only), New Mexico, Oklahoma, Oregon, and Texas Appraisal Requirements: $2,000,000 - one full appraisal > $2,000,000 two full appraisals Refinance $1,500,000 one full appraisal > $1,500,000 two full appraisals 8
Reserve Requirements (# of months of PITIA) Occupancy Loan Amount # of Months $1,000,000 with LTV 80% 6 $1,000,000 with LTV > 80% 12 $1,000,001 - $1,500,000 9 $1,500,001 - $2,000,000 12 $2,000,001 - $2,500,000 24 $1,000,000 12 Second Home $1,000,001 - $1,500,000 18 $1,500,001 - $2,000,000 24 $2,000,001 - $2,500,000 36 Investment Property $1,000,000 18 $1,000,000 with LTV 80% 12 First-Time Homebuyer $1,000,000 with LTV > 80% 18 $1,000,001 - $1,500,000 15 ARM Products All loan amounts Additional 3 months Additional six (6) months PITIA reserves are required for each additional 1-4 unit financed residential property owned. Reserves are not required for properties not included in the count of multiple financed properties. Jumbo Loans Select 90 QM Fixed Rate (20-, 25- and 30-year amortization) Transaction Type FICO Loan Amount LTV/CTV/HCLTV, Rate and Term Refinance and 1 720 90% $1,500,000 Rate and Term Refinance MI not required Loans are manually underwritten - no AUS findings considered No AUS documentation waivers allowed Secondary financing not allowed Texas 50 Cash-Out NOT allowed All borrowers must be US Citizens with valid social security numbers Permanent resident aliens allowed with evidence of lawful residency & employed in the US for the past 24 months Non-permanent resident aliens not allowed Gift funds not allowed Minimum loan amount is $1 over the current conforming/high balance limits Escrow/impound accounts required for LTVs greater than 80% unless prohibited by applicable laws 20-, 25- and 30-year fixed rate product only First-Time Homebuyer restrictions: loan amount is $1,000,000 Minimum FICO is 740 Max DTI is 38.00% Reserves required 15 months 9
Reserve Requirements (# of months of PITIA) Transaction DTI # of Months First-Time Homebuyer DTI 38.00% 15 DTI 38.00% 12 Non-First-Time Homebuyer DTI 38.01% - 43.00% 18 Additional six (6) months PITIA reserves are required for each additional 1-4 unit financed property owned. of two additional properties. Reserves are not required for properties not included in the count of multiple financed properties. Guardian Mortgage a division of Sunflower Bank, N.A. Serving generations since 1965. 2701 N. Dallas Parkway Suite 180 Plano, TX 75093 www.guardianmortgageonline.com Contact your AE for all program requirements. 10