LOANS MUST BE RUN THROUGH GUS*

AmeriSave USDA USDA 30 Rural Housing 30 year Fixed Only *ALL LOANS MUST BE RUN THROUGH GUS* Loan Purpose Loan Amount Eligible Borrowers Ineligible Borrowers Purchase Guaranteed: $453,100 US Citizens n-occupant co-borrowers Rate/Term Refinance Direct/Leveraged: Not currently Permanent Resident Aliens Partnerships Streamline Refinance offered, contact USDA directly for details n-permanent Resident Aliens Trusts Appraisal/Inspections One full appraisal is required to be completed by an FHA appraiser; both the sales comparison and cost approach must be developed to determine value and all photos are to be in color; no black and white or copies of photos are allowed Appraisals are good for 120 days To determine property eligibility: http://eligibility.sc.egov.usda.gov; click on Single Family Housing under Property Eligibility Buydowns Guaranteed: Permanent interest rate buydowns are allowable. However, it cannot be included in the loan unless the borrower is under 80% of the Area Median Income. Discount Points are not allowed and any LPC must be added to the final price of the loan Temporary buydowns are allowable only when the seller or third party pays the cost Discount points are not allowed to be paid by the borrower. Discount points for a lower rate can be considered a permanent buydown of interest if paid by the seller and must be considered interested parties contribution. Closing Costs Gift funds allowed from family (non-household) members only A verifiable gift letter is required stating that no repayment is required and satisfactory receipt of funds has been documented Discount can be financed. Credit All borrowers must be screened using the CAIVRS system Borrower must have good credit with minimal delinquency, non-traditional credit may only be used to supplement minimal credit depth at Underwriter s discretion more than 1 x 30 in the last 12 months on consumer credit, or 1 x 30 in the last 24 months on housing expenses collections, charge-offs or judgements allowed in the last 12 months, collections over $250 (individual) or $1000 (aggregate) must be paid off outstanding tax liens or delinquent government debt allowed bankruptcy or foreclosure allowed in the last 36 months All loans must be run through GUS with the exception of Pilot Refinances Credit score of 600 required with GUS approval and 640 for manual underwrites (If GUS findings state a manual underwrite is not acceptable or not allowed for exception due to ratio or credit score the loan may not be approved) Documentation Borrowers must sign and date USDA Form RD 3555-21(06-15) Request For Single Family Housing Loan Guarantee Lead Paint Disclosure for homes built prior to 1978 are required An IRS form 4506-T must be signed, completed and dated at application by all borrowers IRS transcripts for the time period covered by the required income documentation must be obtained prior to the loan closing for all borrowers Education/Counseling All borrowers and co-borrowers must participate in an approved homebuyer education program if required by GUS findings or the RHS Office issuing the conditional commitment General Community property states require a spouse s credit report for all non-borrowing spouses. Community property states are: AZ, CA, ID, LA, NV, NM, TX, WA, WI Income Limits To determine income and eligibility limits: http://eligibility.sc.egov.usda.gov Guaranteed: 115% of Area Median Income (AMI); Low-to-moderate-income, click on Guaranteed under Income Limits Income Calculator: Click on Single Family Housing under Income Eligibility for income calculator Interested Party Contributions Guaranteed: 6% allowed towards recurring, non-recurring closing costs, prepaids and/or the funding fee 1 Effective Date: March 13, 2018

Maximum LTV/CLTV Guaranteed: Loan Amount can include: The maximum loan amount is the greater of Sales Price or Appraisal which can include sales price, closing costs (all recurring & non-recurring closing costs up to 6%) plus Guaranteed Funding Fee. * CLTV to 105% allowed when utilizing Government Agency Subordinate Financing. This is defined as: Federal, State, local government and non profit agencies considered as instrumentalities of government. The USDA Mortgage when combined with any second mortgage or junior lien from government/non profit listed above may NOT result in any cash back to the borrower. Note: Refinances can only be used when refinancing current Rural Housing Guaranteed loans, Leveraged loans may not be refinanced under the Guaranteed Rural Housing program. Occupancy Owner Occupancy only Property Eligible Properties SFR, PUDs, Condos, Modular Housing The property must not have income producing buildings or land Eligible properties must be located in rural areas as defined by the local RHS Office. These areas generally have populations less than 10,000 (20,000 if located outside an MSA) The property must have direct, all weather access to a street, road or driveway Ineligible Properties Manufactured Homes Co-ops Qualifying Ratios and Reserves Loan Type: Guaranteed Minimum Reserves: None Max DTI: 29%/41% may be exceeded to 50% with GUS approval. Manual underwrites may not exceed 29%/41% Underwriting Method Method Eligible Required Result Manual Yes Approve GUS Yes Accept Upfront USDA Guarantee Fee and Annual Guarantee Fee Upfront Guarantee fee is 1.0% effective 10/01/2016 Annual fee is.35% effective 10/01/2016 2 Effective Date: March 13, 2018

AmeriSave USDA STREAMLINE REFINANCE (Non-Assist and Assist Program) Non-Assist Program Loan Purpose Loan Amount Eligible Borrowers Ineligible Borrowers Streamline Refinance Cannot exceed original loan US Citizens n-occupant co-borrowers amount (principal & interest, reconveyance Permanent Resident Aliens Partnerships fee and upfront guarantee fee) n-permanent Resident Aliens Trusts Appraisal/Inspections appraisal is required for existing guaranteed program Add/Remove Borrowers One original borrower must remain on the new loan Additional borrowers may be added to the new loan Cash Back cash out is permitted Closing Costs Closing costs cannot be included in the new loan amount discount can be financed Credit All borrowers must be screened using the CAIVRS system Current mortgage loan paid as agreed 180 days prior to loan application date Borrower must meet credit requirements of HB-1-3555 SFH Guaranteed Loan Program Technical Handbook Chapter 10 Lenders may request a debt ratio exception with strong documented compensating factors in Chapter 11 are met. Note: a satisfactory payment history for the existing mortgage is a strong compensating factor Community property states require a spousal credit report (Community property states are: AZ, CA, ID, LA, NV, NM, TX, WA, WI) Bankruptcy & Foreclosure: must meet credit requirements per Chapter 10: Chapter 7 in the previous 3 years, Chapter 13-Plan that has not been completed (still in repayment) or has been completed for 2 years or greater Documentation Lead Paint Disclosure for homes built prior to 1978 is required Borrowers must sign and date USDA Form RD 3555-21(06-15) Request For Single Family Housing Loan Guarantee An IRS form4506-t must be signed, completed and dated at application by all borrowers IRS transcripts for the time period covered by the required income documentation must be obtained prior to the loan closing for all borrowers Current payoff statement on the existing USDA loan must be included in every file General Community property states require a spouse s credit report for all non-borrowing spouses. Community property states are: AZ, CA, ID, LA, NV, NM, TX, WA, WI Income Limits To determine income and eligibility limits: http://eligibility.sc.egov.usda.gov Guaranteed: 115% of Area Median Income (AMI); Low-to-moderate-income, click on Guaranteed under Income Limits Income Calculator: Click on Single Family Housing under Income Eligibility for income calculator Include Subsidy Recapture Maximum LTV/CLTV and Loan Term New loan amount cannot exceed original loan amount (principal & interest, re-conveyance fee and Upfront Guarantee fee) 30-year loan term Mortgage Late Payment Fees Eligible to Be Refinanced Net Tangible Benefit Fixed interest rate at or below interest rate of current loan Occupancy Owner Occupancy only 3 Effective Date: March 13, 2018

Property Properties that were previously in an eligible area and are no longer in an eligible are able to refinance Qualifying Ratios and Reserves GUS Accept GUS Refer with debt ratio waiver to meet HB-1-3555 SFH Guaranteed Loan Program Technical Handbook Chapter 11 Monthly housing expense to income may not exceed 29% and the total debt to income ratio may not exceeds 41% Refinance a Direct Leveraged Loan Direct Leveraged loans are not eligible for streamline Seasoning Requirements Loan must have closed 12 months prior to loan application date Borrower must have made at least twelve (12) consecutive monthly payments on the loan being refinanced Subordinate Silent Seconds or Subsidy Recapture Due Yes Underwriting Method Method Eligible Required Result GUS Yes Accept Unpaid Fees to the Current Servicer That Maybe Included in the Payoff Unpaid fees to current Servicer may not be financed into the new loan Upfront USDA Guarantee Fee and Annual Guarantee Fee Upfront Guarantee fee is 1.0% effective 10/01/2016 Annual fee is.35% effective 10/01/2016 4 Effective Date: March 13, 2018

AmeriSave USDA STREAMLINE REFINANCE (Non-Assist and Assist Program) Assist Program Loan Purpose Loan Amount Eligible Borrowers Ineligible Borrowers Streamline Refinance Principal & Interest, closing US Citizens n-occupant co-borrowers costs, funds to establish tax and Permanent Resident Aliens Partnerships insurance escrow and upfront guarantee fee n-permanent Resident Aliens Trusts Appraisal/Inspections appraisal is required for existing guaranteed program Add/Remove Borrowers Additional borrowers may be added to the new loan only Cash Back cash out is permitted Closing Costs Reasonable Closing costs can be included in the new loan amount Discount can be financed Credit All borrowers must be screened using the CAIVRS system Existing mortgage must be paid as agreed for 12 months prior to loan request to loan application If a credit report is ordered to determine timely mortgage payments, other credit accounts will not be reviewed Documentation Lead Paint Disclosure for homes built prior to 1978 is required An IRS form4506-t must be signed, completed and dated at application by all borrowers Borrowers must sign and date USDA Form RD 3555-21(06-15) Request For Single Family Housing Loan Guarantee Current payoff statement on the existing USDA loan must be included in every file A new appraisal is not required for existing guaranteed loan borrowers. A direct loan borrower will be required to obtain a new appraisal if they have received payment subsidy to determine the amount of subsidy recapture due. If subsidy recapture is due, the amount cannot be included in the new refinanced loan. Subsidy recapture must be paid with other funds or subordinated to the new guaranteed loan General Community property states require a spouse s credit report for all non-borrowing spouses. Community property states are: AZ, CA, ID, LA, NV, NM, TX, WA, WI Income Limits To determine income and eligibility limits: http://eligibility.sc.egov.usda.gov Guaranteed: 115% of Area Median Income (AMI); Low-to-moderate-income, click on Guaranteed under Income Limits Income Calculator: Click on Single Family Housing under Income Eligibility for income calculator Include Subsidy Recapture Maximum LTV/CLTV and Loan Term New loan amount can include: Principal & Interest, closing costs, funds to establish tax and insurance escrows and Upfront Guarantee fee 30-year loan term Mortgage Late Payment Fees Eligible to Be Refinanced Net Tangible Benefit $50.00 or greater reduction in new PITI (including annual fee) as compared to current PITI payment Occupancy Owner Occupancy only Property Properties that were previously in an eligible area and are no longer in an eligible are able to refinance Qualifying Ratios and Reserves ratio calculation required 5 Effective Date: March 13, 2018

Refinance a Direct Leveraged Loan Direct Leveraged loans are not eligible for streamline Seasoning Requirements Loan must have closed 12 months prior to loan application date Borrower must have made at least twelve (12) consecutive monthly payments on the loan being refinanced Subordinate Silent Seconds or Subsidy Recapture Due Yes Underwriting Method Method Eligible Required Result GUS NOT ALLOWED N/A Manual Yes Approve Unpaid Fees to the Current Servicer That Maybe Included in the Payoff Unpaid fees to current Servicer may not be financed into the new loan Upfront USDA Guarantee Fee and Annual Guarantee Fee Upfront Guarantee fee is 1.0% effective 10/01/2016 Annual fee is.35% effective 10/01/2016 USDA Compensating Factors A. Compensating factors for USDA Purchases Acceptable Compensating Factors and Supporting Documentation: The proposed PITI is equal to or less than the applicant s current verified housing expense for the 12-month period preceding loan application. Verification of housing expenses may be documented on a verification of rent (VOR) or credit report. The VOR or credit report must include the actual payment amount due and report no late payments or delinquency for the previous 12 months. Rent or mortgage payment histories from a family member will not be considered unless 12 months of canceled checks, money order receipts, or electronic payment confirmations are provided. A history of less than 12 months will not be considered an acceptable compensating factor. Accumulated savings or cash reserves available post loan closing are equal to or greater than 3 months of PITI payments. A verification of deposit (VOD) or two most recent consecutive bank statements document the average balance held by the applicant are required. Cash on hand is not eligible for consideration as a compensating factor. The applicant(s) (all employed applicants) has been continuously employed with their current primary employer for a minimum of 2 years. A Request for Verification of Employment (VOE) (Form RD 1910-5, comparable HUD/FHA/VA or Fannie Mae form, or other equivalent), or VOEs prepared by an employment verification service (e.g., The Work Number.) must be provided. This compensating factor is not applicable for self-employed applicants. B. Compensating factors for USDA Guaranteed refinance transactions For manually underwritten refinance loans, the lender must thoroughly document the compensating factors that justify an exception. Higher repayment ratio exceptions are feasible when an applicant demonstrates compensating factors indicating the capacity, willingness and ability to pay mortgage payments in a timely manner. The presence of compensating factors does not strengthen a ratio exception when multiple layers of risk, such as marginal credit history, are present in an application. The following are examples of compensating factors: Credit score of 680 or higher. Credit scores of 680 and higher can be documented as a standalone compensating factor for a debt ratio waiver request, if no additional risk layers are present (e.g., adverse credit, or payment shock, etc.). The borrower(s) has successfully demonstrated the ability to pay housing expenses equal to or greater than the proposed monthly housing expense for the new mortgage over the past 12 months. The borrower(s) has demonstrated a conservative attitude toward the use of credit. The borrower(s) has demonstrated an ability to accumulate savings comparable to the difference between current housing costs and projected costs. Cash reserves post-closing. The use of retirement accounts as compensating factors and as cash reserves is limited to 60% of the vested amount of the retirement asset to offset potential withdrawals by the applicant(s). Retirement accounts that restrict withdrawals to circumstances involving the borrower s employment separation, retirement or death should not be considered as a compensating factor or as cash reserves. Continuous employment with the current primary employer. 6 Effective Date: March 13, 2018