Last Updated: May 7th, 2015
Fannie Mae Program
Conforming Balance– 1 to 4 Financed Properties
(See 5 to 10 Financed Properties on Page 5)
Summary
Product Types
30yr, 25yr, 15yr and 10yr Fixed 5/1 & 7/1 ARMs
For Conforming Loan Amounts, view State/County limits: https://www.fanniemae.com/singlefamily/loan-limits
Conforming Balance
Primary Residence
Loan Purpose
Minimum FICO
Units
1
Purchase or
Refinance
Rate/Term
620
2
3-4
1
Refinance
Cash-Out
1
620
2-4
Max LTV
Max CLTV
Fixed 97% 1
ARM 90%
Fixed 85%
ARM 75%
Fixed 75%
ARM 65%
Fixed 80%
ARM 75%
Fixed 75%
ARM 65%
Fixed 97% 1
ARM 90%
Fixed 85%
ARM 75%
Fixed 75%
ARM 65%
Fixed 85%
ARM 75%
Fixed 75%
ARM 65%
See below for details on 95.01% - 97% LTV restrictions
Second Home
Loan Purpose
Minimum FICO
Units
Max LTV
Max CLTV
Purchase or
Refinance
Rate/Term
620
1
Fixed 90%
ARM 80%
Fixed 90%
ARM 80%
Refinance
Cash-Out
620
1
Fixed 75%
ARM 65%
Fixed 75%
ARM 65%
Correspondent Fannie Mae Program
Nations Direct Mortgage, LLC.
Page 1 of 8
These guidelines are not a commitment to lend. Program, rates, terms and conditions are subject to change without notice. This information is intended for Mortgage and
Real Estate Professionals only and should not be distributed to consumers or other third parties. Nations Direct Mortgage, LLC.
Last Updated: May 7th, 2015
Investment Property
Loan Purpose
Minimum FICO
Units
620
1
720
1
620
2-4
620
1-4
Purchase
Refinance
Rate/Term
Refinance
Cash-Out
1
620
2-4
Max LTV
Max CLTV
Fixed 80%
ARM 75%
Fixed 85%
Fixed 75%
ARM 65%
Fixed 75%
ARM 65%
Fixed 75%
ARM 65%
Fixed 70%
ARM 60%
Fixed 80%
ARM 75%
Fixed 85%
Fixed 75%
ARM 65%
Fixed 75%
ARM 65%
Fixed 75%
ARM 65%
Fixed 70%
ARM 60%
*** In the absence of a guideline, please refer to the Fannie Mae Seller Guide****
Correspondent Fannie Mae Program
Nations Direct Mortgage, LLC.
Page 2 of 8
These guidelines are not a commitment to lend. Program, rates, terms and conditions are subject to change without notice. This information is intended for Mortgage and
Real Estate Professionals only and should not be distributed to consumers or other third parties. Nations Direct Mortgage, LLC.
Last Updated: May 7th, 2015
Fannie Mae Program
High Balance– 1 to 4 Financed Properties
(See 5 to 10 Financed Properties on Page 5)
Summary
Product Types
30yr, 25yr, 15yr and 10yr Fixed 5/1 & 7/1 ARMs
For High Balance Loan Amounts, view State/County limits: https://www.fanniemae.com/singlefamily/loan-limits
High Balance
Primary Residence
Loan Purpose
Minimum FICO
Units
Max LTV
Max CLTV
620
1
Fixed 90%
ARM: 75%
Fixed 75%
ARM: 65%
Fixed 90%
ARM: 75%
Fixed 75%
ARM: 65%
620
2-4
620
1
60%
60%
Minimum FICO
Units
Max LTV
Max CLTV
620
1
65%
65%
Minimum FICO
Units
Max LTV
Max CLTV
620
1-4
65%
65%
Purchase or
Refinance
Rate/Term
Refinance
Cash-Out
Second Home
Loan Purpose
Purchase or
Refinance
Rate/Term
Investment Property
Loan Purpose
Purchase or
Refinance
Rate/Term
Correspondent Fannie Mae Program
Nations Direct Mortgage, LLC.
Page 3 of 8
These guidelines are not a commitment to lend. Program, rates, terms and conditions are subject to change without notice. This information is intended for Mortgage and
Real Estate Professionals only and should not be distributed to consumers or other third parties. Nations Direct Mortgage, LLC.
Last Updated: May 7th, 2015
Requirements and Eligibility
95.01% - 97% LTV
Restrictions
•
•
•
•
•
•
•
•
•
SFR, Condo & PUD, no units
Purchase & Limited Cash-Out transactions
1 borrower must be a first time homebuyer (no ownership in the last 3 years) on Purchase transactions
Fannie must be the owner of the loan for Limited Cash-Out transactions
Fixed rate only
High Balance and ARM loans are not permitted
CLTV for subordinate community seconds up to 105% on refinance transactions
35% Mortgage Insurance required
Reserve requirements are per DU
Allowable with DU
Approve/Eligible
•
•
•
•
•
•
•
•
•
•
•
•
Credit follows DU on Approve/Eligible
No max debt ratios
Up to 4 financed properties allowed on investment transactions
Non-Arm’s length second home and investment transactions (excluding new construction)
Unemployment income eligible
Employment gaps and recent college graduates allowed
Rental income does not require landlord history
VOD’s in lieu of bank statements
Property Inspection Waivers (PIW’s) allowed if DU approves, up to 80% LTV.
Un-permitted property additions okay
Vesting held in trust acceptable
Gift funds may source from overseas
•
•
•
•
•
•
•
DU Only
Must be Approve/Eligible; No manual underwrites
48 months since discharge/dismissal for Chapter 7 or 13
60 months since most recent discharge/dismissal for Borrowers with multiple Bankruptcies
All borrowers must have a credit score and traditional credit history.
Trade line requirements determined by DU findings.
Inquiries: A detailed explanation letter that specifically addresses both the purpose and outcome of each
inquiry is required. If additional credit was obtained, a verification of that debt/payment must be obtained
and the DU must be resubmitted
Student Loans: Any student loan currently in default status must have a working repayment plan or be
paid in full at the time of close.
Revolving Credit: If there is no payment on the credit report for revolving credit, use the greater of $10
or 5% of the balance on credit.
AUS
Bankruptcy
Credit Report
•
•
Delayed Financing
Exception
Delayed Financing Exceptions are prohibited.
Correspondent Fannie Mae Program
Nations Direct Mortgage, LLC.
Page 4 of 8
These guidelines are not a commitment to lend. Program, rates, terms and conditions are subject to change without notice. This information is intended for Mortgage and
Real Estate Professionals only and should not be distributed to consumers or other third parties. Nations Direct Mortgage, LLC.
Last Updated: May 7th, 2015
Foreclosure / Deed
in Lieu / Short Sale /
Restructured Loans
Foreclosure:
• 84 months or more since completion, or
• 36 months since completions with a maximum 90% LTV or program maximum, whichever is less, when
the foreclosure was due to documented extenuating circumstances and subject to following restrictions:
o Purchase of primary residence only
o Rate/term transactions are permitted for all occupancy types subject to eligibility guidelines.
• Mortgage debt discharged through a BK follow the BK waiting period not the foreclosure waiting period
Deed-in-Lieu of Foreclosure/Short Sale requires the following:
• 4-year waiting period
Short Payoffs, Modifications and/or Restructured loans require the following:
• The borrower must make 24 timely payments between the time of the restructure to the time of refinance
• Credit implications are in the FICO
Major Adverse
Accounts
Collections/Charge-off:
• $5,000 max per individual item or in aggregate.
• For investment properties, $250 max per individual item or $1K in aggregate.
• Mortgage Charge-offs require a 4 year waiting period
Disputed Accounts: If there is a disputed account on credit, follow DU requirements:
• If the trade line does not belong to the borrower or the reported payment history is inaccurate, NDM
will require written documentation from the creditor or credit reporting company validating the
information being reported is not accurate. When the information is validated, DU may require no further
action.
• If the trade line does belong to the borrower and the reported payment history is accurate, the disputed
trade line(s) must be considered in the risk assessment. To ensure the disputed trade line is considered,
the borrower will have to take the appropriate steps to remove the dispute status with the creditor. NDM
will have to obtain a new credit report with the trade line(s) no longer reported as disputed and resubmit
the case file to DU.
Correspondent Fannie Mae Program
Nations Direct Mortgage, LLC.
Page 5 of 8
These guidelines are not a commitment to lend. Program, rates, terms and conditions are subject to change without notice. This information is intended for Mortgage and
Real Estate Professionals only and should not be distributed to consumers or other third parties. Nations Direct Mortgage, LLC.
Last Updated: May 7th, 2015
Fannie Mae 5+ Financed Properties Program
Conforming & High Balance, 5 – 10 Maximum Financed Properties
Summary
Product Types
30-year Fixed; 15-year Fixed
For Conforming Loan Amounts, see the State/County limits at https://entp.hud.gov/idapp/html/hicostlook.cfm.
Conforming Balance
Second Home
Loan Purpose
Purchase or
Refinance
Rate/Term
Minimum FICO
Units
Max LTV
Max CLTV
720
1
75%
75%
Units
Max LTV
Max CLTV
1
2-4
75%
70%
75%
70%
Investment Property
Loan Purpose
Minimum FICO
Purchase or
Refinance
Rate/Term
720
720
High Balance
Second Home
Loan Purpose
Minimum
FICO
Units
Max LTV
Max CLTV
720
1
65%
65%
Minimum
FICO
Units
Max LTV
Max CLTV
720
1-4
65%
65%
Purchase or
Refinance
Rate/Term
Investment Property
Loan Purpose
Purchase or
Refinance
Rate/Term
Correspondent Fannie Mae Program
Nations Direct Mortgage, LLC.
Page 6 of 8
These guidelines are not a commitment to lend. Program, rates, terms and conditions are subject to change without notice. This information is intended for Mortgage and
Real Estate Professionals only and should not be distributed to consumers or other third parties. Nations Direct Mortgage, LLC.
Last Updated: May 7th, 2015
Requirements and Eligibility
Allowable with DU
Approve/Eligible
•
•
•
•
•
•
•
•
•
•
•
•
•
Credit follows DU on Approve/Eligible
No max debt ratios
Up to 10 financed properties allowed on investment transactions
Non-Arm’s length second home and investment transactions
Hand written paystubs or W2s acceptable
Unemployment income eligible
Employment gaps and recent college graduates allowed
Rental income not requiring landlord history
VOD’s in lieu of bank statements
Property Inspection Waivers (PIW’s) allowed if DU approves
Un-permitted property additions okay
Vesting held in trust acceptable
Gift funds may source from overseas
Bankruptcy or
Foreclosure
•
Borrower cannot have any history of bankruptcy or foreclosure within past 7 years
•
•
•
All borrowers must have a credit score and traditional credit history.
Trade line requirements determined by DU findings.
Inquiries: A detailed explanation letter that specifically addresses both the purpose and outcome of
each inquiry is required. If additional credit was obtained, a verification of that the debt/payment must
be obtained and the DU must be resubmitted
Student Loans: Any student loan currently in default status must have a working repayment plan to be
paid in full at the time of close.
Revolving Credit: If there is no payment on the credit report for revolving credit, use the greater of
$10 or 5% of the balance on credit.
Credit Report
•
•
Correspondent Fannie Mae Program
Nations Direct Mortgage, LLC.
Page 7 of 8
These guidelines are not a commitment to lend. Program, rates, terms and conditions are subject to change without notice. This information is intended for Mortgage and
Real Estate Professionals only and should not be distributed to consumers or other third parties. Nations Direct Mortgage, LLC.
Last Updated: May 7th, 2015
Deed-in-Lieu of Foreclosure/ Short Sale requires the following:
• 4-year waiting period
Deed in Lieu / Short
Sale / Restructured
Loans
Major Adverse
Accounts
Mortgage Rating
Reserves
4506-T
Properties Located in
Texas
Short Payoffs, Modifications and/or Restructured loans require the following:
• The borrower must make 24 timely payments between the time of the restructure to the time of
refinance
• Credit implications are in the FICO
Collections/Charge-off:
• $5,000 max per individual item or in aggregate.
• For investment properties, $250 max per individual item or $1K in aggregate.
• Mortgage Charge-offs require a 4 year waiting period
Disputed Accounts: If there is a disputed account on credit, follow DU requirements:
• If the trade line does not belong to the borrower or the reported payment history is inaccurate, NDM
will require written documentation from the creditor or credit reporting company validating the
information being reported is not accurate. When the information is validated, DU may require no
further action.
• If the trade line does belong to the borrower and the reported payment history is accurate, the
disputed trade line(s) must be considered in the risk assessment. To ensure the disputed trade line is
considered, the borrower will have to take the appropriate steps to remove the dispute status with the
creditor. NDM will have to obtain a new credit report with the trade line(s) no longer reported as
disputed and resubmit the case file to DU.
• No delinquencies (30 days or greater) on any mortgage loans.
• 6 months PITI for each property owned
• All loans require a 4506-T executed and returns validated.
• W-2 validation allowed for borrowers with only w-2 income
• Primary Residences (“Homestead Properties”): Purchases and rate-term refinances only. Cash-out
refinance transactions not allowed.
• Second Homes and Investment Properties: Eligible for purchases, rate term refinances, and cash out
refinances.
Correspondent Fannie Mae Program
Nations Direct Mortgage, LLC.
Page 8 of 8
These guidelines are not a commitment to lend. Program, rates, terms and conditions are subject to change without notice. This information is intended for Mortgage and
Real Estate Professionals only and should not be distributed to consumers or other third parties. Nations Direct Mortgage, LLC.