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FNMA CONVENTIONAL
PRODUCT MATRIX
PURCHASE and RATE & TERM / ARM REFINANCES
Max Loan
Amount
Occupancy
Maximum
LTV
1
1 Unit - Fixed
Maximum
CLTV
1
97%
97%
90%
90%
85%
85%
75%
75%
75%
75%
65%
65%
90%
90%
$417,000
1 Unit - ARM
OWNER
OCCUPIED
2 Units - Fixed
$533,850
2 Units - ARM
3-4 Units - Fixed
3-4 Units - ARM
3 Unit - $645,300
4 Unit - $801,950
1 Unit - Fixed
SECOND HOME
$417,000
1 Unit - ARM
1 Unit - Fixed
Purchase
80%
85%
85%
75%
75%
75%
75%
65%
75%
75%
75%
$417,000
1 Unit- ARM
2-4 Unit Fixed
NON-OWNER
80%
Purchase
2-4 Unit - ARM
2 Unit - $533,850
3 Unit - $645,300
4 Unit - $801,950
1-4 Units - Fixed
Limited
Refinance
$417,000
1-4 Units - ARM
65%
65%
Min FICO
Max Ratios
Minimum Cash
Investments
Mortgage/ Rental
History
Reserves
Subject to DU
Approve/Eligible min
score 620*
DU Approved
Eligible
No minimum down
payment required by
borrower
Evaluated by DU
Evaluated by DU
Subject to DU
Approve/Eligible min
score 620*
DU Approved
Eligible
No minimum down
payment required by
borrower
Evaluated by DU
Evaluated by DU.
Subject to DU
Approve/Eligible min
score 620*
DU Approved
Eligible
Minimum borrower
contribution from borrower's
own funds of 5% is required
Evaluated by DU
Evaluated by DU.
Subject to DU
Approve/Eligible min
score 620*
DU Approved
Eligible
Minimum borrower
contribution from borrower's
own funds of 5% is required
Evaluated by DU
Evaluated by DU.
Subject to DU
Approve/Eligible min
score 620*
DU Approved
Eligible
100% of borrowers own
funds required
Evaluated by DU
Evaluated by DU.
Subject to DU
Approve/Eligible min
score 620*
DU Approved
Eligible
100% of borrowers own
funds required
Evaluated by DU
Evaluated by DU.
Subject to DU
Approve/Eligible min
score 620*
DU Approved
Eligible
100% of borrowers own
funds required
Evaluated by DU
Evaluated by DU.
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12/17/2014
* No Exceptions Allowed
FNMA CONVENTIONAL
PRODUCT MATRIX
CASH OUT REFINANCE
Occupancy
Max Loan
Amount
1 Unit - Fixed
Maximum
LTV
Maximum
CLTV
80%
80%
75%
75%
75%
75%
65%
65%
75%
75%
65%
65%
75%
75%
$417,000
1 Unit - ARM
PRIMARY
2-4 Units - Fixed
2-4 Units - ARM
2 Unit - $533,850
3 Unit - $645,300
4 Unit - $801,950
1 Unit - Fixed
SECOND HOME
$417,000
1 Unit - ARM
1 Unit - Fixed
$417,000
1 Unit - ARM
65%
65%
70%
70%
Min FICO
Max Ratios
Minimum Cash
Investments
Mortgage/ Rental
History
Reserves
Subject to DU
Approve/Eligible min
score 620*
DU Approved
Eligible
Evaluated by DU
Evaluated by DU
Evaluated by DU
Subject to DU
Approve/Eligible min
score 620*
DU Approved
Eligible
Evaluated by DU
Per DU/Additional
reserves required if
borrower owns other
financed properties
Evaluated by DU
Subject to DU
Approve/Eligible min
score 620*
DU Approved
Eligible
Evaluated by DU
Evaluated by DU
Evaluated by DU
Subject to DU
Approve/Eligible min
score 620*
DU Approved
Eligible
Evaluated by DU
6 Mos. PITI be required
for other financed
properties
Evaluated by DU
Subject to DU
Approve/Eligible min
score 620*
DU Approved
Eligible
Evaluated by DU
6 Mos. PITI be required
for other financed
properties
Evaluated by DU
NON-OWNER
2-4 Units - Fixed
2-4 Units - ARM
2 Unit - $533,850
3 Unit - $645,300
4 Unit - $801,950
60%
60%
HIGH BALANCE - PURCHASE and RATE & TERM REFINANCE
Max Loan
Amount
Maximum
LTV
Maximum
CLTV
Min FICO
Max Ratios
Minimum Cash
Investments
Mortgage/ Rental
History
Reserves
1 Unit - Fixed
$625,500
90%
90%
Subject to DU
Approve/Eligible min
score 620*
DU Approved
Eligible
100% of borrowers own
funds required
Evaluated by DU
Evaluated by DU.
2-4 units - Fixed
2 Unit - $800,775
3 Unit - $967,950
4 Unit - $1,202,925
75%
75%
Subject to DU
Approve/Eligible min
score 620*
DU Approved
Eligible
100% of borrowers own
funds required
Evaluated by DU
Evaluated by DU
1 Unit - Fixed
$625,500
65%
65%
Subject to DU
Approve/Eligible min
score 620*
DU Approved
Eligible
100% of borrowers own
funds required
Evaluated by DU
Evaluated by DU
1-4 Units - Fixed
1 Unit - $625,500
2 Unit - $800,775
3 Unit - $967,950
4 Unit - $1,202,925
65%
65%
Subject to DU
Approve/Eligible min
score 620*
DU Approved
Eligible
100% of borrowers own
funds required
Evaluated by DU
Evaluated by DU
Max Loan
Amount
Maximum
LTV
Minimum Cash
Investments
Mortgage/ Rental
History
Reserves
Occupancy
PRIMARY
SECOND HOME
NON-OWNER
HIGH BALANCE - CASH OUT REFINANCE
Occupancy
Maximum
CLTV
Min FICO
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Max Ratios
* No Exceptions Allowed
FNMA CONVENTIONAL
PRODUCT MATRIX
PRIMARY
1 Unit -Fixed
$625,500
60%
60%
Subject to DU
Approve/Eligible min
score 620*
DU Approved
Eligible
100% of borrowers own
funds required
Evaluated by DU
Evaluated by DU
1
LTV/CLTV, and HCLTV Ratios Greater than 95%: For purchase transactions, at least one borrower must be a first-time homebuyer. For limited cash-out refinance, Fannie Mae must be the owner of the existing mortgage.
Max LTV/CLTV/HCLTV is 97%.
CONVENTIONAL Underwriting Guidelines: All loans must receive an "Approve/Eligible" recommendation
Age of Documents
Must be < 120 days old at time of closing, including the appraisal.
ARMS
Not allowed on High Balance.
AUS Recommendations Allowed
DU Approve/Eligible. Manual underwriting is not allowed.
Borrower Eligibility
Permanent and Non-Permanent Resident Aliens allowed with supporting documentation. Foreign Nationals not permitted. All borrowers must have valid social security number.
One borrower must have held title to subject property at least 6 months. Measured from previous Note to new application date. Exception : Delayed financing applies, property was inherited; borrower on title
for a minimum of 24 months. If the property was listed for sale in the past six months, the LTV/CLTV and HCLTV ratios for a cash-out transaction are limited to the lower of 70% or the maximum allowed per the
matrices
Max number of borrower’s is four. DU does not include income or debts of the non-occupant co-borrower. Borrower must qualify on his/her own income, assets (owner occupant ratios apply).
Cash-out Refinance
Co-Borrowers
Loan Terms Available
You may access FNMA Program Guidelines by going to their website as shown below:
https://www.fanniemae.com/singlefamily/originating-underwriting
Click on Originating and Underwriting; Click on Selling Guide; Click on PDF Version Selling Guide (to the Left of the screen), Underwriting Guidelines star in Part B.
The following additional requirements apply for LTV Ratios greater than 95% (LTV/CLTV 97% - Subordinate Financing is not allowed).
1) Fixed-rate loans with terms up to 30 years. High-balance and adjustable-rate loans are not permitted.
2) One-unit principal residence.
3 At least one borrower must be a first-time homebuyer, as indicated on the Uniform Residential Loan Application (Form 1003) in Section VIII., when at least one borrower responds "No" to Declaration M: Have
you had an ownership interest in a property in the last three years?
4) Loans must receive a DU "Approve/Eligible" Decision.
5) Home-buyer Education and Counseling is not required.
6) 35% Mortgage Insurance Coverage is requried. Mortgage Insurance Company allowed: Use Radian only. If Radian cannot approve the loan, please contact the Corporate U/W Manager. Do not use
Genworth.
7) Follow DU Findings for required reserves. Reserves may come from eligible gifts.
8) A minimum borrower contribution from the borrower's own funds is not requried. All funds to complete the transaction can come from a gift.
The follow additional requirements apply for LTV/CLTCV/HCLTV Ratios Greater than 95%. LTV/CLTV 97% (Subordinate Financing is not allowed)
1) The existing loan being refinanced must be owned (or securitized) by Fannie Mae. Documentation may come from: a) The current servicer (if the lender is not the servicer). b)Fannie Mae's Loan Lookup too https://knowyouroptions.com/loanlookup
2) LTV/CLTVHCLTV 95.01 to 97%.
3) Fixed-rate loans with terms up to 30 years. High-balance, adjustable-rate are not allowed.
4) One-unit principal residence.
5) DU "Approve/Eligible" transactions only.
6) 35% Mortgage Insurance Coverage is required. Mortgage Insurance Company allowed: Use Radian only. If Radian cannot approve the loan, please contact the Corporate U/W Manager. Do not use
Genworth.
7) All other standard limited cash-out refinance policies apply.
30, 25, 20 & 15 year Fixed and 5/1 and 7/1 ARMs. ARMS not allowed on High-Balance.
Minimum Loan Size
$70,000
Maximum Number of Properties
Maximum of ten financed properties (including his or her principal residence). Exceptions may be granted on a case-by-case basis.
Guidelines
LTV Ratios Greater than 95% Purchase Transactions
LTV Ratios Greater than 95% - Limited
Cash-Out Refinance Transaction.
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* No Exceptions Allowed
FNMA CONVENTIONAL
PRODUCT MATRIX
Non-Arm's length/Identity of
Interest
Investment properties are not eligible, must be primary residence only.
Properties in the state of Texas
Cash-out Refinance transactions are not allowed 50(a)6. Note: Once a cash-out transaction, always a cash-out. Underwriters must review title history, to verify property has never been a cash out transaction.
Title to provide Survey. Zero cash back to borrower.
Property Listed for Sale
Properties listed for sale within the past 180 days are eligible for rate/term or cash out refinance, however cash out refinances are limited to 70% LTV. Properties listed for sale must have been taken off the
market at least one day prior to the date of the application
Qualifying Rate
Qualify at Note Rate. 5/1 ARM - qualifies at the greater of the start rate + 2% OR the fully indexed rate (index + margin) 7/1 ARM qualifies at the note rate.
CREDIT
Bankruptcy, Chapter 7 or 11
Four (4) years from discharge date or dismissal date. Less than four (4) years regardless if due to extenuating circumstances will receive “Refer with Caution” therefore will require manual underwrite. Manual
underwrite not allowed at this time per RB’s policy. Loan subject to AUS Approval.
Bankruptcy, Chapter 13
Two (2) years from discharge date. Four years from the dismissal date. Less than four years for dismissal, regardless if due to extenuating circumstance will receive “Refer with Caution”, therefore will require
manual underwrite. Manual underwrite not allowed at this time per RB’s policy. Loan subject to AUS Approval.
Multiple Bankruptcy Filings
Five (5) years waiting period is required. Less than five (5) years regardless if due to extenuating circumstance may receive “Refer with Caution”, therefore will require manual underwrite. Manual underwrite not
allowed at this time per RB’s policy. Note: Two or more borrowers with individual bankruptcies are not cumulative, and do not constitute multiple bankruptcies. If DU does not recognize the multiple
bankruptcies, the underwriter must evaluate the file to verify meets the five year waiting period. Loan subject to AUS Approval.
Car Lease Payments
The lease payment must be included in the DTI regardless of the remaining number of payments.
30-Day Charge Accounts
Borrower must have sufficient funds to cover the unpaid balance of all unpaid 30-day charge accounts (e.g., American Express). DU will include the balance in the required cash to close and total funds verified.
Collections/Charge Offs
Allowed for 1-unit principal residence only. Purchase or limited cash out refinance. Income for qualifying borrower cannot come from self-employment. Not allowed for High-Balance. Borrower with non-traditional
credit and a credit score must contribute more than 50% of the qualifying income. Qualifying credit score must be inputted into LOS as zero.
Contingent Liability (Co-Signed Loans)
The borrower and the individual making the payments must both be liable for the debt repayment. To exclude the payment from the DTI ratio, 12 months canceled checks or bank statements are required as
evidence of timely payment by the other co-obligator on the note/loan. The person making the payments must be a co-obligator on the loan.
Debts/Minimum Payment
The greater of $10 or 5% of balance for revolving/installment accounts if payment not reporting. Include all revolving payments regardless of the number of payments remaining.
HELOC: If not shown on the credit report, payments on a HELOC with an outstanding balance may be calculated at 1% of the outstanding balance or use billing statement.
Disputed Trades
If DU does not issue a message specific to the trade line with a dispute, it is not required to be addressed. 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 credit risk assessment. To ensure the disputed trade line is considered, a new credit report must be obtained with the trade line(s) no longer reported as disputed
and resubmit the loan case file to AUS. If the trade line DOES NOT belong to the borrower, or the reported payment history is inaccurate, written documentation must be obtained, satisfying the AUS condition
and included in the loan file. Under these circumstances, when the information is validated, AUS may require no further action.
DU Loans: Co-borrowers without credit
scores
Allowed for 1-unit principal residence only. Purchase or limited cash out refinance. Income for qualifying borrower cannot come from self-employment. Not allowed for High-Balance. Borrower with non-traditional
credit and a credit score must contribute more than 50% of the qualifying income. Qualifying credit score must be inputted into LOS as zero.
Extenuating Circumstance
Foreclosure
For applications taken on or after 08/16/14: Examples of documentation that can be used to support extenuating circumstances include documentation that confirm the event such as a copy of a divorce decree
(i.e., significant loss of income due to divorce), medical reports or bills, notice of job layoff, job severance papers, death of major wage earner, etc., and documentation that illustrate factors that contributed to
the borrower’s inability to resolve the problems that resulted from the event such as a copy of insurance papers or claim settlements, property listing agreements, lease agreements, tax returns (covering the
periods prior to, during and after a loss of employment). Etc. Borrower must also provide a letter of explanation detailing the extenuating circumstance.
Must be > seven (7) years, unless documentation is provided to prove the foreclosure information is inaccurate, or due to extenuating circumstances. For applications taken on or after 08/16/14: Extenuating
circumstance: A three-year (3) waiting period is permitted with documentation supporting the extenuating circumstance: Maximum LTV/CLTV/HCLTV is limited to the lesser of 90% or the maximum
LTV/CLTV/HCLTV allowed per the Eligibility matrix. Purchase, principal residence. Limited Cash-out refinance for all occupancy types. Input code in DU of “Confirmed CR FC EC” for Extenuating circumstance
and “Confirmed CR FC incorrect” for inaccurate credit. Refer to Extenuating Circumstance Section of this matrix for additional requirements. Loan subject to AUS Approval. Foreclosure and Bankruptcy on the
Same Mortgage. If a mortgage debt was discharged through a bankruptcy, the bankruptcy waiting periods may be applied if the underwriter obtains the appropriate documentation to verify that the mortgage
obligation was discharged in the bankruptcy. Otherwise, the greater of the applicable bankruptcy or foreclosure waiting period must be applied. Must show the foreclosure was included in the total dollar amount
of the bankruptcy and was included in the bankruptcy discharge.
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* No Exceptions Allowed
FNMA CONVENTIONAL
PRODUCT MATRIX
Inquiries
Credit inquiries within last 90 days require written explanation.
Judgments/Liens
Judgments, garnishments, and liens must be paid off at or prior to closing. Documentation of the satisfaction must be provided.
Min Trades/Auth User Accounts
An authorized user account does not count as a trade line, unless receive 12 months evidence of borrower making the payment.
Mortgage History
Per DU.
Payoff of Revolving Debt & installment
Loans
In order to qualify without the monthly payment on the current balance, a revolving account must be paid off and closed. Revolving account paid through escrow is acceptable, however, must provide a credit
supplement or letter from the creditor to evidence the account is closed prior to funding. If the revolving account is paid off, but not closed, the monthly payment shown on credit report is used for qualifying and
must be included in the DTI. Installments debts may be paid off and cannot be paid down to less than 10 months for qualifying.
Prior Restructure Reflected in credit
history
At least two (2) years has elapsed since completion date with re-established acceptable credit for subject property.
Short Sale/ Pre-Foreclosure/
Foreclosure /Deed in Lieu of
At least four (4) years since completion date of short sale, Deed-in-Lieu of Foreclosure/Charge-off and re-established acceptable credit score. For applications taken on or after 08/16/14: Two (2) years is
allowed if supporting documentation proves Extenuating Circumstances. No specific input code to DU is required. Refer to Extenuating Circumstance Section of this matrix for additional requirements. Loan
subject to AUS Approval.
Student Loans
All efforts should be made to obtain payment of deferred student loans. If unable to obtain, 2% of balances will be used as payment in determining DTI
Appraisal
Full Appraisal Required, interior & exterior inspection. 1004 for SFR, 1025 for 2-4 Units. 1007 Single Family Comparable Rent Schedule required for rental 1 unit investment properties. Transferred appraisals
require AIR Certification and TIL from previous lender.
Condominiums - CPM Review
Condo Project Manager (CPM) is a web-based tool designed to help lenders determine if a project will meet Fannie Mae's eligibility requirements. New and newly converted condo projects consisting of
attached units located in Florida are not eligible for CPM review. Projects that consist of four or fewer units have specific eligibility requirements under the Expedited Review process. Refer to FNMA guidelines
for requirements. With the exception of two-to-four unit projects, lenders must review the homeowners' association actual budget for established projects and the projected budget for new projects. Budget
provides for the funding of replacement reserves for capital expenditures and deferred maintenance (at lest 10% of the budget); and budget provides adequate funding for insurance deductible amounts.
Insurance requirements must meet FNMA's guidelines. Follow all requirements shown below in section called "Condominiums" . For projects in which the units are not separately metered for utilities, the
underwriter must determine that having multiple units on a single meter is common and customary in the local market where the project is located, and confirm that the project budget includes adequate funding
for utility payments (not applicable for two-four unit projects). Refer to FNMA guideline for additional requirements. The project must be located on contiguous parcels of land. It is acceptable for a project to be
divided by public or private streets. For investment property transactions on attached units in established projects (including two-to-four unit projects), at least 50% of the total units in the project must be
conveyed to principal residence or second home purchasers. This requirement does not apply if the subject mortgage is for a principal residence or second home.
Attached new and newly converted condos in the state of Florida are not allowed under CPM review.
Condominiums - Established
1) At least 90% of the total units in the project have been conveyed to the unit purchasers;
2) The project is 100% complete, including all units and common elements;
3) The project is not subject to additional phasing or annexation; and
4) Control of the HOA has been turned over to the unit owners.
5) Attached units in Established Condo Projects in the state are Florida are limited to the following LTV Ratios:
----Principal Residence (PERS Approved or CPM Review - 95% LTV. Limited Review max LTV of 75%.
----Second home - (PERS Approved or CPM Review - 90%. Limited Review max LTV of 70%.
----Investor - (PERS Approved or CPM Review - 85%. Limited Review - Not Eligible.
COLLATERAL
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* No Exceptions Allowed
FNMA CONVENTIONAL
PRODUCT MATRIX
Condominiums
Project (all units, common elements, and amenities) and related facilities owned by a Master Association are complete and not subject to any additional phasing. At least 90% of the total units have been
conveyed to the unit purchasers other than the developer; and The unit owners control the homeowners association (HOA). No manufactured homes in the project. If the borrower occupies the unit as a primary
residence or second home, there is no owner-occupancy requirement for the condominium project. If used as an investment property, at least 51% percent of the total number of condominium units must have
been conveyed to purchasers (other than the developer or a successor to the developer) who occupy their unit as a primary residence or second home. Operating budget is required. No more than 15% total
units can be 30 or more days delinquent on the HOA dues. The budget must reflect a line item reflecting at least 10% of the total income for the project is held for replacement reserves. No single entity may
own more than 10% of the total units in the project. In the case of a project that has fewer than ten units, no single entity may own more than one unit. Refer to FNMA's selling guide for more information. The
following changes are effective December 13, 2014 with DU Version 9.2:
1) CPM and Full Review have been consolidated into one review method.
2) The pre-sale requirement for new projects is now 50%.
3) The number of days for which 15% of unit owners may be past due on common expense assessments has been increased to 60 days. Note: In a two-to-four unit project, no unit owners may be 60 or more
days past due on their HOA common expense assessments. This ratio is calculated be dividing the number of units with common expense assessments that are past due by 60 or more days by the total
number of units in the project.
4) Per RB policy, minimum square feet of 500 is required.
5) All condominium projects require the homeowner's association to provide their IRS Tax Identification Number (TIN).
6) Commercial space is allowed and limited to 25% for all condo projects, allowing a single entity to own up to two (2) units in a project consisting of five (5) to 20 units, specifying the situations under which up to
15% of non-incidental business income is allowed, and permitting live-work projects that allow unit owners to operate small home-based businesses from their residential dwelling.
7) No single entity may own more than the following units in the project:
----Projects with 2-4 units - 1 unit.
----Projects with 5-20 units - 2 units
----Projects with 21 or more units - 10%
Condominium (Ineligible Projects)
Ineligible Projects: Refer to Selling Guide - B4-2.1-02
Condominiums (Limited Review Attached)
Limited Review: Must be located in either an attached unit in an established condo project, including 2-4 unit condo projects, or a detached unit in a new or established condo project (including those projects
with a mixture of attached and detached units). The unit must secure a mortgage that is originated on a spot loan basis. The mortgage must meet the required LTV/CLTV/HCLTV ratios for the occupancy type.
Investment property or manufacture homes not allowed. Project is not an ineligible project. New attached condo projects are not allowed. LTV/CLTV/HCLTV - Primary Residence DU Approved/Eligible less
than or equal to 80%; Second Home less than or equal to 75%; Investment Properties are not eligible. If the project is a detached unit, the unit securing the mortgage must be 100% complete. Attached new
and newly converted condos in the state of Florida are not allowed under limited review.
Condominiums (Limited Review Detached)
Condominiums that require FNMA to
approve the project
The mortgage is secured by a single detached unit in a condo project. Not a manufactured home. Not an ineligible project. Primary residence, second home or investment property, subject to DU
Approve/Eligible. Appraiser must comment on, and reflected in the appraisal report, any effect that buyer resistance to the condo form of ownership has on the market value of the individual unit. If project is
new, the appraiser used as a comparable sale at least one detached condo unit, which may be located either in a competing project or in the subject project, if the condo unit is offered by a builder other than the
one that built the subject unit. Property covered by type of property and flood insurance coverage required for single-family detached dwellings, if the condo unit consists of the entire structure as well as the site
and air space; or the project's master property and flood insurance policies, if the condo unit consists only of the air space for the unit and the improvements and site are considered to be common areas or
limited common areas.
The following projects must be submitted to FNMA for project approval (branch and/or broker must submit the project to FNMA for approval): New and newly converted condo projects consisting of attached
units located in Florida; New and newly converted, non-gut rehabilitation condo projects. Maximum LTV limits for Attached units in New and Newly converted condo projects in Florida are:
1) Principal Residence 95% LTV
2) Second Home 90% LTV
3) Investment 85% LTV
Project Type Code
E
Description
Established PUD Project
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* No Exceptions Allowed
FNMA CONVENTIONAL
PRODUCT MATRIX
Condominium Codes to be entered on
FNMA 1008 Transmittal
F
New PUD project
P
Limited Review - New condo project
Q
Limited Review - Established condo
project
R
Full Review with CPM - New condo
project
S
Full Review with CPM - Established
condo project
T
Fannie Mae Review - Condo project
that received a Final Project Approval
through PERS.
Unit and Project Type
Attached condo unit in a new or newly converted project, including an attached
unit in a condo project that includes a mixture of attached and detached units.
Attached condo unit in an established project, including an attached unit in a
condo project that includes a mixture of attached and detached units.
Detached condo unit in a new or established project, including a detached unit
in a condo project that includes a mixture of attached and detached units.
Condominiums - Project Review
Methods
Project Review Methods
Full Review (CPM Review) or Fannie Mae Review through the Project
Eligibility Review Service (PERS). Attached new and newly converted
condos in the state of Florida are not allowed under CPM review.
Limited Review only for a unit that is a
1) Principal residence with an LTV ratio less than or equal to 80%, or
2) Second home with an LTV ratio less than or equal to 75%.
3) Full Review with CPM.
Limited Review
Attached or detached unit in a new or established two-to-four-unit condo project. Based on the mortgage transaction and project characteristics, two-tofour-unit condo projects may be reviewed using either;
1) Limited Review, or
2) Full Review with CPM.
Unit in a co-op project.
Per RB policy - Not allowed.
1) Condo or Co-Op project that contains manufactured Homes.
2) PUD project that contains single-wide manufactured homes.
3) Newly-converted non-gut rehabilitation project (projects with attached units
only) that contain more than four residential units.
4) New or newly converted condo project consisting of attached units located in
Florida.
Fannie Mae Review through PERS. Note: Condo or Co-Op that
contains manufactured homes is not allowed per RB policy. All, PUD
projects that contains single-wide manufactured homes is not allowed
per RB policy.
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* No Exceptions Allowed
FNMA CONVENTIONAL
PRODUCT MATRIX
Condominiums - New Condo Project
A project for which one or more of the following is true:
1) Fewer than 90% of the total units in the project have been conveyed to the unit purchasers:
2) The project is not fully completed, such as proposed construction, new construction, or the proposed or incomplete conversion of an existing building to a condo;
3) The project is newly converted; or
4) The project is subject to additional phasing or annexation.
A project comprised of two, three, or four residential units in which each unit is evidenced by its own title and deed. A two-to-four-unit condo project may be either a new or established project and may be
comprised of attached and/or detached units. Additional eligibility requirements apply for two-to-four-unit projects: 1) no single entity may own more than one unit within the project; 2)All units, common
Condominiums: Two-to-four-unit Project elements, and facilities within the project; 3) All units, common elements, and facilities within the project; 4)All but one unit in the project must have been conveyed to owner-occupied principal residence or
second home purchasers; and 5)The units in the project must be owned in fee simple or leasehold, and the unit owners must be the sole owners of, and have rights to the use of, the project's facilities, common
elements, and limited common elements. Refer to FNMA program guidelines for additional requirements.
Seller Contribution
Principal Residence and Second Home Transactions - LTV/CTLV: > 90% = 3%; 75.01% - 90% = 6%; 75% or less = 9%. Investment Properties: All LTV/CLTV = 2%
ARMS
Not allowed on High Balance.
Collateral
A One-Unit Residential Field Review is required if the loan amount is greater than $625,500 and the LTV/CLTV/HCLTV ratio is greater than 80%; or the property is valued at $1,000,000 or more and the
LTV/CLTV/HCLTV ratio is greater than 75%. Use the lowest of the two values.
Condominiums
For properties in attached condominium projects, the appraisal must contain two comparable sales from projects outside of the subject's project.
HIGH-BALANCE
INCOME/ASSETS
Amended Tax Returns
Original filed returns and the amended return are required. Tax returns must have been amended prior to the application date and execution of the purchase contract. CANNOT BE AMENDED TO QUALIFY.
Assets / Reserves
Per A.U.S. Note: FNMA allows gift funds for reserves to exceed ratios of 45%, subject to DU Approved/Eligible.
Bonus, Overtime, and Commission
Income
Borrower must have a two-year consecutive history of receiving bonus/overtime/commission, and the income must be likely to continue.
Current Primary Pending Sale (not
closing prior)
Payment for both properties must be used to qualify the borrower with 6 months PITI in reserves after closing for both properties. With 30% equity in departure property as supported by appraisal 2 months
reserves is acceptable.
Current Primary converted to Second
Home
Payment for both properties must be used to qualify the borrower with 6 months PITI in reserves after closing for both properties.
Up to 75% of the rental income may be used to offset the mortgage payment with documented 30 % equity in the existing property as documented by a drive-by-appraisal. The rental income must be
Departure Property - Converting Current
documented with a copy of the fully executed lease agreement and copy of receipt of the security deposit from the tenant and proof of deposit into borrower’s account is required. Two (2) months PITI reserves
Res to Investment with 30% equity
per subject and retained residence is required.
Departure Property - Converting Current
Res to Investment without required 30% Payment for both properties must be used to qualify the borrower(s) and 6 months PITIA reserves are required for both properties
equity
Employed by Family Member
Requires full documentation regardless of AUS. Two (2) years tax returns, W-2’s, one month’s current paystubs with 30 days of earnings, Written VOE, and evidence does not own more than 25% interest in the
company.
Employment Gaps
Follow DU Findings report including income documentation requirements.
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* No Exceptions Allowed
FNMA CONVENTIONAL
PRODUCT MATRIX
Gifts
Permitted on Primary and 2nd Home. Gifts are not permitted on 3-4 units and non-owner properties. Donor must be immediate family member, fiancé or domestic partner. The donor may not be affiliated with
any other interested party to the transaction. A gift can be provided by: a relative, defined as the borrower's spouse, child, or other dependent, or by any other individual who is related t the borrower by blood,
marriage, adoption, or legal guardianship or a fiancé, fiancée, or domestic partner.
Gift Equity
A gift of equity is acceptable for principal residence. Not eligible for non-owner or new construction properties. The donor must provide a gift letter and the gift property must not be a distress sale as evidenced
by VOM and equity must be listed on the HUD-1 Settlement Statement.
Income Documentation
Follow A.U.S. Additional documentation at Underwriter discretion
Joint Accounts
If an account is held jointly a letter will be required from the joint account holder to verify our borrower has 100% access to those funds. This is required regardless of the relationship.
Large Deposits
Large Deposits are defined as a single deposit that exceeds 50% of the total monthly income for the loan. Note: If the deposits exceed 100% of borrower’s total income, the underwriter may require an LOE
and source of the funds. If bank statements reflect automatic deposits of all income and additional deposits are reflected outside of borrower’s monthly income, the underwriter may request an LOE and source
of substantial deposits outside of borrower’s total income.
Multiple Properties to the Same
Borrower
No limitation on the number of properties owned if the property is the borrower’s principal residence. Second Home and investment property is limited to one to four financed properties. Investor and second
home borrowers with five to ten financed properties
Rental Income
Follow A.U.S.
Mortgage Insurance (MI)
Mortgage Insurance coverage is required for loans with LTV ratios greater than 80%. Refer to table below. Mortgage Insurance types: borrower paid monthly mortgage insurance and lender single paid and
monthly paid mortgage insurance.
MORTGAGE INSURANCE (MI)
LTV Range
Transaction Type
Fixed-rate, term ≤ 20 years
Fixed-rate, term > 20 years
80.01 - 85.00%
6%
12%
85.01 - 90.00%
12%
25%
90.01 - 95.00%
25%
30%
SECOND HOME OR INVESTMENT PROPERTIES:
BORROWERS WITH FIVE TO TEN FINANCED PROPERTIES MUST MEET THE FOLLOWING ELIGIBILITY REQUIREMENTS:
Transaction Type
Number of Units
Maximum LTV/CLTV/HCLTV Ratio
Minimum Credit Score
Purchase/Limited Cash-out Refinance
1 Unit
FRM: 75%
ARM: 65%
High-Balance: 65%
720
Cash-Out Refinance
(only if within 6 months of purchase and all delayed financing
exception requirements are met.)
1 Unit
FRM: 70%
ARM: 60%
720
Cash-Out Refinance (>6 months since purchase)
1 Unit
Ineligible
N/A
INVESTMENT PROPERTIES:
BORROWERS WITH FIVE TO TEN FINANCED PROPERTIES MUST MEET THE FOLLOWING ELIGIBILITY REQUIREMENTS:
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* No Exceptions Allowed
FNMA CONVENTIONAL
PRODUCT MATRIX
Purchase/Limited Cash-Out Refinance
2-4 Units
FRM: 70%
ARM: 60%
High-Balance FRM: 65%
High-Balance ARM: 60%
Cash-Out Refinance
(only if within 6 months of purchase and all delayed financing
exception requirements are met.)
2-4 Units
FRM: 65%
ARM: 60%
720
Cash-Out Refinance (>6 months since purchase)
1-4 Units
Ineligible
N/A
720
INVESTOR OR SECOND HOME:
BORROWERS WITH FIVE TO TEN FINANCED PROPERTIES MUST MEET THE FOLLOWING ELIGIBILITY REQUIREMENTS:
Bankruptcy or Foreclosure
Standard FNMA requirements as shown above, apply (effective with DU 9.2 Version scheduled to be released the weekend of December 13, 2014).
DU Refi Plus
DU Refi Plus mortgage loans are exempt from the above policies.
Mortgage Delinquencies
Standard FNMA requirements as shown above, apply (effective with DU 9.2 Version scheduled to be released the weekend of December 13, 2014).
Rental Income
Follow FNMA Standard guidelines. (effective with DU 9.2 Version scheduled to be released the weekend of December 13, 2014).
Minimum Reserve Requirements
5-10 financed properties: Six (6)months for each second home or investment property.
For Internal Use Only - Not for consumer distribution. This document is not an advertisement as defined in 12 CFR 1026.2. All products are subject to credit and property approval. Guidelines are subject to change at any time and without prior notice. Residential Bancorp,
Inc. 5686 Dressler Rd NW, One Bancorp Building, North Canton, OH 44720, NMLS # 210853, California BRO CRMLA # 4131217, CFL#603J643, Equal Housing Lender.
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* No Exceptions Allowed