Freddie Mac

Fannie Mae

Available Loan Types

15, 20 and 30-year fixed-rate

5/1, 7/1 and 10/1 LIBOR ARM

Cannot refinance from a fixed-rate to an ARM product

15, 20, 30 and 40-year fixed-rate

5/1, 7/1 and 10/1 LIBOR ARM

Cannot refinance from a fixed-rate to an ARM product

Amortization Type

Fully amortized

Interest-only not allowed

Fully amortized

Interest-only not allowed

Minimum Credit Score

No minimum loan score, except;

620 minimum loan score when new principal and interest (P&I) payment is more than 20% greater than the existing

P&I payment

Standard policies for adverse credit do not apply.

You cannot currently be involved in a bankruptcy or foreclosure

No minimum loan score

Note: DU applies requirements and checks eligibility

Loan Eligibility

No restriction

Loan must receive an Approve/Eligible response from DU

Loan Purpose

Rate/term refinance

Rate/term refinance

Occupancy

Primary and Investment Properties (1-4 unit)

Second home (1-unit)

Limit on number of financed properties does apply

Must be the same occupancy type as when Wells Fargo sold the original mortgage to Freddie Mac, except that change in occupancy from second home or investment to primary is allowed

Primary and Investment Properties (1-4 unit)

Second home (1-unit)

No limit on number of financed properties

Eligible Property Types

Single family residence

2-4 Units

Condominium

Co-op

PUD

Resort condos and condotels not allowed

Single family residence

2-4 Units

Condominium

Co-op

PUD

Resort condos and condotels not allowed

LTV/CLTV Limits

105% LTV

Unlimited CLTV (existing 2nd mortgage may be any amount)

You may pay down your mortgage with your own funds in order to qualify for the mortgage in the event the LTV exceeds 105%

105% LTV

You may pay down your mortgage with your own funds in order to qualify for the mortgage in the event the LTV exceeds 105%

Income Ratios

Determined by automated underwriting system when you apply

Determined by automated underwriting system when you apply

Income and Assets Documentation Requirements

None - (Stated Income Stated Asset)

When new principal and interest (P&I) payment is more than 20% greater than the existing P&I payment made most frequently in the last 12 months, income documentation is required.

Asset documentation is required if funds are needed to pay down first mortgage, pay off/down subordinate financing or pay off other debts, including judgments.

Salaried: One paystub and verbal VOE required

Self-employed/Commission: one-year federal tax return

Assets may be verified if requested by underwriter

IRS 4506T Form

IRS 4506T signed and dated at application and closing on all loans.

IRS 4506T will only be processed on loans with income documentation required (P&I increasing more than 20%)

IRS 4506T to be signed and dated at application and closing on all loans.

IRS 4506T must be processed prior to closing on all loans.

Verification of Employmet

Verbal VOE required on all loans (unless retired)

Verbal VOE required on all loans (unless retired)

Loan Amounts

Limit on closing costs, financing costs, pre-paids and escrows of $2,500

Examples:

Payoff amount: $229,545

Actual closing costs, etc: $2496

Maximum loan amount: $232,041

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Payoff amount: $352,006

Actual closing costs, etc: $3672

Maximum loan amount: $354,506

Required cash to close: $1172

Excess funds due to the actual payoff being lower than the estimated payoff or actual closing costs being lower than estimated closing costs must be applied as a principal curtailment, not to exceed $2000

No limit on closing costs, financing costs, pre-paids and escrows

Payoff amount: $352,006

Actual closing costs, etc: $3672

Maximum loan amount: $355,678

Excess funds due to the actual payoff being lower than the estimated payoff or actual closing costs being lower than estimated closing costs must be applied as a principal curtailment, not to exceed $2000

Assets

No minimum bank account balance required

No minimum bank account balance required

Second Loan

Any amount (existing 2nd mortgage holder must agree to new first mortgage - a.k.a. subordination agreement)

Mortgage Insurance Options

Original loan does not have MI coverage, then no MI required for the new loan

Note: If original loan currently has MI, loan is not eligible for this program at this time.

Original loan does not have MI coverage, then no MI required for the new loan

Note: If original loan currently has MI, loan is not eligible for this program at this time.

Seasoning Requirements

3 Months

The Note Date of the Original Mortgage must be at least 3 months prior to the Note Date of the new mortgage

None

Mortgage History

No late mortgage payments in last 12 months

No late mortgage payments in last 12 months

Appraisal

Either original appraisal or new appraisal will be required as determined by underwriter

Condos, Cooperative units, 2-4 unit and leasehold properties must have a new appraisal

Condos and co-ops are not allowed if in a project that is ineligible, unless the reason for ineligibility is pre-sale or owner occupancy

If existing loan was a renovation, a new appraisal or final inspection will be required to confirm that the renovation is complete

When no appraisal is obtained, a signed affidavit is required from you indicating how long they have owned the property and that the property is currently not for sale

Condos and co-ops are not allowed if in a resort condominium or condotel project

Maximum Payment Increase

No maximum

When new principal and interest payment is more than 20% greater than the existing P&I payment made most frequently in the last 12 months, income documentation is required, loan score must be at least 620, and the DTI cannot exceed 45%.

Determined by underwriter

Ineligible Mortgages

Determined by underwriter

Determined by underwriter

Refinance Limit

You may refinance only one time under the program

You may refinance only one time under the program

Other Restrictions

Can not add a new borrower

Change in borrower are permitted due to death or divorce only

Policy for multiple financed properties does apply

Policy for loans seasoned less than 12-months or less than 6-months does not apply

Rent loss insurance is required on investment properties per standard guidelines

Rent loss insurance is not required on investment properties