Conventional Matrix Conforming Balance to 4 Financed Properties (See 5 to 0 Financed Properties on Page 5) Summary Product Types 30-year Fixed; 5-year Fixed For Conforming Loan Amounts, view State/County limits: https://www.fanniemae.com/singlefamily/loan-limits Conforming Balance Primary Residence 95% 95% 2 3-4 90% 90% Purchase -4 Fannie Portfolio Program Nations Direct Mortgage, LLC. Page of 7
Fannie Portfolio Program High Balance to 4 Financed Properties (See 5 to 0 Financed Properties on Page 5) Summary Product Types 30-year Fixed; 5-year Fixed For High Balance Loan Amounts, view State/County limits: https://www.fanniemae.com/singlefamily/loan-limits Primary Residence Loan Purpose High Balance Minimum FICO Units Max LTV Max CLTV 90% 95% 60% 60% 65% 90% -4 65% 65% Fannie Portfolio Program Nations Direct Mortgage, LLC. Page 2 of 7
Additional Requirements and Eligibility Allowable with DU Approve/Eligible AUS Bankruptcy Credit Report Delayed Financing Exception 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) Hand written paystubs or W2s acceptable 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 3 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 $0 or 5% of the balance on credit. Delayed Financing Exceptions are prohibited. Fannie Portfolio Program Nations Direct Mortgage, LLC. Page 3 of 7
**SEE NDM CONVENTIONAL GUIDELINES FOR DETAILED REQUIREMENTS** Last Updated: March 3 th, 204 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. Foreclosure / Deed in Lieu / Short Sale / Restructured Loans Deed-in-Lieu of Foreclosure/**Short Sale requires the following: 2-year waiting period with a maximum 80% LTV or program maximum, whichever is less. 4-year waiting period with a maximum 90% LTV or program maximum, whichever is less. 7-year waiting period, the maximum LTV allowed per program guidelines. 2-year waiting period with a maximum 90% LTV or program maximum, whichever is less, when the deed-in-lieu of foreclosure/short sale was due to documented extenuating circumstances. 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 $K in aggregate. 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. Fannie Portfolio Program Nations Direct Mortgage, LLC. Page 4 of 7
Fannie Portfolio 5+ Program Conforming & High Balance, 5 0 Maximum Financed Properties Summary Product Types 30-year Fixed; 5-year Fixed For Conforming Loan Amounts, see the State/County limits at https://entp.hud.gov/idapp/html/hicostlook.cfm. Conforming Balance 720 720 720 High Balance Loan Purpose Loan Purpose Minimum FICO Units Max LTV Max CLTV 720 65% 65% Minimum FICO Units Max LTV Max CLTV 720-4 65% 65% Fannie Portfolio Program Nations Direct Mortgage, LLC. Page 5 of 7
Additional Requirements and Eligibility Allowable with DU Approve/Eligible Bankruptcy or Foreclosure Credit Report Credit follows DU on Approve/Eligible No max debt ratios Up to 0 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 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 $0 or 5% of the balance on credit. Fannie Portfolio Program Nations Direct Mortgage, LLC. Page 6 of 7
Deed in Lieu / Short Sale / Restructured Loans Deed-in-Lieu foreclosure requires the following: 2-year waiting period with a maximum 80% LTV or program maximum, whichever is less. 4-year waiting period with a maximum 90% LTV or program maximum, whichever is less. 7-year waiting period, the maximum LTV allowed per program guidelines. 2-year waiting period with a maximum 90% LTV or program maximum, whichever is less, when the deed-in-lieu of foreclosure was due to documented extenuating circumstances. Short Sale, including a pre-foreclosure event Credit implications are in the FICO 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 $K in aggregate. 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. Mortgage Rating No delinquencies (30 days or greater) on any mortgage loans. Reserves 6 months PITI for each property owned 4506-T All loans require a 4506-T executed and returns validated. Properties Located in Texas Primary Residences ( Homestead Properties ): Purchases and rate-term refinances only. Cash-out refinance transactions not allowed. s and Investment Properties: Eligible for purchases, rate term refinances, and cash out refinances. Fannie Portfolio Program Nations Direct Mortgage, LLC. Page 7 of 7