FMC Product Overview
Presentation
Desktop Underwriter is a registered trademark of Fannie Mae. Loan Prospector is a registered trademark of Freddie Mac. This
presentation is a summary and is not complete. This information is for mortgage professionals only and should not be distributed to or
used by consumers or other third-parties. Information is accurate as of the date shown below and is subject to change without notice.
6/4/2015
Agenda
 Government Programs:
 FHA Programs – includes Jumbo, Streamline, 203(k), EEM
 VA Programs – includes VA IRRRL
 USDA Program
 Down Payment Assistance Programs:
 Access (CA) / FirstDown (AZ, CO, ID, NM, NV, OR, TX, UT)
 SAPPHIRE (CA)
 CalHFA Program – Retail/Builder Only (CA)
 Conventional Program and Other Programs
 HARP DU Refi Plus Program
 97% LTV Program - NEW
 HomeStyle Renovations Program - NEW
 Other Programs
 EB Programs - RT Jumbo Program - TC HELOC Program – FK Program
 FMC Niches and Value Added Advantages
FMC Product Offering, Niches and Overlays
GOVERNMENT PROGRAMS
FHA Programs:
FHA Conforming & High Balance Jumbo loans
FHA Streamline Refinance
FHA 203(k) Streamline Program
FHA EEM Program
VA Programs:
VA Conforming & High Balance Jumbo loans
VA IRRRL
USDA Program
FMC Product Offering, Niches and Overlays
FHA
FMC Product Offering, Niches and Overlays
FHA Program
Highlights
Program Highlights (Conforming & High Balance Jumbo Loans)…
 Reduced Annual Mortgage Insurance Premium by .50%
 Purchases to 96.5% LTV with as low as zero fico scores (07 Program Only – 620 for FG
Program)
 Down Payments as low as 3.5% (borrowers own funds, gift, approved DAP, grant)
 Rate & Term Refinances to 97.75% LTV
 Cash out to 85% LTV
 Gift funds can be used for Down Payment or Closing Costs
 Non-occupant co-borrower/co-signer permitted
 Manual UW with expanded qualifying ratios up to 50%; or follow acceptable DU approval
 No Reserves for 1-2 units with a DU approval
1 mo PITI required on 1 unit and 3 mos. PITI required on 3-4 Unit properties for
Manually Underwritten loans ONLY)
 Manufactured Homes allowed up to 96.50% LTV/CLTV, and up to 5 acres max
FMC Product Offering, Niches and Overlays
FHA Streamline
Highlights
1.
NO FICO SCORE REQUIRED – No Credit Qualify Streamlines Only (Program 07)
2.
NO CREDIT REPORT REQUIRED – No Credit Qualify Streamlines Only
3.
12-MONTH MORTGAGE RATING required on Subject Property Only
4.
NO APPRAISAL – NO AVM
5.
Reduced UFMIP/AMIP for FHA loans endorsed 5/31/2009 or prior - .01% / .55%
6.
Reduced AMIP for all other FHA loans by .50%
7.
WITH a new appraisal up to 97.75% LTV
• 90% for fico scores between 500-579
8.
Non Owner Occupied and 2nd Home properties allowed
9.
Manual UW Preferred for No Credit Qualify Streamlines Only
• DU approvals allowed on Full Credit Qualify Streamlines
10.
See separate training for more information
FMC Product Offering, Niches and Overlays
FHA Streamline
203(k) Highlights
1.
Streamline 203(k) loan allows a borrower to finance up to $35,000 into their
purchase/refinance to make improvements, repairs and/or renovate their property
2.
Available for purchases or rate/term refinances
3.
Eligible properties can be REO’s (including HUD REO’s), foreclosed properties, short
sold properties
4.
Minimum 580 credit score required (620 for Jumbo 203(k) loans)
5.
Initial disbursements paid approximately 10 business days after closing
6.
Use Program 07 Only…. (NOT AVAILABLE under the FG Program)
7.
Available in CA, NV, AZ, OR, WA (Other states on an as needed basis with prior approval)
8.
Certification required to originate this product
9.
See separate training for complete program details
FMC Product Offering, Niches and Overlays
FHA EEM Program
1.
The FHA EEM Program allows a borrower to finance 100% of the expense of a cost effective
“energy package, that is, the property improvements, to make the house energy efficient.
2.
Because the home is energy efficient, the occupant(s) will save on utility costs, and therefore,
be able to devote more income to the monthly mortgage payment
3.
Loan limits may be exceeded
4.
No additional re-qualifying – borrower doesn’t have to qualify for the additional money
5.
No additional down payment required
6.
Does not affect the DTI (Debt to Income Ratios)
7.
No appraisal of improvements is required
8.
No additional contract requirements
9.
GHS does ALL the paperwork
10. See separate training for complete program details
FMC Product Offering, Niches and Overlays
VA
FMC Product Offering, Niches and Overlays
VA Program Highlights
Program Highlights…
 NO DOWN PAYMENT
 100% up to $417,000 including VAFF (Higher for high cost areas)
 NO MINIMUM FICO SCORE REQUIRED (07 Program Only – 620 for FG Program)
 NO MONTHLY MORTGAGE INSURANCE PREMIUMS
 NO RESERVE REQUIREMENTS
 Conforming 1 unit only (Own no other real estate)
 100% gift funds allowed
 Ability to finance the funding fee (plus reduced funding fee depending on down
payment, and the exemptions for veterans receiving compensation)
 Manually UW loan ratios to allowed up to 46% with residual requirement and
comp factors
FMC Product Offering, Niches and Overlays
VA IRRRL
Highlights
1.
NO FICO SCORE REQUIRED (Program 07 – 620 for FG Program)
2.
NO CREDIT REPORT REQUIRED (Program 07)
3.
12-MONTH MORTGAGE RATING required on Subject Property Only
4.
No Mortgage lates in last 12 months
5.
NO Appraisal NO AVM required
6.
Primary Residence, 2nd Home, Investment Properties allowed
•
Two (2) Current Utility bills to confirm occupancy
FMC Product Offering, Niches and Overlays
USDA
FMC Product Offering, Niches and Overlays
USDA Program
Highlights
Program Highlights…
 Purchase of a home in a Rural Area
 Owner-occupied non-farm SFR and PUDs
 No acreage limitation
 100% LTV of the appraised value up to $417,000 max loan amount
 30-yr Fixed Rate mortgages
 Borrower must have very-low, or low-to-moderate income
 Must meet program income limits
 Guarantee Fee can be financed into the loan allowing up to 102% financing
 First Time Homebuyer
FMC Product Offering, Niches and Overlays
USDA Program
Highlights
Program Highlights…
 GUS approval required
 Manual UW must be approved by USDA directly
 Minimum 640 representative credit score from ALL borrowers required (620
for 07 Program Only)
 Low or No Down Payment and Closing Costs required
 No cash reserves required
 No minimum homebuyer contribution required
 Residual Income required
 See separate training for full program details
FMC Product Offering, Niches and Overlays
DOWN PAYMENT ASSISTANCE
PROGRAMS
Access (CA)
FirstDown (AZ, CO, ID, NM, NV, OR, TX, UT)
Sapphire
(CA)
CalHFA (CA) Retail/Builder Available now
CalHFA “Wholesale” coming July 1, 2015…
FMC Product Offering, Niches and Overlays
ACCESS &
FIRSTDOWN
FMC Product Offering, Niches and Overlays
Access / FirstDown
Highlights
FMC Product Offering, Niches and Overlays
Access / FirstDown
Eligibility
Topic
Description
Eligible Borrowers



Geographic
Restrictions
•
•
Eligible Programs
FHA 30 Year Fixed Rate Mortgage
Eligible Properties





Occupancy
Owner Occupied Primary Residences only
Purpose
Purchase Only
Income Limit
115% of HUD Area Median Income (AMI)
First Time Homebuyer
NO First-Time Home Buyer requirement
Sales Price Limit
NO Sales Price Limits
Follows standard FHA borrower eligibility requirements
MAY OWN OTHER PROPERTIES – must meet FHA requirements
NO Non-Occupant co-borrowers or co-signers
Access: California
FirstDown: Arizona, Colorado, Idaho, New Mexico, Nevada, Oregon,
Texas, Utah
Single Family Residences
PUD’s
FHA Approved Condos
2 Units – 640 minimum fico required
Manufactured Homes – 660 credit score required
FMC Product Offering, Niches and Overlays
Access / FirstDown 1st
Mortgage
Topic
Description
Term
30-Year Fixed
Max LTV
96.50%
Max CLTV
99.50% Access / FirstDown 1st & 2nd (Follow FHA guidelines)
Maximum
Loan Amount
Conforming: Up to $417,000
Jumbo: > $417,000 to $625,500 based on county where property is located
Down
Payment
Assistance
Access / FirstDown 2nd:
•
CAN be used to fulfill the borrower’s equity contribution required on FHA 1st
Mortgage
Minimum Fico
Score
NONE - Follow 4155 (580 or Zero to maximum financing)
Max DTI
<620 Fico: 43%; 620-659 Fico: 45%; 660+: 48.90% regardless of UW method
•
Manually Underwritten loans Only: Ratios stretched over 43% must meet
the new FHA manual UW debt ratio guidelines. See ML 2014-02
Reserves
NONE w/DU Approval (1 month PITI required on manually underwritten loans)
UW Guidelines
Follow standard FHA guidelines unless stated in Term Sheet or Training
FMC Product Offering, Niches and Overlays
Access / FirstDown 2nd
Mortgage
Topic
Description
Term
15-yrs Fixed-Rate Fully Amortizing
Maximum Loan Amount
Sized up to 3% of the lower of the Sales Price or Appraised Value
Interest Rate
8.25%
Max CLTV
99.50% Access / FirstDown 1st & 2nd (Follow FHA guidelines)
Use of Funds

Proceeds may be used for:
 DOWN PAYMENT
 CLOSING COSTS
 Price Adjustments
 Up Front or Single Premium MI

No cash back to the borrower from the 2nd loan proceeds
• Any overage over POCs must be used to reduce principal
balance
• Any overage over $500 results in redraw of loan documents
FMC Product Offering, Niches and Overlays
SAPPHIRE
FMC Product Offering, Niches and Overlays
SAPPHIRE
Highlights
What the Sapphire Program Offers…
 1st Mortgage Loans:
o FHA and VA available products
o Available throughout the State of California
o Interest Rate available at the Reservation Portal at https://nhfresportal.nhfloan.org
o The published rate is subject to change at any time
 Grant:
o May not exceed 3% or 5% of total 1st lien loan amount (including upfront MIP or VAFF)
o Proceeds can be used for:
 Down Payment
 Closing Costs
 Prepaid Items
 Earnest money
 MIP
o Not a 2nd lien; does not need to be calculated into the DTI/CLTV
o There must be no cash back to the borrower from the Grant Fund proceeds
FMC Product Offering, Niches and Overlays
SAPPHIRE
Eligibility
Borrower Eligibility:




Be a US Citizen, permanent resident alien, or qualified alien
Occupy the residence as their primary residence
Non-occupant co-borrowers/co-signers – NOT allowed
Borrower income cannot exceed NHF Income limits for the county in which the
property is located
 115% Area Median Income (AMI)
 Minimum Credit Score of 620
 Meet all required agency Guidelines (FHA/VA)
 FHA must meet HUD 4155 guidelines plus FMC overlays
 VA must meet VA Handbook plus FMC overlays
Property Eligibility:
 Eligible Properties
 1-2 Units, PUDs, FHA Approved Condos
 Ineligible Properties
 3-4 Units, Manufactured Homes, 2nd Homes, NOO, Co-Ops, Recreation
FMC Product Offering, Niches and Overlays
CalHFA
1.
2.
3.
4.
5.
6.
CalPLUS Conventional with ZIP
CalPLUS Conventional with ZIP EXTRA
CalPLUS FHA with ZIP
CalHFA Conventional
CalHFA FHA
CHDAP
FMC Product Offering, Niches and Overlays
CalPLUS Conventional
W/ZIP
(Zero Interest Program)

CalHFA Conventional first mortgage with DAP built in

Up to 97% LTV (Condo’s capped at 95% LTV)

Up to 105% CLTV

First Time Homebuyer or Non-First Time Homebuyer

MCM Guidelines. In DU…
 Select HFA Preferred in the Community Lender Product Field
 CalHFA Subordinate loans must be entered as Community 2nds

Reduced MI with Genworth (see next slide)
 Single Premium and Monthly Options

Up to $417,000 Maximum loan amount on first mortgage

ADMC .25%

NO LLPA

NO Minimum Borrower Contribution required

Can be combined with Fannie Mae Community 2nds or CHDAP
FMC Product Offering, Niches and Overlays
ZIP (Zero Interest Program)
w/CalPLUS Conventional

3% of the first mortgage loan amount

Total loan amount including Upfront MI if applicable

0.00% (Zero) Interest Rate

Payments are deferred over life of loan, until…



Refinanced
Transferred
Sold

Matches term of CalPLUS 1st Mortgage

Use for Down Payment Assistance ONLY

First Time Homebuyer or Non-First Time Homebuyer

Can be combined with Fannie Mae Community 2nds or CHDAP

Conventional Loans with 95.01 - 97% LTV Overlays:



680 min FICO
No condos allowed
Underwritten by Investor
FMC Product Offering, Niches and Overlays
ZIP (Zero Interest Program)
EXTRA
w/CalPLUS Conventional
 FIRST TIME HOMEBUYERS ONLY
 3% of the total 1st mortgage amount (ZIP)
$6,500
 3% ZIP can be used for Down Payment Assistance ONLY
 $6,500 can be used for Down Payment, Closing Costs, or Single
Premium MIP
 0.00% (Zero) Interest Rate
 Deferred Payments
 All other guidelines follows the regular ZIP
FMC Product Offering, Niches and Overlays
CalPLUS FHA W/ZIP
(Zero Interest Program)

CalHFA FHA insured first mortgage with DAP built in

Up to 96.50% LTV -

Lesser of $417,000 (excluding UFMIP) or FHA loan limit

Up to 105% Max CLTV
High balance loans allowed – See CalHFA rate sheet for additional fee

640 Minimum Fico Score

First Time Homebuyer or Non-First Time Homebuyer

Borrower contribution no longer required

Zero score borrower(s) allowed

Allowed ONLY if one of the occupant borrower’s has a fico score that meets the minimum
program required score

Manual Underwriting allowed

Manufactured Homes allowed with 660+ Fico Score

Can be combined with any FHA approved 2nds, CHDAP
FMC Product Offering, Niches and Overlays
ZIP (Zero Interest
Program)
w/CalPLUS FHA

3.5% of the first mortgage loan amount
 Total loan amount including Upfront MI

0.00% (Zero) Interest Rate

Payments are deferred over life of loan, until…
 Refinanced
 Transferred
 Sold

Matches term of CalPLUS 1st Mortgage

Use for Down Payment Assistance ONLY

First Time Homebuyer or Non-First Time Homebuyer

Manufactured Homes Allowed with 660+ Fico Score

Can be combined with FHA Approved Seconds, CHDAP
FMC Product Offering, Niches and Overlays
CalHFA
Conventional & FHA
CalHFA Conventional and CalHFA FHA
 Same as corresponding CalPLUS product
 With lower interest rate published daily
 Use when your borrower doesn’t need ZIP
 Can be combined with CHDAP
FMC Product Offering, Niches and Overlays
CHDAP
(California Homebuyers
Down-Payment Assistance
Program)

3% loan amount – Lower of Sales Price or Appraised Value

3.25% simple interest

Payments are deferred over life of loan, until refinanced, sold, transferred

First-Time Homebuyers Only

Up to 105% Max CLTV (103% Standalone; Non-CalHFA 1st)

Max 45.00% DTI (43% Standalone; Non-CalHFA 1st)

Manual UW allowed if combined with an FHA first mortgage (Can be CalHFA or
non-CalHFA first)

Manufactured Homes Allowed with a 660+ Fico Score

Can be in any Lien Position

Can be combined with any CalHFA or Non-CalHFA 1st mortgage, Fannie Mae
Community 2nd or FHA Approved 2nd
FMC Product Offering, Niches and Overlays
Upcoming CalHFA Programs
1. CalEEM + Grant Program
2. ECTP – Extra Credit Teachers Program
3. CalHFA MCC Program
FMC Product Offering, Niches and Overlays
CONVENTIONAL
Highlights of the Conventional Products
FMC Approved MI Companies:
*** Genworth: www.mortgageinsurance.genworth.com
*** MGIC: www.mgic.com
*** United Guaranty: www.ugcorp.com
Lender Paid MI Option
FMC Product Offering, Niches and Overlays
Conventional Program
Highlights
Topic
Description
Highlights
 5-20% minimum down payment required based on MI availability
 Minimum 620 fico score required
 Gift funds allowed
 Ratios up to 45% (DU with flex up to 50%) See MI matrix for max DTI
 Manufactured Homes available up to max - 90% LTV/CLTV - 2 acres max
• Check MI for eligibility
 Jumbo loan amounts available up to $625,500
 DU approval required
Manual Underwriting NOT ALLOWED!
FMC Product Offering, Niches and Overlays
Conventional Program
Highlights
Topic
Description
Minimum Fico
Score
 620 - Follow DU approval.
 Higher Fico Requirements on 5+ more financed properties
 See Announcement 09-02
Mortgage
Insurance
 MI available up to 95% for most states
 Check MI company guidelines for details
 See next page for highlights
Approved MI
Companies
 FMC Approved MI Companies – see next slide for highlights
 Genworth
 MGIC
 United Guaranty
Niche:
Borrowers with 5-10 financed properties

Allowed up to 75% LTV - Purchase/R&T Refinances

Minimum 720 fico score

Must meet minimum reserve requirement
FMC Product Offering, Niches and Overlays
OTHER PROGRAMS
 HARP DU RefiPlus
 97% LTV Program
 HomeStyle Renovations Program
 EB Jumbo - RT Jumbo - TC HELOC
FMC Product Offering, Niches and Overlays
FMC Product Offering, Niches and Overlays
Program Highlights
Highlights of the DU Refi Plus Program:

Borrower(s) must have an existing Fannie Mae loan, acquired before 6/1/2009,
with an acceptable payment history

Borrowers must benefit from the refinance with no more than $250 cash back

NO MAXIMUM LTV for FRM with terms up to 30 years

NO MINIMUM FICO SCORES – Doesn’t follow standard Fico requirements

NO MI - MI flexibilities, with no additional coverage required

1-4 Primary Residences, 1-4 Non-Owner Investments, 1-unit 2nd Homes

DU Approval required (Manual UW not allowed)

Price Adjustment caps - LLPA’s effectively eliminated for HARP loans with terms of
20 yrs or less; cap for other HARP loans is .75%; 2% for NOO..
FMC Product Offering, Niches and Overlays
FMC Product Offering, Niches and Overlays
Program Overview
 Non-MCM Program – Regular 97% LTV Standard
Program
 Purchase transactions if at least one borrower is a FirstTime Homebuyer
 Standard Limited Cash-Out Refinance Option for existing
Fannie Mae loans
 No Income Limits, No Counseling required
FMC Product Offering, Niches and Overlays
Eligibility Guidelines
PURCHASE
Eligible Borrowers
 Must be a First Time Home Buyers
• At least 1 borrower must be a FTHB
• FTHB is defined as someone who has not owned any
residential property in the last 3 years
Income Limits
 No Income Limit required
Minimum MI Coverage
 18% + MI Loan-Level Price Adjustment or 35%
Home-buyer Education  Not required
and Counseling
Minimum Borrower
Contribution
 Standard contribution requirements apply
Pricing
 Standard risk-based LLPAs
• Based on credit score and LTV range
FMC Product Offering, Niches and Overlays
Eligibility Guidelines
REFINANCE (Limited
Cash-Out)
Existing Loan
 Loan must be owned (or securitized) by Fannie Mae
• Documentation may come from the current servicer,
Fannie Mae’s loan lookup tool, or any other eligible
source
Minimum MI Coverage
 18% + MI Loan-Level Price Adjustment or 35%
All other guidelines
 Follow standard limited cash-out refinance guidelines
Pricing
 Standard risk-based LLPAs
• Based on credit score and LTV range
FMC Product Offering, Niches and Overlays
FMC Product Offering, Niches and Overlays
Program Overview
 HomeStyle Renovation is a single-close loan that enables borrowers
to purchase a home that may need repairs, or refinance the
mortgage on their existing home, and include the necessary funds
for the renovation into the loan balance
 The loan amount is based on the “as-completed” value of the home,
rather than the present value
 The Fannie Mae HomeStyle Renovations Program allows lenders to
combine a traditional first mortgage with the funds necessary for
renovating, repairing, or improving a home in a single-close loan
 Available via Retail / Builder Only!
• State Restrictions: AZ, CA, NM, NV, TX, UT
 Wholesale via the Special Products Division Only!
FMC Product Offering, Niches and Overlays
ELIGIBILITY
GUIDELINES
Eligible Borrowers
 Individual home buyers or homeowners
Eligible Properties /  Primary Residence:
Occupancy Type
• 1-4 Unit SFRs, PUDs, Fannie approved Condos
 2nd Homes:
• 1 Unit
 Investor Properties:
• 1 Unit
• Manufactured Homes - INELIGIBLE
Repair Amount
 Up to 50% of the As-Completed Value
• Up to 10% for Borrower Do-It-Yourself work
FMC Product Offering, Niches and Overlays
ELIGIBLE REPAIRS
FMC Product Offering, Niches and Overlays
FMC Product Offering, Niches and Overlays
Program Guidelines
Topic
Description
Program Types
 Conforming ARM Programs
 Jumbo Programs
Jumbo Loan
Amounts
 Fixed Rate Loan Minimum - $417,001
 Fully Amortizing ARM Loan Minimum - $250,000
 Maximum - Up to $3 Million (See EB Jumbo matrix)
 Loan amounts > $1,500,000 require Loan Committee Approval
 FMC: Over $1 Million – requires FMC Corporate approval
Occupancy Type
 Primary Residence Only
 Second Homes
 Investment Properties
Loan Purpose




Purchase Transactions
Technical Refinances
Rate & Term Refinances
Cash Out
FMC Product Offering, Niches and Overlays
CONFORMING
Program Matrix
FMC Product Offering, Niches and Overlays
JUMBO
Program Matrix
FMC Product Offering, Niches and Overlays
FMC Product Offering, Niches and Overlays
CONFORMING
Program Guidelines
Topic
Description
UW Method
 LP (Loan Prospector) with “Accept” Recommendation ONLY!!!
o Streamlined Accept and Standard Documentation
acceptable
 Caution risk class is NOT allowed
o A-Minus Offering is NOT allowed
 Manual Underwrite is NOT allowed
Minimum Fico
Score
 640 Minimum FICO score
DTI
 50% - regardless of AUS decision
 Blended Ratios allowed
FMC Product Offering, Niches and Overlays
Conforming
Program Matrix
FMC Product Offering, Niches and Overlays
JUMBO
Program Guidelines
Topic
Description
Program Types
 Fixed: Rate Mortgage: 10-Year to 30-Year Fixed ONLY
 ARMS: NOT AVAILABLE
Loan Amounts
 See Matrix
LTV / CLTV
 See Matrix
Occupancy Type
 Primary Residence for 1-2 unit properties Only
 Second Home for 1 unit properties Only
 Investment Properties – NOT ALLOWED
FMC Product Offering, Niches and Overlays
Jumbo Program
Matrix
FMC Product Offering, Niches and Overlays
FMC Product Offering, Niches and Overlays
Program Overview

HELOC 2nd – combined with our Conventional 1st (Agency Conventional
Conforming, Conventional High Balance, or Jumbo program)

2nd available in a form of a HELOC
•
•

Assist jumbo loans by reducing the 1st to conforming loan amounts or available
jumbo 1st
Eliminate MI
HELOC 2nd can be up to $350,000

Recommend to take full line to 89.99%; cannot change post close

Brokered loan – we close the first, investor closes 2nd concurrently

Available via our FMC Retail / Builder divisions only

NOT AVAILABLE IN NEVADA!!!
FMC Product Offering, Niches and Overlays
HELOC 2nd
Matrix
HELOC (30-YR Rates)
(Purchase/Refinance of 1-2 Family Primary SFR, Condo, PUDs)
Combined 1st &
2nd Mortgage
Exposure
CLTV
Minimum FICO
Prime +
$750,000
89.99%
700
1.99%
$750,000
80.00%
700
1.49%
$1,275,000
85.00%
720
1.99%
$1,275,000
80.00%
720
1.49%
Current Prime – 3.25%
FMC Product Offering, Niches and Overlays
FMC Product Offering, Niches and Overlays
Non-Agency JUMBO
Program Overview
 Fixed Rate – 30 Yr
 Loan Amounts up to $2.5 Million
 LTV’s up to 80%
 FICO scores as low as 700
 DTI’s up to 43% max
 Delayed financing (within 6-months of cash acquisition)
 Payoff of 12 month seasoned subordinate liens considered
rate/term
FMC Product Offering, Niches and Overlays
Non-Agency JUMBO
Matrix
FMC Product Offering, Niches and Overlays
Non-Agency EXPANDED
Program Overview
 Eligible Borrowers
• US Citizens, Permanent Resident Alien
• Non-Permanent Resident Alien
 Foreign Nationals
• Loan amounts to $1MIL up to 60% LTV, and $1.5MIL up to 55% LTV
• Second Homes
• B-1, B-2, H-1, I, J-1, J-2, O-2, P-1, P-2 VISAs
• ITIN or SSN
 Credit Standards
• FICO minimums as low as 640
• BK/FC/SS – None in the past 4 years
 Debt-to-Income Ratios
• Maximum increased to 50%
• > 43% DTI
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Additional Reserves Required
Minimum residual income levels
FMC Product Offering, Niches and Overlays
Non-Agency EXPANDED
Program Overview
Topic
Description
 May be used as qualifying income
Asset Depletion
 Monthly qualifying income:
Qualifying asset value divided by loan term
LTV reduction
 Maximum LTV reduced by 10% if subject property is vacant
LTV restriction
 LTV may be restricted depending on cash flow
Impounds
 Required regardless of LTV
Non Warrantable
Condos
 OK
FMC Product Offering, Niches and Overlays
Non-Agency EXPANDED
Matrix
FMC Product Offering, Niches and Overlays
Investor EXPRESS
Program Overview
 30 year fixed rate mortgage
 Unlimited number of financed properties (Investor will finance up to 10)
 Purchase or Refinances – no limit on cash out
 Property DTI based solely on subject property cash flow.
• 65% to 90% maximum Property DTI
 Credit Scores as low as 620
 Bankruptcy/Foreclosure: None in last 36 months
 Foreign nationals with ITINs allowed
 Non-warrantable Condos
 Maximum LTV reduced by 10% if subject property is vacant
 LTV may be restricted depending on property cash flow.
 Impounds required regardless of LTV
FMC Product Offering, Niches and Overlays
Investor EXPRESS
Matrix
FMC Product Offering, Niches and Overlays
Non-Warrantable Condos
Program Overview
Loans secured by properties located in condominium projects that are not warrantable to
Fannie Mae under specific, expanded project criteria are eligible.
 Non-Warrantable condominiums must meet the Expanded Criteria and all Standard Fannie
Mae Criteria referenced below…
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FMC Product Offering, Niches and Overlays
MISCELLANEOUS
FMC Overlays
Expired Loan Programs
FMC Value Added advantages
FMC Product Offering, Niches and Overlays
FMC Overlays
Dated: 11/1/2014
FMC Product Offering, Niches and Overlays
FMC Overlays
Overview
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Ineligible Products
Eligible Products
Appraisal Requirements
4506T Requirements
Overlays for Manual underwrites
Insufficient Credit Borrower requirements
Overlays for FHA Manufactured Homes
Overlays for VA Loans
Overlays for VA Manufactured Homes
Overlays for Jumbo VA loans
Overlays for Disputed Accounts
Overlays for Authorized Users
Overlays for Age restricted communities
Overlays for MCC program
FMC Product Offering, Niches and Overlays
FMC Value Added
Advantages
 FICO SCORES:
• We offer true ZERO FICO on FHA and VA loans
• Must comply with their respective guidelines plus FMC Overlays
• 500 Fico’s also allowed as long as our overlays and FHA guidelines are met
 CERTS:
• Septic Certs – good for 6 months
• Termite & Clearance – good for 90 days
 CONVENTIONAL LOANS:
• We can loan on up to 10 financed properties through FNMA
 MANUFACTURED HOMES:
• FHA to 96.50% LTV w/ 660+ fico (up to 99.50% with Access/FirstDown w/ 660+ fico)
• VA to 100% LTV
• Conventional to 95% LTV
 4506-T:
• 4506-T for full tax transcripts required on SELECTED BORROWERS ONLY
• We only require 4506 W-2 validation in most cases
• Do not get more than you need
FMC Product Offering, Niches and Overlays
FMC Product
Support…
FMC WEB SITE
 Rate Sheets
 Matrices
 FMC Overlays
 Training
Schedule/Materials
 Guidelines
 Forms
 Marketing
 Tools
 Calculators
TRAININGS
First Mortgage offers FREE Weekly
ONLINE Trainings
See the FMC website for the June 2015
Training schedule
Trainings for June 2015:
 6/4 – FMC Product Overview
 6/9 – CalHFA “Product” Training
SUPPORT TEAM
RETAIL: Contact your FMC
Loan Help Team
Wholesale Brokers /
Correspondent Lenders:
Contact your FMC Account
Executive
For help with:
 6/11 – CalHFA “Income” Training
 6/16 – CalHFA “Processing” Training
 6/18 – FMC “TRID” Training
FMC Product Offering, Niches and Overlays
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Guidelines
Program questions
Scenarios
Pricing / Fees
Loan Submissions
Trainings
On behalf of First Mortgage, thank you for joining
today’s training and we hope the information
provided will help you build your business!
The main purpose of First Mortgage Corporation’s (FMC) training documents is to assist real estate and mortgage
professionals in developing entry-level competence with loan programs.
While FMC staff, employees, contractors and contributors take care to ensure the accuracy of the content of training
documents, FMC makes no warranties as to the accuracy of the information contained within these materials.
Furthermore, every user of this material uses it understanding that he or she must still conduct his or her own original
legal research, analysis and drafting. In addition, every user must refer to the relevant legislation, case law,
administrative guidelines, rules and other primary sources.
FMC specifically disclaims any liability for any loss or damage any user may suffer as a result of information
contained within this training material.
While the information contained in FMC’s training material addresses guidelines and issues surrounding mortgage
programs, these materials do not constitute legal advice. All non-legal professionals are urged to seek legal advice
from a lawyer.
FMC Product Offering, Niches and Overlays