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Freddie Mac Super Conforming Mortgage Insurers May Have Additional Restrictions Not Listed Within This Document

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Freddie Mac Super Conforming Mortgage Insurers May Have Additional Restrictions Not Listed Within This Document Freddie Mac Super Conforming Mortgage insurers may have additional restrictions not listed within this document. Please refer to each mortgage insurance company’s website for complete eligibility details. PRIMARY RESIDENCE – PURCHASE & RATE/TERM REFINANCE Maximum Maximum Underwriting Engine & Property Type Minimum Credit Score LTV CLTV/HCLTV 1 Required Response 1-Unit Warrantable 95% 95% Condo PUD LPA - Accept 620 2-Unit 85% 85% 3 to 4-Unit 2 80% 80% PRIMARY RESIDENCE – CASH-OUT REFINANCE Maximum Maximum Underwriting Engine & Property Type Minimum Credit Score LTV CLTV/HCLTV 1 Required Response 1-Unit Warrantable 80% 80% Condo PUD LPA - Accept 620 2 to 4-Unit 2 75% 75% SECOND HOME – PURCHASE & RATE/TERM REFINANCE Maximum Maximum Underwriting Engine & Property Type Minimum Credit Score LTV CLTV/HCLTV 1 Required Response 1-Unit Warrantable 90% 90% LPA - Accept 620 Condo PUD SECOND HOME – CASH-OUT REFINANCE Maximum Maximum Underwriting Engine & Property Type Minimum Credit Score LTV CLTV/HCLTV 1 Required Response 1-Unit Warrantable 75% 75% LPA - Accept 620 Condo PUD INVESTMENT PROPERTY – PURCHASE Maximum Maximum Underwriting Engine & Property Type Minimum Credit Score LTV CLTV/HCLTV 1 Required Response 1-Unit Warrantable Condo 85% 85% PUD LPA - Accept 620 2 to 4-Unit 2 75% 75% INVESTMENT PROPERTY – RATE/TERM REFINANCE Maximum Maximum Underwriting Engine & Property Type Minimum Credit Score LTV CLTV/HCLTV 1 Required Response 1-Unit Warrantable 85% 85% Condo PUD LPA - Accept 620 2 to 4-Unit 2 75% 75% V. Product Guidelines 1 of 7 Document #5347 Return to Top 12/11/2020 Freddie Mac Super Conforming INVESTMENT PROPERTY – CASH-OUT REFINANCE Maximum Maximum Underwriting Engine & Property Type Minimum Credit Score LTV CLTV/HCLTV 1 Required Response 1-Unit Warrantable 75% 75% Condo PUD LPA - Accept 620 2 to 4-Unit 2 70% 70% 1. Maximum CLTV refers to the maximum combined loan-to-value of drawn and outstanding liens secured by the subject property. Maximum HCLTV refers to the maximum potential combined loan-to-value of all liens using the full amount of the line of credit. All loans must meet the LTV, CLTV and HCLTV criteria. 2. 2-unit properties are subject to minimum and maximum loan amounts per the Loan Amounts section below and Exhibit A. PROGRAM SUMMARY This program is a fixed-rate, fully amortizing, conventional first lien mortgage loan program for properties located in certain high-cost areas as defined annually by the Federal Housing Finance Agency (FHFA). PRODUCTS OFFERED Product Name Term ARM Disclosure Freddie Mac Super Conforming 30-Year Fixed 30 years Freddie Mac Super Conforming 20-Year Fixed 20 years NA Freddie Mac Super Conforming 15-Year Fixed 15 years Freddie Mac Super Conforming 5/6 SOFR ARM 30 years Doc. #3383 or Equivalent Freddie Mac Super Conforming 7/6 SOFR ARM 30 years Doc. #3384 or Equivalent LOAN AMOUNTS Contiguous States and the District of Columbia No. of Units Minimum Loan Amount 3 Maximum Loan Amount 4 1 $548,251 $822,375 2 $702,001 $1,053,000 3 $848,501 $1,272,750 4 $1,054,501 $1,581,750 3. Loans below the minimum loan amount are eligible under standard Fannie Mae/Freddie Mac products. 4. The maximum loan amounts listed are the maximum amounts that may apply; the limit may be lower for a specific high-cost area. A complete list of the high-cost areas eligible for financing under this program is attached as Exhibit A. A complete list of the 2021 loan limits for the entire United States, both those eligible under this program and those eligible under standard Fannie Mae and/or Freddie Mac products, may be located on the FHFA website. V. Product Guidelines 2 of 7 Document #5347 Return to Top 12/11/2020 Freddie Mac Super Conforming ELIGIBLE PROPERTY TYPES • 1 to 4-unit properties • Freddie Mac-/Fannie Mae-warrantable condominiums • Planned unit developments (PUD) INELIGIBLE PROPERTY TYPES • Non-warrantable condominiums • Manufactured homes • Cooperative properties MINIMUM CREDIT SCORES • Refer to the eligibility grid on page one for minimum score requirements. For loans greater than 80% LTV, also refer to the mortgage insurer’s guidelines; their credit score requirements may be higher. • All scores must meet the credit score validation requirements outlined in the Conventional Underwriting Guidelines. QUALIFYING RATE Fixed Rate 5/6 ARMs 7/6 ARMs Note rate using a fully Greater of note rate plus 2% or fully- Greater of fully indexed or amortizing payment. indexed. Note rate. QUALIFYING RATIOS Determined by Loan Product Advisor (LPA) RESERVES Determined by LPA; for loans greater than 80% LTV, also refer to the mortgage insurer’s guidelines; their reserve requirements may be higher. SUBORDINATE FINANCING Refer to the Subordinate Financing section of the Conventional Underwriting Guidelines for details. INTERESTED PARTY CONTRIBUTIONS Interested party contributions include funds contributed by the property seller, builder, real estate agent/broker, mortgage lender, or any other party with an interest in the real estate transaction. Interested party contributions may be used exclusively to cover closing costs and prepaid expenses. INTERESTED PARTY CONTRIBUTION LIMITS CLTV Up to 75% 75.01-90% 90.01-95% Primary Residences Maximum 9% Maximum 6% 5 Maximum 3% Second Homes Maximum 9% Maximum 6% N/A Investment Property Maximum 2% Maximum 2% 5. For loans over 80% LTV, check the mortgage insurer’s guidelines; many have a lower interested party contribution limit. V. Product Guidelines 3 of 7 Document #5347 Return to Top 12/11/2020 Freddie Mac Super Conforming TEMPORARY BUYDOWNS Not eligible UNDERWRITING Items not covered below must meet the parameters as set out in Flagstar’s Conventional Underwriting Guidelines. • Loans must be submitted to LPA and receive an Accept response. • Loans that receive an invalid, ineligible, or incomplete risk evaluation status from LPA: the customer must make every possible effort to correct the information and resubmit the loan to LPA. • All loans must meet the qualifying ratio guidelines in the Qualifying Ratios section above. MORTGAGE INSURANCE Mortgage insurance providers may have additional restrictions not listed within this document. All loans above 80% LTV require mortgage insurance coverage according to the following guidelines: STANDARD MORTGAGE INSURANCE GUIDELINES LTV 30-Year Fixed 15 & 20-Year Fixed 90.01-95% 30% 25% 85.01-90% 25% 12% 80.01-85% 12% 6% NEW YORK PROPERTIES See Conventional Underwriting Guidelines. For Single Financed Mortgage Insurance (SFMI) and Lender Paid Mortgage Insurance (LPMI) eligibility see Single Financed Mortgage Insurance (SFMI) & Lender Paid Mortgage Insurance (LPMI) Matrix, Doc. #5010. STATE ELIGIBILITY Refer to Exhibit A for a complete list of eligible locations and loan amount limits. PREPAYMENT PENALTY None V. Product Guidelines 4 of 7 Document #5347 Return to Top 12/11/2020 Freddie Mac Super Conforming ADJUSTABLE RATE DETAILS Interest Rate 5/6: Initial – 2% up/down; subsequent – 1% up/down; lifetime – 5% up. Adjustment Caps 7/6: Initial – 5% up/down; subsequent – 1% up/down; lifetime – 5% up. Margin See Price Indication Sheet Index 30 Day SOFR (Secured Overnight Financing Rate) Interest Rate Floor The interest rate floor is equal to the margin 5/6: The first change date is the 60th payment due date. There is a new Change Date every 6 months thereafter. Change Dates 7/6: The first change date is the 84th payment due date. There is a new Change Date every 6 months thereafter. Conversion Option None Assumption Subject to conditions, fees and rate adjustment Negative Amortization None CLOSING DOCUMENTATION – CORRESPONDENT TRANSACTIONS Closing docs may be ordered through Flagstar’s Web Based Closing Docs (WBCD) service available in Loantrac. ALL LOANS: • Fannie Mae/Freddie Mac Uniform Security Instrument, 3000-series • Fannie Mae/Freddie Mac multi-state Fixed Rate Note, 3200-series • Standard title commitment with all applicable endorsements 5/6 & 7/6 SOFR ARMS • Fannie/Fannie multi-state Adjustable Rate Note, Form# 3442 • Fannie/Fannie multi-state Adjustable Rate Rider, Form# 3142 IF APPLICABLE: • Fannie Mae/Freddie Mac multi-state Condo Rider, Form# 3140 • Fannie Mae/Freddie Mac multi-state PUD Rider, Form# 3150 • Fannie Mae/Freddie Mac multi-state 1-4 Family Rider, Form# 3170, (for 2- to 4-unit primary residences and all investment property mortgages) • Fannie Mae/Freddie Mac multi-state Second Home Rider, Form# 3890 V. Product Guidelines 5 of 7 Document #5347 Return to Top 12/11/2020 Freddie Mac Super Conforming EXHIBIT A Counties where loan limits are set based on high-cost area provisions of HERA (areas where one-unit loan limit exceeds $548,250 in continental U.S. or is above $822,375 for locations in Alaska, Hawaii and U.S. Virgin Islands). Fannie Mae and Freddie Mac conforming loan limits for the high cost areas below may not exceed the corresponding levels listed. The 2021 conforming loan limit of $548,250 is in place everywhere else. State County Limit 1-Unit Limit 2-Unit Limit 3-Unit Limit 4-Unit CA Solano $550,850 $705,200 $852,400 $1,059,350 CA El Dorado, Placer, Sacramento, Yolo $598,000 $765,550 $925,350 $1,150,000 CA Santa Barbara $660,100 $845,050 $1,021,450 $1,269,450 CA San Luis Obispo $701,500 $898,050 $1,085,550 $1,349,050 CA Sonoma $707,250 $905,400 $1,094,450 $1,360,100 CA Monterey, Ventura $739,450 $946,650 $1,144,250 $1,422,050 CA San Diego $753,250 $964,300 $1,165,600 $1,448,600 CA Napa $816,500 $1,045,250 $1,263,500 $1,570,200 Alameda, Contra Costa, Los Angeles, Marin, CA Orange, San Benito, San Francisco, San Mateo, $822,375
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