Fannie Mae High Balance Mortgage insurers may have additional restrictions not listed within this document. Please refer to each mortgage insurance company’s web site for complete eligibility details. PRIMARY RESIDENCE - PURCHASE AND RATE/TERM REFINANCE Maximum Minimum Underwriting Engine & Property Type Ma x imum LTV CLTV/HCLTV 1 Credit Score Required Response 1-Unit Warrantable Condo 95% 95% PUD 620 DU – Approve/Eligible 2 Unit 85% 85% 3 to 4-Unit 75% 75%
PRIMARY RESIDENCE – CASH-OUT REFINANCE Maximum Minimum Underwriting Engine & Property Type Ma x imum LTV CLTV/HCLTV 1 Credit Score Required Response 1-Unit Warrantable Condo 80% 80% PUD 620 DU – Approve/Eligible 2 to 4 Unit 75% 75%
SECOND HOME – PURCHASE AND RATE/TERM REFINANCE Maximum Minimum Underwriting Engine & Property Type Ma x imum LTV CLTV/HCLTV 1 Credit Score Required Response 1-Unit Warrantable 90% 90% 620 DU – Approve/Eligible Condo PUD
SECOND HOME – CASH-OUT REFINANCE Maximum Minimum Underwriting Engine & Property Type Ma x imum LTV CLTV/HCLTV 1 Credit Score Required Response 1-Unit Warrantable Condo 75% 75% 620 DU – Approve/Eligible PUD
INVESTMENT PROPERTY - PURCHASE Maximum Minimum Underwriting Engine & Property Type Ma x imum LTV CLTV/HCLTV 1 Credit Score Required Response 1-Unit Warrantable Condo 85% 85% PUD 620 DU – Approve/Eligible 2 to 4 Unit 75% 75%
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Fannie Mae High Balance
INVESTMENT PROPERTY – RATE/TERM REFINANCE Maximum Minimum Underwriting Engine & Property Type Ma x imum LTV CLTV/HCLTV 1 Credit Score Required Response 1 to 4-Unit Warrantable Condo 75% 75% 620 DU – Approve/Eligible PUD
INVESTMENT PROPERTY – CASH-OUT REFINANCE Maximum Minimum Underwriting Engine & Property Type Ma x imum LTV CLTV/HCLTV 1 Credit Score Required Response
1 Unit Warrantable 75% 75% Condo PUD 620 DU – Approve/Eligible
2 - 4 Unit 70% 70%
1. Maximum CLTV refers to the maximum combined loan-to-value of drawn and outstanding liens secured by the subject property. Maximum HELOC CLTV 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 HELOC CLTV criteria. 2. Maximum CLTV refers to the maximum combined loan-to-value of drawn and outstanding liens secured by the subject property. Maximum HELOC CLTV 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 HELOC CLTV criteria.
PROGRAM SUMMARY Fixed- and adjustable- rate and term, fully amortizing, conventional jumbo-conforming first lien mortgage loan program.
PRODUCTS OFFERED
Product Name Term ARM Disclosure Fannie Mae High Balance 30-Year Fixed 30 years Fannie Mae High Balance 25-Year Fixed 25 years Fannie Mae High Balance 20-Year Fixed 20 years NA Fannie Mae High Balance 15-Year Fixed 15 years Fannie Mae High Balance 10-Year Fixed 10 years Fannie Mae High Balance 5/6 SOFR ARM 30 years Doc. #3383 or Equivalent Fannie Mae High Balance 7/6 SOFR ARM 30 years Doc. #3384 or Equivalent
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Fannie Mae High Balance LOAN AMOUNTS
Contiguous States & District of Columbia No. of Minimum Loan Maximum Loan Units Amount 3 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 at the following Web address: http://www.fhfa.gov/DataTools/Downloads/Pages/Conforming-Loan-Limits.aspx
ELIGIBLE PROPERTY TYPES • 1 to 4-unit properties • Fannie Mae warrantable condominiums • Planned unit developments (PUD) • Modular homes
INELIGIBLE PROPERTY TYPES • Non-warrantable condominiums • Cooperative properties • Manufactured homes
MINIMUM CREDIT SCORES Refer to the Product Eligibility Grids above. Mortgage insurers may have additional restrictions. Refer to each specific mortgage insurance company’s website for complete eligibility details.
QUALIFYING RATE
Fixed Rate 5/6 ARMs 7/6 ARMs Note rate using a fully Greater of note rate plus 2% or Greater of fully amortizing payment. fully-indexed. indexed or note rate.
QUALIFYING RATIOS Determined by Desktop Underwriter (DU)
RESERVES Determined by DU
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Fannie Mae High Balance 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. CLTV Up to 75% 75.01-90% 90.01-95% Primary Residences Maximum 9% Maximum 6% Maximum 3% Second Homes Maximum 9% Maximum 6% Not Applicable Investment Property Maximum 2% Maximum 2% Not Applicable
TEMPORARY BUYDOWNS Not eligible
UNDERWRITING Items not covered below must meet the parameters as set out in Flagstar’s current Residential Underwriting Guidelines. • Income should be documented per DU • Assets should be documented per DU • Credit score is required for all borrowers. Nontraditional credit is not permitted • SFC 808 must be attached to all loans
MORTGAGE INSURANCE Mortgage insurance providers may have additional restrictions not listed within this document. Due to rapid changes within the industry, please refer to each mortgage insurance company's website for complete details.
All loans above 80% LTV require mortgage insurance coverage according to the following guidelines: STANDARD MORTGAGE INSURANCE GUIDELINES LTV 25 - 30-years & All ARMs 10, 15 & 20-years 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.
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Fannie Mae High Balance PREPAYMENT PENALTY None
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 • Standard title commitment with all applicable endorsements
FIXED RATE LOANS • Fannie Mae/Freddie Mac multi-state Fixed Rate Note, 3200-series
ADJUSTABLE RATE LOANS
5/6 & 7/6 ARM • Fannie/Freddie Multistate Adjustable Rate Note, Form #3442 • Fannie/Freddie Multistate 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 to 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
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Fannie Mae High Balance 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 $822,375 $1,053,000 $1,272,750 $1,581,750 Mateo, Santa Clara, Santa Cruz Adams, Arapahoe, Broomfield, Clear Creek, CO $596,850 $764,050 $923,600 $1,147,800 Denver, Douglas, Elbert, Gilpin, Jefferson, Park CO Lake $625,500 $800,775 $967,950 $1,202,925 CO San Miguel $649,750 $831,800 $1,005,450 $1,249,550 CO Boulder $654,350 $837,700 $1,012,550 $1,258,400 CO Routt $678,500 $868,600 $1,049,950 $1,304,850 CO Garfield, Pitkin $765,600 $980,325 $1,184,925 $1,472,550 CO Eagle $822,250 $1,052,650 $1,272,400 $1,581,300 CO Summit $822,375 $1,053,000 $1,272,750 $1,581,750 CT Fairfield $601,450 $769,950 $930,700 $1,156,650 DC District of Columbia $822,375 $1,053,000 $1,272,750 $1,581,750 FL Monroe $608,350 $778,800 $941,400 $1,169,900 ID Blaine, Camas, Lincoln $625,500 $800,775 $967,950 $1,202,925 ID Teton $822,375 $1,053,000 $1,272,750 $1,581,750 MA Essex, Middlesex, Norfolk, Plymouth, Suffolk $724,500 $927,500 $1,121,150 $1,393,300 MA Dukes, Nantucket $822,375 $1,053,000 $1,272,750 $1,581,750 Calvert, Charles, Frederick, Montgomery, MD $822,375 $1,053,000 $1,272,750 $1,581,750 Prince Georges NC Camden, Pasquotank, Perquimans $625,500 $800,775 $967,950 $1,202,925
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Fannie Mae High Balance
NH Rockingham, Strafford $724,500 $927,500 $1,121,150 $1,393,300 Bergen, Essex, Hudson, Hunterdon, NJ Middlesex, Monmouth, Morris, Ocean, Passaic, $822,375 $1,053,000 $1,272,750 $1,581,750 Somerset, Sussex, Union NY Dutchess, Orange $726,525 $930,300 $1,124,475 $1,397,400 Bronx, Kings, Nassau, New York, Putnam, NY Queens, Richmond, Rockland, Suffolk, $822,375 $1,053,000 $1,272,750 $1,581,750 Westchester PA Pike $822,375 $1,053,000 $1,272,750 $1,581,750 Cannon, Cheatham, Davidson, Dickson, TN Macon, Maury, Robertson, Rutherford, Smith, $586,500 $750,800 $907,550 $1,127,900 Sumner, Trousdale, Williamson, Wilson UT Salt Lake, Tooele $600,300 $768,500 $928,950 $1,154,450 UT Box Elder, Davis, Morgan, Weber $646,300 $827,400 $1,000,100 $1,242,900 UT Summit, Wasatch $817,650 $1,046,750 $1,265,250 $1,572,450 Arlington, Clarke, Culpepper, Fairfax, Fauquier, Loudoun, Madison, Prince William, Rappahannock, Spotsylvania, Stafford, VA $822,375 $1,053,000 $1,272,750 $1,581,750 Warren, Alexandria City, Fairfax City, Falls Church City, Fredericksburg City, Manassas City, Manassas Park City, WA King, Pierce, Snohomish $776,250 $993,750 $1,201,200 $1,492,800 WV Jefferson $822,375 $1,053,000 $1,272,750 $1,581,750 WY Teton $822,375 $1,053,000 $1,272,750 $1,581,750
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