FHA Loan Program - Quick Reference Guide - Bankers Xpress

1 FHA loan Program - Quick Reference GuideEligible Products LTV / CLTV Matrices FHA TraditionalUnitsBase LTVCLTV 15, 20, 25 and 30 year Fixed Rate1 - 15 year products are limited to conforming loan balances1 - 5/1 fully amortizing Hybrid ARM with 1/1/5 caps1 - 485%85%1 - FHA Select1 - 4100%125% 25 and 30 year Fixed Rate 1. In some cases (subordinate financing provided by a family member, private individuals, other organizations/ 5 year ARM non-government agencies, a borrower >60 years of age, etc.) subordinate financing may be as high as 100% Features Subordinate financing provided by a government entity may exceed 100% CLTV by the "cost to acquire the Credit scores as low as 560 on Select product property".

2 All products are Fully-Amortizing 2. Maximum LTV / CLTV is 80% if Conforming Select or 75% if High Balance Select. HUD REOs with repair escrows allowed 3. Non-Credit Qualifying Streamlines: New base loan amount may not excced the original base loan amount. Low down payment requirements 4. LTV / CLTV for Streamline Refinance without appraisal is based on the original loan amount. Manual Underwriting allowed 5. Maximum 110% LTV / CLTV for HUD REO with escrow repair transactions. Gift funds allowed for down payment and closing costs 6. Maximum 100% LTV / CLTV for HUD REO $100 Down Payment Program transactions.

3 No temporary buydowns 7. ARMS not allowed for second homes or investment Limits Minimum Credit ScoresThe maximum base loan amount (excluding UFMIP) cannot exceed the FHAS tatutory Mortgage Limits for the applicable country. * 580 * 600 if High Balance * 5801 * 600 if High Balance234 * Conforming Balance: * 580 if LTV > 75% to < 80% * High Balance: * 600 if LTV < 75%For business and professional use only. Not for consumer distribution. This document is not an advertisement as defined in 12 CFR (a) (2).

4 All products are subject to credit and property approval. Other restrictions and limitations may apply. CRMLA # 4131288, NMLS#1078756, Bankers Xpress , LLC. Subject to change without rights reserved. Equal Housing Lender. UnitsConforming Balance (Maximum)High Balance(Minimum to Maximum)Borrowers without a Credit ScoreNot Eligible * Assume 580 for pricing620620 OccupancyPurposePrimary ResidenceStreamline with AppraisalAllStreamline without AppraisalPurchaseRate / TermCash-Out$417,001 to FHA County Limit$533,851 to FHA County Limit$645,301 to FHA County Limit$801,951 to FHA County Limit417,000$ 533,850$ 645,300$ 801,950$ 620 TraditionalFeaturePurchase and Rate / Term RefinanceStreamlineCash Out RefinanceSelect1, 5, 6 5, 6 2 2 3 3.

5 4 4 7 Program Overlays and Conventional ComparisonThis table highlights Bankers Xpress , LLC restrictions and overlays. Exceptions to these guidelines may be considered only with strong documented compensating factors. Note: This is summary information only.*Title may not be taken in the name of a Trust.*Credit score must meet the minimum requirements per the matrix above. TOTAL Scorecard Approve/Eligible loans with 620 credit score: 55% (If manual downgrade required, following Manual Underwritten requirements below.)*55%*If manual downgrade required, follow Manual Underwriting requirements below Refer/Eligible or Manually Underwritten or Approve/Eligible with scores <620:*Reminder: Manual underwriting is required when credit score is <620 and DTI is >43% or when manual downgrade is required per / 49%unless a lower DTI is required as defined below.

6 *45% maximum total DTI allowed when any of the following apply: * Payment shock exceeds 50% of current housing payment. * Credit score is less than 620 and gift funds and/or Down Payment Assistance financing is used for down payment down payment or closing costs. * High balance loan amounts.*43% maximum total DTI allowed when any of the following apply: * Borrower does not have a minimum of 6 months housing payments or rental history within the last 12 months*40% maximum housing ratio allowed at the underwriter s discretion when the borrower s only debt is the subject property monthly housing expense*When non-traditional credit is used to supplement an insufficient number of tradelines: Ratios may not exceed 31% / 43% and must be computedonly on those borrowers occupying the property.

7 Ratio increases based on compensating factors are allowed.*Note: Second level underwriting review required when ratios exceed 33/45%*If there is a large increase in the borrower s account or if the account was recently opened, the borrower must provide a credible explanation anddocumentation to source large deposits for all transactions. A large deposit is considered the lesser of: * A deposit that resulted in an increase greater than 25% of the borrower s gross monthly income; or * A deposit that is more than 2% of the sales price.*Select loans with credit score <620 require verification of mortgage/rental history regardless of TOTAL Scorecard requirements.

8 This does not applyto borrowers who are currently living rent free provided the rent free status is documented. Effective with case numbers assigned on or after October 15, 2013:*Judgments must be paid in full prior to loan approval, with the exception of court ordered judgments with payment arrangements in which threemonths scheduled payments were made prior to loan approval. Effective with case numbers assigned before October 15, 2013:*Court ordered judgements must be paid off if on title.*Judgments not on title may remain open if the borrower has a repayment plan in place with a minimum of two payments made prior to the contract business and professional use only.

9 Not for consumer distribution. This document is not an advertisement as defined in 12 CFR (a) (2). All products are subject to credit and property approval. Other restrictions and limitations may apply. CRMLA # 4131288, NMLS#1078756, Bankers Xpress , LLC. Subject to change without rights reserved. Equal Housing Lender. Mortgage / Rental HistoryJudgementsOverlay TypeBorrowerCreditMaximum Debt-to-Income Ratio (DTI)AssetsFHA Product Overlays - Apply to All Products Unless Stated Otherwise BelowOverlay Guidelines* Eligible for Rate/Term Refinance and Streamlines if listing was expired or cancelled prior to application date.

10 * Eligible for Cash-Out Refinance if listing was expired or cancelled >90 days prior to application date.* No manufactured homes - not applicable on PUF to PUF Streamline.* No Escrow Holdbacks, with the exception of HUD REO properties with HUD approved repair escrows.* Minimum $500 escrow repair account.* Signed 4506-T required on all loans except Non-Credit Qualifying Streamline Refinance transactions.* The 4506-T must be executed if tax returns are used to calculate income.* Income reported on the transcript must support the income entered in the AUS system.* Any major discrepancies between the income verified in the file and tax transcripts must be reasonable and supported by documentation in the file.