Requirements

Findings Parameters for Self-Help Desktop Underwriter loans

Approve/Eligible only

Must be run through Desktop Underwriter as My Community Mortgage

Acceptable ratios: 38/41%

Eligibility and Underwriting Criteria

Manual Underwrite or Desktop Underwriter (Approve Eligible only)

Loan Purpose

Purchase or Limited Cash-Out refinance

Term

30-year fixed rate

Loan Amount

No min/Fannie Mae max

Max LTV

Single Family: 100%

Condos: 90% limited review; 100% full on Condo Project Manager

Max CLTV

103%

Income Limits
(Use Fannie Mae Geocoder to income qualify borrowers: www.efanniemae.com)

Borrower’s income may not exceed 80% of Area Median Income of 115% if a) property is in a low/moderate income census tract, or b) property is in a minority census tract

Qualifying Ratios

Capped at 38/41%

Borrower Reserves

2 months PITI (source of funds can be gift)

Down Payment

$500 minimum borrower contribution on 100% LTV or 97% LTV loans. 3% down payment can be gift funds.

Credit History

Minimum credit score 620. Non-traditional credit is not allowed.

Occupancy

Owner occupied only. Purchase money or limited cash-out refinance. Non-occupant co-borrowers not permitted. Borrower may not own any other residential property at time of closing.

Property Type

Single Family dwellings only. Fannie Mae eligible condos and PUDs permitted, with the exception of condos with leaseholds. Manufactured housing NOT permitted.

Condominium requirements

Maximum LTV of 100% for condos that are approved through a Full Review, per Fannie Mae Guide. Maximum LTV of 90% for condos approved through a Limited Review, per Fannie Mae Guide. Fannie Mae’s Condo Project Manager system to be used for project approval. Condo Project Manager approval is 100%.

Declining Markets Policy

Maximum LTV/CLTV per Fannie Mae Guide

Seller Contributions

Maximum of 3%

Counseling

Pre-purchase homeowner Counseling not required, but is encouraged.

Subordinate Financing

Community Seconds allowed. Must meet Fannie Mae requirements per Guide. Maximum CLTV of 103%

Temporary Buydowns

2-1 Buydowns allowed. Borrower must qualify at note rate.

MI Coverage

No mortgage insurance required. Ignore MI message in DU.

Assumable

No

Limited Cash-Out Refinance Option

“Limited Cash-Out Refinance” transaction allowed, as per Fannie Mae Guide. Streamline refinance and loans originated under “Disaster Impacted Properties” policy are ineligible.