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Stated Income (yeah, that's right) to 90% LTV

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Fixed and ARM's available - 5, 7 and 10 years ARM's available

Eligible Borrower types:

• U.S. citizen
• Permanent resident alien
• Non-permanent resident alien
• First-time homebuyer

Ineligible Borrower type:
• Foreign national
• Non-occupant co-borrower

Title Vesting
• Individuals.
• Joint Tenants.
• Tenants in Common

Ownership
Ownership must be fee simple only and must be in the name of the individual Borrower(s).
Leasehold Estates
Leaseholds are not acceptable.

Transaction Types

Eligible Transaction Types:
• Purchase:
• Cash Out and Rate/term refinance:

- The pay-off of the outstanding principal balance of an existing first Mortgage Loan.

- The pay-off of the outstanding principal balance of any existing subordinate Mortgage Loan that was

used in whole to acquire the subject property or has been more than one year.

- The financing of closing costs (including prepaid expenses).

- Cash back to the borrower in an amount no greater than the lesser of two percent (2%) of the balance

of the new refinance Mortgage Loan or $2,000.

- Appraised Value is based on current appraisal or purchase value whichever less.

• Cash-Out refinance (Primary residence only)

- A Mortgage Loan that may include the unpaid principal balance of the existing first Mortgage

Loan, closing costs, points, the amount to satisfy any outstanding subordinate mortgage liens of

any age, and additional cash that the borrower may use for any purpose.

- Refinance Mortgage Loans that involve the refinance of subordinate liens that were not used in whole

to purchase the subject property are considered Cash-out Refinance. This includes home

improvement loans, HELOC and second Mortgage Loans obtained for taking Equity out of the

property, even if a portion of the subordinate lien was used to purchase the property..

- Appraised Value is based on current appraisal value.

Ineligible transaction types:
• Non-Arms Length Transactions

• Interest Only available

Will not purchase a loan representing a rate/term refinance or a cash-out refinance, if the subject
property is currently listed for sale or has been listed for sale within 90 days of loan application regardless of
occupancy. The appraiser should fully disclose the recent listing and the underwriter may require further

Occupancy

Eligible occupancy types:
• Primary residence
• Second/vacation home

Ineligible occupancy types:
• Non-owner occupied

Property Types

Eligible property types:
• Single family, 1-4 unit (attached or detached)
• PUD
• Condominium unit
• Co-op

Note:

Co-ops permitted in NY only: Counties of: Nassau, Rockland, Suffolk and Westchester

Boroughs of: Brooklyn, Queens, Manhattan, Bronx, and Staten Island.

Condos, attached PUDs, and Co-ops must meet Chase criteria. Refer to Condo Matrices located On-line Guides.

2-4 family property requires 1-4 Family Ride

Credit

• All Credit Documents must be dated no more than 60 days.

• Broker Supplied Credit Report must be dated no more than 30 days.

• Residential Mortgage Credit Report (RMCR) or tri-merged report is required.

• A minimum of two FICO scores must be obtained for each applicant to determine each applicant’s

representative FICO score. If two FICO scores are obtained, the applicant’s representative FICO score

is the lower score. If three FICO scores are obtained, the applicant’s representative FICO score is the

middle score. If there is more than one applicant, the score from the applicant with the lowest

representative FICO is used.

• The borrower’s established credit history needs to consist of a minimum of 4 trade lines (installment,

revolving accounts, mortgages, etc.), one of which has been open a minimum of 24 months, the other 3

must be rated for at least 12 months.

• Bankruptcy must be discharged a minimum of seven (7) years from the application date.

• Foreclosure must be discharged a minimum of seven (7) years from the application date.

• No other derogatory since the discharge or completion of the bankruptcy or the completion of the

foreclosure related action.

• Any open liens or judgments must be paid off at closing.

Mortgage/Rental History

Verification or documentation supporting the mortgage and/or rental payment history for past 24 months is

required. If it is not verified on the credit report, verification from the mortgage servicer, landlord, or borrower is

required. The mortgage and/or rental history may not show any payments greater than 1 x 30 in the last 24

months.

Debt-to-Income Ratio

Fixed Rate: 38%

ARM: 40%

Income

If income is documented in loan file, the loan is no longer eligible for a stated income or no income program.

Employment History

• The borrower must have a 2-year work history. If they do not have a work history covering a full 2 years,

the loan must be processed using the Modified/Standard process.

• Self-Employed: The business must have been in existence for at least 2 years (as stated on the

application). If the business has not been in existence for a full 2 years, the loan must be processed

using the Modified/Standard process.

• Gaps in employment are not permitted.

Salaried Borrowers

- Stable 2-Year income history is required.

- Includes commission income totaling less than 25% of annual income.

- Income Verification: None required.

- W-2s/ Tax Returns: None Required.

- Income stated on the application must be supported by assets reflecting a minimum balance of the

lesser of 50% of the borrower’s annual income or $100,000.

- Assets to support income may come from any combination of liquid assets— checking/savings,

retirement, etc.

- Although income documents are not required the application must state the specific source of income.

Stated income may be used to calculate debt ratios provided all other factors in the file (e.g., assets,

credit information, etc.) appear reasonable and are consistent with the amount being financed.

Employment Verification: Documented telephone verification of the employment with the employer no

more than 30 calendar days prior to loan closing.

- Length of Employment: The borrower must have a 2-year employment history listed on the

application.

- IRS Form 8821/4506 is required. It must be signed at closing by all borrowers and it must cover the

past 2 years.

SELF-EMPLOYED BORROWERS

- Income Verification: None required.

- Although income documents are not required the application must state the specific source of income.

Stated income may be used to calculate debt ratios provided all other factors in the file (e.g., assets,

credit information, etc.) appear reasonable and are consistent with the amount being financed.

- Income stated on the application must be supported by assets reflecting a minimum balance of the

lesser of 50% of the borrower’s annual income or $100,000.

- Assets to support income may come from any combination of liquid assets— checking/ savings,

retirement, etc.

Employment Verification: Documented verification that the business is open and operating no more

than 30 calendar days prior to loan closing.

- Length of Employment: The business must have been in existence for at least 2 years.

- IRS Form 8821/4506 is required. It must be signed at closing by all borrowers and it must cover the

past 2 years for both the individual and the business.

OTHER INCOME SOURCES

- Other income may be considered, however, it cannot be the borrower’s primary source of income used

to qualify.

- Source/length of time received does not have to be verified. Although income documents are not

required the application just state the specific source of income. Stated income may be used to

calculate debt ratios provided all other factors in the file (e.g., assets, credit information, etc.) appear

reasonable and are consistent with the amount being financed

Verification

- IRS Form 8821/4506 is required. It must be signed at closing by all borrowers and it must cover the

past 2 years.

- Assets to support income.

Down Payment & Cash to Close

• Gift Funds/Proceeds from the Sale of Home: Must not be used to support income.

• Large Deposits: An explanation is required if cumulative deposits are greater than one month’s gross

qualifying income. Explanation must be reasonable and consistent with the borrower’s credit and income

profile.

Asset Verification (all LTVs):

• Minimum balance of the lesser of 50% of the borrower’s annual income or $100,000. Whichever is

utilized, it must cover minimum 6 months PITI.

• Assets must be liquid - checking/savings, retirement, etc.

• All pages of the 3 most recent consecutive months’ bank statement(s) or VOD with three month’s

average balance and/or other documents needed to verify assets to close and reserves

Reserve Requirements

6-months verified PITI.

Reserves are required for all transactions – purchase, rate/term, and cash-out refinances.

Sales Concessions

Occupancy LTV Maximum Contribution

Primary Residence <= 75% 9%

Primary Residence 75.01% to 90% 6%

Primary Residence > 90% 3%

Second Home <=75% 9%

Second Home 75.01% to 90% 6%

Secondary Financing

Outside Institutional Lender seconds eligible

Temporary Buydown

Not permitted

Escrow Waivers

The LTV must be 80% or less (unless state law dictates escrows are not required for mortgage loans with an

LTV > 80%).

Multiple Property Ownership

For first mortgages, if the subject property is a second home or investment property, the borrower may not

have more than ten(10) residential properties financed. Joint ownership in residential real estate is considered

the same as total ownership of an individual property and therefore is subject to the same restriction. This

restriction does not include loans on commercial real estate or multifamily dwellings with more than four units).

Mortgage Insurance

LTV reflected is for MI purposes only. Refer to the appropriate LTV matrix for the maximum LTV that applies to

the occupancy and process selected.

Occupancy LTV Property <= 20 years > 20 years

Primary Residence

or

Second Home

90.01 <= 95% 1-2 Unit & Co-ops 30% 30%

85.01 <= 90% 1-2 Unit & Co-ops 12% 25%

80.01 <= 85% 1-2 Unit & Co-ops 6% 12%

Reduced or Lower cost MI features are not available.

Appraisal

Qualified Appraiser Requirements

The Seller must perform quality control reviews of the appraisers on its approved list, removing appraisers

from the list as necessary.

The appraiser must:

• Be approved by Seller in connection with Mortgage Loans originated for its own account.

• Be a state licensed or certified appraiser.

• Be experienced in the appraisal of properties similar to the type being appraised.

• Be currently engaged in appraisal work.

• Subscribe to a code of ethics that is at least as strict as the code of the American Institute of the Real

Estate Appraisers or the Society of Real Estate Appraisers.

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reference #5062708472

all loan products are subject to change at any time
other restrictions may apply