Highlights:

Assist low and moderate income borrowers • LTVs up to 100% • No Down payment required • Low MI coverage requirements • Higher Qualifying Ratios • Non-traditional credit, assets & income are allowed • Special underwriting considerations for Teachers, Public Safety Workers, Military Personnel & Health Care Workers

• 40 year terms available • Interest Only option available • 2-1-0 Buydowns available • Builder Abatement Feature for new construction Loan Type: 30 & 40 Year Fixed Rate; 5/1; 7/1 and 10/1 ARMs Interest Only Option: Interest Only option is available on all loans except: • Loans with the builder abatement feature • Loans with a temporary buydown 30 Year Fixed with 10 Year Interest Only Period 35 Year Fixed with 5 Year Interest Only Period 40 Year Fixed with 10 Year Interest Only Period Term: 30, 35 or 40 years Minimum Loan Amt: $25,000 Max LTV/Loan Amt: Purchase & Rate/Term Refi Transactions Only (Cash Out Refis not permitted) MC 97 Max LTV/CLTV MC 100 Max LTV/CLTV Max Loan Amt Primary Residence 97/100** 100/100%** $417,000 Second Homes Not permitted Investment Property Not permitted **CLTV to 105% is permitted if the secondary financing is a FNMA approved Community Second mortgage. AUS: These loans can be manually underwritten or run through FNMA DU. 

The borrower may not own any other residential dwelling (except subject property for refinance transactions). This includes mobile homes. Credit Requirements: For loans that are not run through DU or do not receive an Approve/Eligible, EAI Eligible or EAII Eligible, the minimum credit score requirement is: • 600 for LTVs <= 97%

Use the lowest middle score of all borrowers. All manual underwrite MCM requirements will apply. Borrowers who do not meet the minimum credit score requirement or who have credit histories with insufficient information to create a credit score may still be eligible subject to the following:

• No Credit Score: If the borrower has no score due to no credit history with the repositories, an acceptable non-traditional credit report that contains all of the following will be acceptable:
Minimum of three sources of non-traditional credit with at least a 12 month history. One of the sources must represent housing (mortgage or rental) and one of the sources must be a utility company. The remaining source may be for anything as long as the repayment terms are in writing and the borrower can provided canceled checks or money order receipts that show the creditor as the payee. If the borrower has no housing history, a minimum of four credit sources is required. ?? There may be no history of rental housing delinquency within the past 24 months (or, since inception if less than 24 months) ?? Maximum of 1 x 30 on any other sources & only 1 account may reflect a 30 day late in the last 12 months ?? No collections or judgments (other than medical collections) filed in the past 24 months. All judgments must be satisfied. Collection accounts (including medical) in excess of $250 individual / $1,000 in aggregate must be paid in full; and ?? In the unlikely event a borrower (with no score) has a prior bankruptcy or foreclosure, he/she must have reestablished credit that satisfied the requirements listed above.

• Teachers, Public Safety Employees, Military Personnel & Health Care Workers will be considered acceptable if the borrower has all of the following: A 12 month rental history with no delinquency  No delinquencies in the past 12 months for other tradelines.

For borrowers qualifying as a teacher, public safety employee, military personnel or Employees, Military Per- health care worker, overtime and part-time income may be used to qualify the personnel & Health borrower if all of the following conditions are present: 1) Employer verifies that the Care Workers (Com- borrower has received income for the last 12 months; 2) Employer indicates in all community Solutions): probability the income will continue; 3) The income used to qualify will be an average of the most recent 12 months. Also see Credit Requirements, Ratios & Reserves for other features available to Teachers, Public Safety Employees, Military Personnel & Health Care Workers. Teacher – an employee of an accredited or state recognized private or public school; a certified teacher or administrator in an education agency or an employee of a postsecondary level educational institution. Public Safety Employee – an employee of a law enforcement agency or fire department administered by an agency or division of a state or local government; or a sworn law enforcement officer responsible for crime prevention and detection, law enforcement, or criminal incarceration; or a sworn member of a fire department involved in the fire suppression or prevention, emergency medical response, hazardous materials response, or management or response to terrorism. Military Personnel – a member of the U.S. Armed Forces who is on full-time active duty; a member of a reserve component of the U.S. Armed Forces or a former member of the U.S. Armed Forces or of a reserve component of the U.S. Armed Forces who has been honorably discharged and has been separated or retired from either active duty or a reserve component for no more than 2 years at the time of the mortgage loan application. Health Care Worker – a certified, accredited or licensed health care worker who is a medical resident or fellow; a nurse, nursing assistant, pharmacist, pharmacy technician, physician’s assistant, medical technician, technologist or therapist.


Prepayment Penalty: No