TERM: Fifteen, twenty and thirty year

SUMMARY: FHLMC 15, 20 & 30 Year, Fixed Rate, Fully Amortizing Purchase Money Mortgages
for low- and moderate-income home buyers.


LOAN AMOUNT: MAXIMUM: Maximum conforming single family loan limit
MINIMUM: $20,000

ELIGIBLE PROPERTIES: 1 Unit Primary Residences including:
Single family dwellings, condos and PUDs
(For rehabilitated properties, rehabilitation must be completed prior to closing.)

LTV LIMITATIONS: PURCHASES ONLY:
Single Family Owner Occupied 97%

TEMPORARY BUY DOWNS: Not Allowed

GENERAL UNDERWRITING GUIDELINES:
All loans will be underwritten to FHLMC and Mortgage Online at 425.com   Mortgage’s current applicable guidelines, unless otherwise stated. A Gold Measure worksheet must be completed by the underwriter for each loan that does not utilize Loan Prospector.
1. Credit scores are required on all borrowers.
2. Borrower’s total income may not exceed 100% of the area median income published by HUD. Exceptions in higher cost areas include 120% for California and the Boston MSA; 165% for the New York City MSA; and 170% for the Hawaii.
3. All sources of stable monthly income may be used to qualify borrowers. Secondary income that is verified for one (1) year may be included as long as continuation of this income is probable.
4. Single family, primary residence only. Units in approved condominiums and PUDs are eligible.
5. The maximum LTV 97%. Subordinate financing is not allowed.
6. Ratios are calculated based upon total monthly debt. There is no monthly housing debt ratio to calculate.
To qualify, this ratio cannot exceed 38-40%. Justification for a debt ratio higher than 38% includes the
borrower's history of timely debt payments at the higher debt payment ratio and the borrower's 12 month
mortgage history of timely housing payments at the same amount of the new mortgage payment.
7. One month PITI cash reserves are required.
8. Borrowers are required to pay, from their own funds, at least a 3% down payment. Closing costs and prepaids may be paid in the form of a gift from a relative, a grant from a non-profit community organization, a government agency or an employer-assisted housing program, an unsecured loan, seller’s concessions and/or lender financing.
a. Gifts from a relative, and grants from a non-profit organization, public agency or employer-assisted housing program may be used in any amount.
b. An unsecured loan must be a term loan (minimum term of 5 years) with a fixed interest rate, no
negative amortization, level payments and can come from a non-profit group, governmental agency, or
an employer-assisted program. The term should not exceed that on the first mortgage and the rate should not exceed the rate on the first mortgage. If the unsecured loan is from the borrower's employer, the loan cannot be due and payable, and the borrower must retain the right to continue making payments, in the event the borrower no longer works for the employer. The total unsecured loan applied to the closing costs and/or prepaids must not exceed 2% of the lesser of sales price or appraised value. The monthly payment for the loan must be considered as debt in the debt-to-income ratio when qualifying the borrower. The borrower may not use credit card financing or loans from overdraft protection from a checking account to fund the payment of closing costs or prepaids. A credit union is not considered a non-profit organization for the purpose of this program.
c. Lender contribution from premium pricing may not exceed 2% of the lesser of sales price or appraised value.
d. Seller's concessions may not exceed 3% for all loans with an LTV greater than 90%, or up to 6% when the LTV is less than or equal to 90%.
9. Each borrower whose income was used for qualification purposes shall participate in one of the following pre-purchase borrower education programs prior to the closing on the mortgage financing:
a. GE's Community Home Buyer's Program, classroom version
b. GE's Community Home Buyer's Program, "Home Study Guide: Affording a Home in Today's Market"
c. MGIC's "The MGIC Home Buyer Program," video and workbook; or the MGIC purchase program titled "Homeward Bound."
d. RMIC's "The Pre-Home Ownership Education Course"
e. CMAC’s "Direct Approach" (If CMAC is used for home buyer education, then MI must be through CMAC also, and vice versa.)
f. United Guaranty's "The Road to Home Ownership"
g. FNMA's "A Guide to Home Ownership"
h. PMI’s "A Guide to Home Ownership" (If PMI does counseling, then mortgage insurance must be through PMI also. However, they will do MI if someone else does counseling.)
i. Other programs developed or adopted by the Lender must be Submitted to Freddie Mac for review
prior to implementation with Affordable Gold.

PROPERTY INSPECTIONS: A property inspection is recommended for all Affordable Gold mortgages.

MORTGAGE INSURANCE: Required mortgage insurance coverage as follows:

15-yr: 20 & 30-yr:
Fixed Rate Coverage 25% 35%