The FNMA Flex 97TM is a 3% down payment program underwritten
using FNMA’s Desktop Underwriter automated underwriting
system for borrowers with strong credit. Allows for flexible sources of
funds necessary to finance the down payment and/or closing costs.
Fixed rate, fully amortizing mortgage loan.

LOCK AVAILABLE: Refer to daily rate sheet

ELIGIBLE PROPERTY TYPES:

Single family (detached and attached)
FNMA-approved Condominiums
Planned Unit Developments (PUDs)
Manufactured homes

ELIGIBLE OCCUPANCY: Primary residence only

MINIMUM LOAN AMOUNT: $20,000

PURCHASE TRANSACTIONS ONLY

INCOME LIMITATIONS: None

PRE-PURCHASE HOME BUYER COUNSELING: Not required

SOURCE OF FUNDS:

• Gifts, grants or unsecured loans from family, employer or non-
profit organization or government entity
• Borrower’s own funds, including loans secured by assets owned by
borrower
• An approved Community Second loan program (refer to the
SECONDARY FINANCING section below for guidelines)
• Seller contributions* toward closing costs and prepaid items (may
not fund any part of the down payment)
• Lender premium pricing* may be used toward closing costs and
prepaid items (may not fund any part of the down payment)
* Up to a total of 3% of the lesser of sales price or appraised value

QUALIFYING RATIOS: Guideline - 33%/41% or higher (depending on response from DU)
RESERVES: Guideline - Two(2) months PITI

TEMPORARY BUY DOWNS: Not allowed

SECONDARY FINANCING: Community Seconds: Financing secured by a secondary lien
against the subject property is allowed from a public agency or
non-profit organization. All secondary financing programs
MUST be reviewed and approved by Mortgage Online at 425.com   Mortgage. Customer
shall submit a description of the secondary financing program, any
other written descriptive material available about the program, and the
loan documents used in connection with the financing to customer’s
Mortgage Online at 425.com   Mortgage account executive. Secondary financing program
review generally requires at least fourteen(14) days for approval.
Maximum combined loan-to-value with secondary financing is
105% IF the loan documents contain a "hardship clause"
which allows for the forgiveness of the debt if the borrower
experiences a catastrophic event (e.g. death, divorce, extended
illness) that results in the borrower selling the property. If this
hardship clause is not present, the maximum CLTV is 100%.

GENERAL UNDERWRITING GUIDELINES:
All loans will be underwritten using the FNMA Desktop Underwriter automated
underwriting system to FNMA and Mortgage Online at 425.com   Mortgage current applicable guidelines,
unless otherwise stated.
1. Borrowers must have "strong credit". Generally, borrowers with
less than a 660 credit score will not be approvable.
2. "Family" (for purposes of receiving gift funds or unsecured
loans) is defined as a blood or legal relative and is limited to
parents, grandparents, siblings, spouses, children,
grandchildren, aunts, uncles, first cousins, parents-in-law or
legal guardians. Engaged persons are not considered as
relatives.
5. A credit union is not considered a non-profit organization for
the purpose of this program.
6. Unsecured or secured loan payments must be included in
monthly obligations for calculating total debt ratio.
7. Borrowers must not own any other properties.

MORTGAGE INSURANCE: