"Smart Jumbo Interest-Only" Program

BORROWERS

Only Borrowers with a Valid Social Security Number

Mazimum Borrowers: no more than 4 Borrowers per Loan

Maximum Loans: Maximum of 10 Loans per Borrowers

ELIGIBILITY

AUS Feedback: 

Only through DU

DU Approve Ineligible Feedback

The only reason allowed for Ineligible feedback is the Loan Amount

A-Caution, Incomplete, Invalid or Out of Scope are not allowed

No Manual Underwriting

Mortgage Credit Certificated: Not Permitted

Rate and Term Refinance:

In addition to purposes permitted by FNMA guidelines, proceeds from a rate and term refinance may be used to pay off subordinated mortgage liens that have been seasoned for at least one year. The seasoning requirement for a junior lien that is a HELOC will be applied to the date of the most recent draw against the equity line unless the draws were less than $2,000 and provided that the total draws have not exceeded a total of $2,000 in the last twelve months.

DTI; Cannot exceed 43%

Extenuating Circumstances: Using Extenuating Circumstances to reduce waiting period requirements is not allowed (for FC, BK, DIL, Pre-foreclosure/Short Sale)

Mortgage History: No late payments are allowed for any mortgage in the 12 months prior to laon closing unless during a Covid-19 Forebearnce

Social Security Income: Tax Returns or 1099S Canot be used as standalone documentation. Award Letter or Proof of Current Receipt is Required

Alimony/Child Support Income: Evidence of 6 months receipt required

VOE: A VOE is not acceptable as standalone documentation, unless order by unterwriter. A Paystub or the Equivalent is otherwise required

Assets as Income: Assets as income is Not Allowed on this product type

RSU Income/Stock Options: 

Stock must be publicly traded, vesting provisions must be documented (e.g. RSU agreement, offer letter), and must document the vesting schedule(s) currently in effect detailing past and future vesting. RSU must have vested and been distributed to the borrower without restriction. Must be likely to continue for at least three years.

If RSU vesting is time based, a one-year history of receipt must be documented.

If RSU vesting is performance based, a consecutive two-year history of receipt must be documented.

PROPERTY

Ineligible Properties: Co-ops, Leasehold Properties, Manufactured Homes, Agricultural Properties, Log Homes

Refinance of Listed Properties: Must Remove Listing Prior to Clear to Close

HPML: HPML Loans are not permitted for Jumbo Released

Appraisal: 

Appraisal Waivers are not acceptable. All files must have a full appraisal.

Refinance transactions with loans amounts of $2 million and above require a second appraisal and must be completed by a different appraiser. Appraised value will be the lower of the two appraisals.

 Guideline Overlay

A secondary valuation is required on all loans. This valuation cannot be more than 10% less than the appraisal.

Acceptable options include:

An acceptable CU/LCA score (completed by FMNI)

A collateral desktop analysis (CDA, that must come from a disinterested third party only)

A field review

A second full appraisal

Home Owner Insurance:

Investor guidelines require the dwelling coverage to cover the replacement cost, if the replacement cost is less than the loan amount. If the replacement cost is more than the loan amount, the dwelling coverage must cover the greater of 80% of the replacement cost or the loan amount. Guaranteed replacement cost is acceptable. 100% replacement cost is not acceptable.

Escrow Holdbacks: Not Permitted

ASSETS

Reserves: Reserve requirements are based on specific parameters of the loan

SMART JUMBO PRODUCT OFFERINGS

FIXED-RATE LOAN PRODUCTS

FMNI offers a suite of six fixed-rate jumbo products featuring competitive pricing along with transparent investor guidelines and loan qualifications that allow us to tailor a fixed jumbo loan to  borrower’s situation. These custom options aren’t offered at most big banks or retail lenders, so we’ll make more satisfied more jumbo borrowers!

JUMBO 30-YEAR FIXED - A Program

700+ FICO

Up to 43% DTI and up to 80% CLTV

DU only

Loan amounts starting $1 over the greater of the conforming loan limit or High Agency Cost limit up to $3M

Eligible on primary and second home purchases, rate/term and cash-out refinances

For Purchase and Rate/Term Refinances

For primary purchase loan amounts up to $3M – 9-18 months’ reserves required

For second home purchase loan amounts up to $2.5M – 12 months’ reserves required

For Cash-Out Refinances

Minimum 12 months’ reserves required (max cash out $300,000 or $500,000 with 10% CLTV reduction)

Two separate appraisals from two different appraisers required for loan amounts over $2M

Temporary Rate Buydowns not permitted

JUMBO 30-YEAR FIXED- B Program

660+ FICO

Up to 49.99% DTI and up to 80% CLTV

DU only

Loan amounts starting at $400,00 up to $3M

Eligible on primary, second and investment property purchases, rate/term and cash-out refinances

For Purchase and Rate/Term Refinances

For primary purchase loan amounts up to $3M – 6-12 months’ reserves required

For second home purchase loan amounts up to $3M – 9-12 months’ reserves required

For investment home purchase loan amounts up to $1.5M – 12 months’ reserves required

For Cash-Out Refinances

For primary cash-out loan amounts up to $2M – 6-12 months’ reserves required

For second home cash-out loan amounts up to $2M – 9-12 months’ reserves required

For investment home cash-out loan amounts up to $1.5M – 12 months’ reserves required

Two separate appraisals from two different appraisers required for loan amounts over $1.5M

Temporary Rate Buydowns eligible on primary and second home purchases

JUMBO 30-YEAR FIXED – Program C

680+ FICO

Up to 45% DTI and up to 80% CLTV

Loan amounts starting $1 over the conforming loan limits up to $2.5M

Eligible on primary and second home purchases, rate/term and cash-out refinances

For Purchase and Rate/Term Refinances

For primary purchase loan amounts up to $2M – 6-9 months’ reserves required

For primary purchase loan amounts over $2M – 24 months’ reserves required

For second home purchase loan amounts up to $2M – 6-9 months’ reserves required

For Cash-Out Refinances

For primary cash-out loan amounts up to $2M – 6-9 months reserves required

For second home cash-out loan amounts up to $1M – 6 months reserves required

Two separate appraisals from two different appraisers required for loan amounts over $2M

Temporary Rate Buydowns not permitted

JUMBO 30-YEAR FIXED – Program D

680+ FICO

Up to 45% DTI and up to 89.99% LTV

Loan amounts starting $1 over the conforming loan limits up to $3M

Eligible on primary, second and investment property purchases, rate/term and cash-out refinances

Loan amounts up to $2M reserves determined by DU/LPA findings

Loan amounts over $2M — require 6 months in reserves in addition to any reserves required by AUS

Two separate appraisals from two different appraisers required for loans over $2M

Borrower solicitation protection because FMNI services these loans exclusively

Temporary Rate Buydowns eligible on primary and second home purchases

JUMBO 30-YEAR FIXED – Program E

680+ FICO

Up to 50% DTI and up to 90% LTV

Loan amounts starting at $400,000 up to $3.5M

Loan amounts up to $2M — reserves determined by DU/LPA findings

Loan amounts between $2M - $3M — require 6 months in reserves in addition to any reserves required by AUS

Loan amounts over $3M — require 12 months reserves in addition to any reserves required by AUS

Eligible on primary, second and investment property purchases, rate/term and cash-out refinances

Two separate appraisals from two different appraisers required for loan amounts over $2M

Temporary Rate Buydowns eligible on primary and second home purchases

JUMBO 15-YEAR FIXED – Program F

700+ FICO

Up to 45% DTI and up to 80% LTV

Loan amounts starting at $600,000 up to $3M

Reserves determined by DU/LPA findings

Eligible on primary home purchases, rate/term and cash-out refinances

Temporary Rate Buydowns not permitted

ADDITIONAL JUMBO LOAN PRODUCTS

In addition to our fixed-rate jumbo products, FMNI also provides adjustable rate and interest-only options — all to help us compete and win these high-value borrowers.

PRIME JUMBO ARMS (5-, 7- AND 10-YEAR)

Loan amounts up to $3M

680+ FICO and up to 45% DTI

Up to 80% LTV

Eligible on primary, second and investment properties for purchases, rate/term and cash-out refinances

One appraisal required for purchases up to $3M and refinances up to $2M*

Two appraisals from two different appraisers required for refinances over $2M*

Loan amounts greater than $2M require 18 months of reserves in addition to any reserves required by AUS

PRIME JUMBO INTEREST ONLY (30-YEAR FIXED)

Loan amounts up to $3M

700+ FICO and up to 43% DTI

Up to 80% LTV

10-year interest only, 20-year amortization period

Eligible for primary and second homes for purchases and rate/term refinances

One appraisal required for purchases up to $3M and refinances up to $2M*

Two appraisals from two different appraisers required for refinances over $2M*

Loan amounts up to $1M require 12 months of reserves in addition to any reserves required by AUS

Loan amounts over $1M require 24 months of reserves in addition to any reserves required by AUS

PRIME JUMBO MAX ARMS (7- AND 10-YEAR FIXED)

Loan amounts up to $3M

700+ FICO and up to 43% DTI

Up to 80% LTV

Eligible for primary and second homes for purchases, rate/term and cash-out refinances

One appraisal required for loans up to $1.5M*

Two appraisals from two different appraisers required for loans over $1.5M*

For purchase and rate/term refinances

For primary purchase loans up to $3M—6-18 months of reserves required

For second home purchase loans up to $3M —12-18 months of reserves required

For cash-out refinances

For primary cash-out loans up to $1.5M—12 months of reserves required (up to $250,000 cash back)

For primary cash-out loans between $1.5M-$2M —15 months of reserves required (up to $500,000 cash back)

For second home cash-out loans up to $1.5M—12-18 months of reserves required (up to $250,000 cash back)

For second home cash out loans between up to $1.5M-$2M—18 months of reserves required (up to $500,000 cash back)

*Appraisal waivers are not applicable on Prime Jumbo, Prime Jumbo Released, Prime Jumbo ARMs, Prime Jumbo Interest Only, Prime Jumbo Max and Prime Jumbo Max ARMs.

Information subject to change. Certain restrictions apply. Subject to borrower approval.