Product Overlay Matrix - SWMC.com - Sun West Mortgage Company ...

Product Overlay MatrixSun West Mortgage CompanySUN WEST IS ON THE RISE. COAST TO COAST. ACROSS THE NATION.Aug 3, 2012Version 3.7Full Service Mortgage Bankers, offering a diverse range of home loan programs backedby FHA, VA, USDA, Fannie Mae and Freddie Mac.This information is provided to licensed Mortgage Loan Originating Entities only and may not be copied or distributed tocustomers or potential customers. All loans are subject to approval. Certain restrictions may apply. Program rates, prices,guidelines, fees, costs, terms and conditions are subject to change without notice.Sun West Mortgage Company, Inc. (NMLS ID 3277) is licensed by the Department of Corporations as a California FinanceLender (License #603 0119) and is licensed by the Department of Real Estate (License #00793885). Refer to www.swmc.comto see where SWMC is a licensed lender. In all states, the principal licensed office of Sun West Mortgage Company, Inc. is18303, Gridley Road in Cerritos, CA90703; Phone: (800) 453‐7884

Table of ContentsEXPRESSEXPRESS FHA LOAN PROGRAMS .....................................................................................................................1EXPRESS STANDARD FHA LOAN PROGRAMS ‐ XP11S01F00 (FIXED), XP11S00F00 (ARM)............................................................. 1EXPRESS FHA MANUFACTURED HOUSING ‐ XP12S01F00 ........................................................................................................... 2EXPRESS FHA 203(K) ‐ XP11S00O00...................................................................................................................................... 3EXPRESS FHA PROPERTY FLIP WAIVER ‐ XP11O00F00.................................................................................................................. 5EXPRESS USDA LOAN PROGRAMS...................................................................................................................6EXPRESS USDA FIXED RATE PRODUCT ‐ XP61S00F00 ................................................................................................................ 6PRIMEPRIME FHA LOAN PROGRAMS ........................................................................................................................7PRIME STANDARD FHA LOAN PROGRAMS ‐ SO11S01F00 (FIXED), SM11S00F00 (ARM) ................................................................ 7PRIME FHA MANUFACTURED HOUSING ‐ AA12S01F00 .............................................................................................................. 9PRIME FHA JUMBO ‐ SO41S00F00........................................................................................................................................11PRIME FHA STREAMLINE REFINANCE .......................................................................................................................................13PRIME FHA 203(K) ‐ AA11S00O00 & FHA 203(K) JUMBO ‐ SM32S00F00..............................................................................15PRIME FHA PROPERTY FLIP WAIVER ‐ SO11O00F00 ................................................................................................................18PRIME VA LOAN PROGRAMS ........................................................................................................................20PRIME STANDARD VA LOAN PROGRAM ‐ SO15S00O00 / VA FLIP WAIVER FIXED ‐ SO15O00O00.................................................20PRIME VA IRRRL WITHOUT APPRAISAL ‐ AA15S00F00 .............................................................................................................22PRIME VA (JUMBO) LOAN PROGRAM ‐ SO32S00F00................................................................................................................23PRIME VA MEGA JUMBO LOAN PROGRAM ‐ SO32O00O00.......................................................................................................25PRIME USDA LOAN PROGRAM......................................................................................................................26PRIME USDA FIXED RATE PRODUCT ‐ SD61S00F00..................................................................................................................26Sun West Mortgage reserves the right to revise the locked price on loans which do not meet theattached guidelines. Please contact your account representative at (800) 453‐7884 if you wouldlike to request an exception to the attached guidelines.All transactions are subjected to compliance with regulatory, agency, automated underwritinglending requirements and acceptance at SWMC’s discretion.Sun West Mortgage will not accept credit supplements to document any debt in dispute or toremove derogatory credit information from the credit report. A new credit report would berequired.

EXPRESS FHA LOAN PROGRAMSEXPRESS Standard FHA Loan Programs - XP11S01F00 (Fixed), XP11S00F00 (ARM)Loan Purpose • Purchase• Rate & Term Refinance• Streamline RefinanceAmortization Term • Fixed Rate: 15 Years and 30 Years• Adjustable Rate: 3/1 and 5/1OccupancyOwner-occupied properties onlyEligible Properties • Attached / Detached SFRs• PUDs• HUD-approved Condos• 2-4 UnitsAutomatedUnderwritingMinimum CreditScoreDU Approve/Eligible or LP Accept/Eligible only. Manual underwriting is not acceptable except onnon-credit qualifying Streamline Refinances.630580 for Streamline RefinanceIf bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or public records,then the minimum FICO required is 680Maximum DTI Ratios 45%/55%LTV / CLTVLoan Purpose LTV CLTVPurchase 96.5% 100% 1Rate & Term Refinance 97.75% 97.75% 2Streamline Refinance 97.75% 3 125% 4•1 CLTV allowed is 105% for purchases, if using a Govt. Down Payment Assistance Program.•2 CLTV allowed for R/T refinances is 115% for loans qualifying under HUD ML 10-23 with FICOmore than 720.•3 Maximum loan amount for FHA Streamline Refinance without Appraisals cannot exceed theoutstanding principal balance, minus applicable refund of the UFMIP, plus the new UFMIP thatwill be charged on the refinance.4• LTV/CLTV for FHA Streamline Refinance without Appraisals use the original appraised value.The maximum accessible credit limits must be used when considering HELOCs (FHA Policy4155.1 3.C.2).Maximum LoanAmount• 1 Unit: Lesser of $417,000 or maximum county limit• 2 Units: Lesser of $533,850 or maximum county limit• 3 Units: Lesser of $645,300 or maximum county limit• 4 Units: Lesser of $801,950 or maximum county limitClick Here for County limitsNon-occupying CoborrowerSubordinateFinancingFlip WaiverDown PaymentAssistance (DPA)AllowedAllowedSun West offers Property Flip Waiver as a separate product. Please Click Here to view FHAProperty Flip Waiver guidelines.Allowed in conjunction with first mortgage loans with following overlays:• The DPA meets all published requirements of FHA; and• The first Mortgage sold to SWMC is not subject to any terms or conditions of a bondprogram; and• The DPA does not restrict the transfer of servicing rights of the first Mortgage sold to SWMC.In addition, it may not require prior notification or approval from the sponsoring authority inthe event of the transfer of the first mortgage’s servicing rights.Escrow Holdback forMinor RepairsAllowed only if repair is completed within 5 Days.1

EXPRESS FHA Manufactured Housing - XP12S01F00Loan Purpose • Purchase• Rate & Term Refinance• Streamline RefinanceAmortization TermOccupancyFixed Rate: 30 YearsOwner-occupied properties onlyEligible Properties • 1-Unit Manufactured Home• HUD-approved Manufactured Condos• Leasehold Manufactured Home PropertiesNote: Single-wide Manufactured Homes are not allowed.AutomatedUnderwritingMinimum CreditScoreDU Approve/Eligible or LP Accept/Eligible only. Manual underwriting is not acceptable except onnon-credit qualifying Streamline Refinances.630580 for Streamline RefinanceIf bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or public records,then the minimum FICO required is 680.Maximum DTI Ratios 35/45LTV / CLTVLoan Purpose LTV CLTVPurchase 96.5% NARate & Term Refinance 97.75% NAStreamline Refinance 97.75% 1, 2 NANote: HUD Repo is not allowed with LTV > 96.5%. At least 3.5% down payment is must.•1 Maximum loan amount for FHA Streamline Refinance without Appraisals cannot exceed theoutstanding principal balance, minus applicable refund of the UFMIP, plus the new UFMIP thatwill be charged on the refinance.2• LTV/CLTV for FHA Streamline Refinance without Appraisals use the original appraised value.The maximum accessible credit limits must be used when considering HELOCs (FHA Policy4155.1 3.C.2).Maximum LoanAmountNon-occupying CoborrowerSubordinateFinancingFlip WaiverDown PaymentAssistance (DPA)Escrow Holdback forMinor Repairs1 Unit: Lesser of $417,000 or maximum county limitClick Here for County limitsNot allowed for credit qualificationNot allowedSun West offers Property Flip Waiver as a separate product. Please Click Here to view FHAProperty Flip Waiver guidelines.Allowed in conjunction with first mortgage loans with following overlays:• The DPA meets all published requirements of FHA; and• The first Mortgage sold to SWMC is not subject to any terms or conditions of a bondprogram; and• The DPA does not restrict the transfer of servicing rights of the first Mortgage sold to SWMC.In addition, it may not require prior notification or approval from the sponsoring authority inthe event of the transfer of the first mortgage’s servicing rights.• The FICO requirement for borrowers using DPA program is 680 and borrower must have 3months’ reserves.Not allowed2

EXPRESS FHA 203(K) - XP11S00O00Loan Purpose • Purchase• Rate & Term RefinanceAmortization Term • Fixed Rate: 15 Years and 30 YearsOccupancy • Owner-occupied properties onlyEligible Properties • Attached / Detached SFRs• PUDs• HUD-approved Condos• Manufactured Housing• 2-4 UnitsAutomatedUnderwriting• DU Approve/Eligible or LP Accept/Eligible only.• Repair restrictions apply on “Express” 203(K).Minimum Credit Score • 630• Additions and utility replacement and/or reconditioning require a minimum 740 FICO.If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or public records,then the minimum FICO required is 680Maximum DTI Ratios 45/50LTV / CLTVLoan Purpose LTV CLTVPurchase 96.5% 100% 1Rate & Term Refinance 97.75% 97.75%•1 CLTV allowed is 105% for purchases, if using a Govt. Down Payment Assistance Program.• Maximum LTV for 2-4 unit properties, with non-occupying co-borrower, is 75%.Maximum LoanAmount• 1 Unit: Lesser of $417,000 or maximum county limit• 2 Units: Lesser of $533,850 or maximum county limit• 3 Units: Lesser of $645,300 or maximum county limit• 4 Units: Lesser of $801,950 or maximum county limitClick Here for County limitsLoan Amount Calculation on Purchase Transactions:• Lesser of “As is value + Rehab cost” or “Sales price + Rehab cost”• Must not exceed 110% of after-improved value. For Condominiums, must not exceed100%.Loan Amount Calculation on Refinance Transactions:• 97.75% of lesser of “As is value + Rehab cost” or “Existing debt + Rehab cost + Closingcost and prepays”• Must not exceed 110% of after-improved value. For Condominiums, must not exceed100%.Non-occupying CoborrowerSubordinate FinancingDown PaymentAssistance (DPA)Loan Amountsavailable on a 203(k)loanAllowedAllowed• Allowed in conjunction with first mortgage loans with following overlays:• The DPA meets all published requirements of FHA; and• The first Mortgage sold to SWMC is not subject to any terms or conditions of a bondprogram; and• The DPA does not restrict the transfer of servicing rights of the first Mortgage sold toSWMC. In addition, it may not require prior notification or approval from the sponsoringauthority in the event of the transfer of the first mortgage’s servicing rights.Non-Streamline 203(k):Repairs allowed up to 50% of the loan amount.(For repair amount constituting more than 40% of loan amount, max. LTV will be 100%calculated at after improved value.)Streamline 203(k):The maximum rehab amount is $35,000 and will include at least 2 Inspection Fee draws, 2 titleupdates, and a 15% contingency reserve3

Requirement of HomeInspection203(K) Consultant &Contractors203(K) Self-HelpTypes of Repairs thatare eligible for a203(k) loanRepairs that areineligible on a 203(k)loanExclusions on a203(k) loanSupplementalOrigination FeeAdditional Forms andWork ExhibitsRequirementsAdditional GuidelinesThe Inspector must be approved by The American Society of Home Inspectors (www.ashi.org)or National Association of Home Inspectors, Inc. (www.nahi.org).A complete home inspection is required for all REO and vacant properties and for propertieswith repair amounts exceeding $15,000. REO and vacant properties are eligible understreamline 203(k); however, underwriter may advise about requirement of consultantdepending on the scope of work.Home inspections are not required for transactions using the services of RenovationReady(http://www.renovationready.com/)Home inspectors may not be an interested party, including the 203(K) consultant.SWMC must approve the use of all parties involved, including the consultant and contractor asapplicable.Not allowed.Non-Streamline 203(k):Roof replacement, health and safety hazard mitigation, landscaping required to mitigatedrainage or erosion issues, aesthetic landscaping when appraiser verifies that the valueincreases the dollar-for-dollar cost, sidewalk/driveway repair necessary for home access, majorrepair of termite damage, drywall/insulation replacement, most repairs which require permits,finishing basements. Egress window wells for basements will be admissible. Additions andutility replacement/reconditioning will be permissible borrower(s) decision credit score is 740 orabove. Structural and Foundation work will be permitted as long as the Contractors insurancecoverage is sufficient (normally general liability insurance coverage of 1,000,000/eachoccurrence will be acceptable).Streamline 203(k):Cosmetic Repairs such as financing purchase/installation of new appliances; patching holes;replacing doors; painting; lead paint abatement; new counters, cabinets, windows, carpet(subfloor repair requires Non-Streamline 203k); repair/installation of HVAC; weatherization;minor repair of termite damage. The property should be inhabitable at the time of loan closing.Houses never completed or where the certificate of occupancy was issued less than one yearago. SWMC reserves the right to determine if repairs are deemed unacceptable.Streamline 203(k):Upfront draws are only available for documented material costs (with receipts or invoices). Ifthe contractor is bonded, documenting material cost is not required to obtain an upfrontmaterial draw. Draws may not exceed 50% of the entire loan amount. If no draw is required,contractor must provide certification that no initial draw is necessary and that he/she hasavailable funds to complete the cost of rehabilitation.Geographic Restrictions: Sun West currently does not offer FHA 203(k) in the state of TX.1.5% of Rehabilitation Amount or $350, whichever is greater, must be charged.Consultant, if applicable• Specification of Repairs and Work Write-up exhibits must itemize material and laborcosts.• Consultant’s Identity of Interest• Master Draw Request (HUD-9746a)Contractor• Work Write-up exhibits must itemize material and labor costs.• Completed IRS-W9• License, E&O and/or Liability Insurance valid until rehabilitation is completed• Contractor Profile Form• Information for Contractors form• Homeowner and Contractor Agreement• Evidence of Assets or Sufficient Lines of Credit (VOD, Bank Statements, Credit linesetc.) to reasonably cover cost of material for rehabilitation. Draw request time line istaken into consideration. Not required when initial draw is provided on 203(K)streamline, see ‘Exclusion on 203(k) loan’ section above.Borrower• Borrower Identity of Interest Certification must be signed and dated by borrower(s),Consul• 203(K) Borrower Acknowledgement must be signed, dated and completed byborrower(s).• Conference call with borrower to be completed by SWMC.LandSafe Title is not acceptable as the title company4

Express FHA Property Flip Waiver - XP11O00F00Loan Purpose • PurchaseAmortization Term • Fixed Rate: 30 YearsOccupancy • Owner-occupied properties onlyEligible Properties • Attached / Detached SFRs• PUDs• HUD-approved Condos• 2-4 Units• Manufactured HomesMinimum Credit Score 630If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or public records,then the minimum FICO required is 680AutomatedUnderwritingDU Approve/Eligible or LP Accept/Eligible only.Maximum DTI Ratios 45/55LTV / CLTVLoan Purpose LTV CLTVPurchase 96.5% 100% 1•1 CLTV allowed is 105% for purchases, if using a Govt. Down Payment Assistance Program.• Maximum LTV for 2-4 unit properties, with non-occupying co-borrower, is 75%.Maximum LoanAmountNon-occupying CoborrowerSubordinate FinancingEscrow Holdback forMinor RepairsDown PaymentAssistance (DPA)Listing and SellingAgentSellerIf Sales Price exceeds20% of SellerAcquisition Cost• 1 Unit: Lesser of $417,000 or maximum county limit• 2 Units: Lesser of $533,850 or maximum county limit• 3 Units: Lesser of $645,300 or maximum county limit• 4 Units: Lesser of $801,950 or maximum county limitClick Here for County limitsAllowedAllowedAllowed only if repair is completed within 5 Days.Allowed in conjunction with first mortgage loans with following overlays:• The DPA meets all published requirements of FHA; and• The first Mortgage sold to SWMC is not subject to any terms or conditions of a bondprogram; and• The DPA does not restrict the transfer of servicing rights of the first Mortgage sold toSWMC. In addition, it may not require prior notification or approval from the sponsoringauthority in the event of the transfer of the first mortgage’s servicing rights.• Cannot be the same or related.• There must NOT be an identity of interest or a potential borrower situation.Seller must be an individual; cannot be an LLC or corporation.Exception for LLC Seller 3 may be granted provided following documents are provided in theloan package:1. Articles of incorporation2. List of officers, directors, and shareholders3. Certificate of Good standing3 The underwriter carefully reviews all of the docs to determine that there is NO relationbetween the LLC and either the mortgage broker, selling agent, or the borrower.• A second appraisal is required with appraiser documenting the reasons for the increase invalue.• Property inspection ordered by Mortgagee is required.• The second appraisal will be ordered by Sun West Mortgage Company, Inc.Transfer of Property • No intermediate transfer is allowed.Transfer of Title • No recent transfers to the Seller are allowed.Program ExpirationDate• The program is set to expire December 31, 2012 and the expiration date applies to thedate of Purchase Contract.5

EXPRESS USDA LOAN PROGRAMSEXPRESS USDA Fixed Rate Product - XP61S00F00Loan Purpose • Purchase• Rate & Term RefinanceAmortization Term • Fixed Rate: 30 YearsOccupancy • Owner-occupied properties onlyEligible Properties • Attached / Detached SFRs• PUDs• CondosAutomatedUnderwritingGUS Approval only.Credit Scores 640If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or public records,then the minimum FICO required is 680Maximum DTI Ratios 36/50LTV / CLTVLoan Purpose LTV CLTVPurchase 100% NARate & Term Refinance 100% NAMaximum Loan Amount • $417,000 or maximum county limitNon-occupying CoborrowerSubordinate FinancingFlip WaiverNot allowedNot allowedPermitting under following conditions:• A property inspection report ordered by SWMC is must. If the borrower chooses to obtainone, SWMC can utilize such borrower-ordered inspection report.• Prior transfers will be carefully reviewed to ensure the values of the transfers represent abenefit to the borrower. The transfers should be arm’s length and not flipped to set falsevalue trends.• A second (conventional) appraisal may be required and ordered by SWMC, if the sale priceof the property is 20% or more than the seller’s acquisition cost.6

PRIME FHA LOAN PROGRAMSPrime Standard FHA Loan Programs - SO11S01F00 (Fixed), SM11S00F00 (ARM)Loan Purpose • Purchase• Rate & Term Refinance• Cash-Out Refinance (Not available in Texas)• Streamline Refinance (Sun West offers Streamline Refinance as a separate product. Please ClickHere to view FHA Streamline Refinance guidelines.)AmortizationTerm• Fixed Rate: 15 Years and 30 Years• Adjustable Rate: 3/1 and 5/1Occupancy • Owner-occupied properties onlyEligibleProperties• Attached / Detached SFRs• PUDs• HUD-approved Condos• 2-4 UnitsCredit ScoresLoan PurposeLoan ScenarioMinimumFICODTI Back Ratio 20% 680HUD Repo with Down Payment < 3.5% 680Rate & TermRefinancesCash-Out RefinanceDTI Back Ratio 43 640LTV 75% 720All Loan Purposes 2-4 Units 680Note:• Non-traditional credit is not allowed.• The FICO requirement for borrowers using Down Payment Assistance (DPA) program is 680 andborrower must have 3 months’ reserves.• If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or public records,then the minimum FICO required is 680 or as per the above matrix, whichever is higher.Approval TypeSelf EmployedDU Approve/Eligible or LP Accept/Eligible only.AllowedMortgage Lates • None in last 24 months on any mortgageCollectionAccountsHousingPayment Shock• Housing-expense related collection accounts within 24 months are not allowed.• Other collections (including medical) are subject to UW discretion on the file.This guideline is applicable to Purchase transactions only. Housing Payment Shock is calculated as thedifference between the new housing payment and existing housing payment divided by existing housingpayment times 100. Existing housing payment must be documented.Loan ScenarioMaximum HousingPayment Shock620 43 20%SubordinateFinancingMaximum LoanAmountMaximumNumber ofPropertiesFinanced byborrowerFlip WaiverAllowed• 1 Unit: Lesser of $417,000 or maximum county limit• 2 Units: Lesser of $533,850 or maximum county limit• 3 Units: Lesser of $645,300 or maximum county limit• 4 Units: Lesser of $801,950 or maximum county limitClick Here for County limits• 2 (inclusive of subject)Sun West offers Property Flip Waiver as a separate product. Please Click Here to view FHA Property FlipWaiver guidelines.7

PITI Reserves • 3 months’ reserves, excluding Gift Funds, required for First Time Home Buyer if Housing PaymentShock > 20% and FICO < 680 and DTI Back Ratio is > 43• 3 months’ reserves, excluding Gift Funds, required for 3-4 unit properties;• 3 months’ reserves on 2-unit properties if DTI Back Ratio without rental income exceeds 60• 6 months’ reserves if LTV/CLTV > 80% and proposed rents are used to qualify and DTI Back Ratiowithout rental income exceeds 60Gift Funds • FICO greater than or equal to 680: Allowed, no additional reserve requirements.• FICO less than 680: Allowed only when borrower has 3 months reserves, excluding gift funds.LTV / CLTVLoan Purpose LTV CLTVPurchase 96.5% 100% 1Rate & Term Refinance 97.75% 97.75% 2Cash-Out Refinance 85% 85%Maximum DTIRatios•1 CLTV allowed is 105% for purchases, if using a Govt. Down Payment Assistance Program.•2 CLTV allowed for R/T refinances is 115% for loans qualifying under HUD ML 10-23 with FICO morethan 720.• Maximum LTV for 2-4 unit properties, with non-occupying co-borrower, is 75%.Loan ScenarioMax. FrontRatioMax. BackRatio620 20% 45 553-4 unit properties 31 43Down PaymentAssistance(DPA)Cash Out onShort Pay-OffEscrow Holdbackfor MinorRepairsFHA Refinanceconsolidating 1 stand 2 nd liensNote: When a non-occupying co-applicant is used to qualify the borrower:• DTI Back Ratio calculated without using non-occupying applicant's income must not exceed 60.• Proposed rents cannot be used as income to qualify.*If the borrower has at least 3 months’ PITI reserves excluding gift funds, the maximum ratios allowedare 45% (Front) and 55% (Back).Allowed in conjunction with first mortgage loans with following overlays:• The DPA meets all published requirements of FHA; and• The first Mortgage sold to SWMC is not subject to any terms or conditions of a bond program; and• The DPA does not restrict the transfer of servicing rights of the first Mortgage sold to SWMC. Inaddition, it may not require prior notification or approval from the sponsoring authority in the eventof the transfer of the first mortgage’s servicing rights.• The FICO requirement for borrowers using DPA program is 680 and borrower must have 3 months’reserves.Not allowedAllowed only if repair is completed within 5 Days.An FHA Refinance involving the refinance of both 1st and 2nd liens into a single FHA loan, in which the2nd lien was a HELOC more than 12 months old, is permissible as a Rate and Term refinance. TheHELOC loan balance eligible to be added to the new loan amount would be:• The current loan balance, if there were no draws in the last 12 months or if the draws were for thepurposes of repairs and rehabilitation.• If there were draws in the last 12 months which were for the purposes other than repair andrehabilitation, only the draws of up to $1,000 may be added to the refinance loan amount.• If the balance or any portion of an equity line of credit in excess of $1,000 was advanced within thepast 12 months and was for purposes other than repairs and rehabilitation of the property, thatportion above and beyond $1,000 of the line of credit is NOT eligible for inclusion in the newmortgage. These amounts must be paid from the Borrower's funds at closing or the transactionmust be treated as a Cash-Out Refinance and must meet the Cash-Out refinance guidelines (85%LTV, etc).8

PRIME FHA Manufactured Housing - AA12S01F00Loan Purpose • Purchase• Rate & Term Refinance• Streamline Refinance (Sun West offers Streamline Refinance as a separate product. Please ClickHere to view FHA Streamline Refinance guidelines.)AmortizationTerm• Fixed Rate: 30 YearsOccupancy • Owner-occupied properties onlyEligibleProperties• 1-Unit Manufactured Home• HUD-approved Manufactured Condos• Leasehold Manufactured Home PropertiesNote: Single-wide Manufactured Homes are not allowed.Credit ScoresLoan PurposeLoan ScenarioMinimumFICOPurchasesRate & TermRefinancesHousing Payment Shock 20% 680All Rate and Term Refinances 660All Loan Purposes Leasehold Properties 700Note:• Non-traditional credit is not allowed.• The FICO requirement for borrowers using Down Payment Assistance (DPA) program is 680 andborrower must have 3 months’ reserves.• If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or public records,then the minimum FICO required is 680, or as per the above matrix, whichever is higherApproval TypeSelf EmployedDU Approve/Eligible or LP Accept/Eligible only.AllowedMortgage Lates • None in last 24 months on any mortgage• None allowed ever for leasehold propertiesCollectionAccountsHousingPayment Shock• Housing-expense related collection accounts within 24 months are not allowed.• Other collections (including medical) are subject to UW discretion on the file.• No collection accounts or charge offs allowed ever for leasehold properties.This guideline is applicable to Purchase transactions only. Housing Payment Shock is calculated as thedifference between the new housing payment and existing housing payment divided by existing housingpayment times 100. Existing housing payment must be documented.Loan ScenarioMaximum HousingPayment Shock660 680N/ANon-occupyingCo-borrowerSubordinateFinancingLTV / CLTVNot allowed for credit qualificationNot allowedLoan Purpose LTV CLTVPurchase 96.5% NARate & Term Refinance 97.75% NANote: HUD Repo is not allowed with LTV > 96.5%. At least 3.5% down payment is must.Maximum LoanAmountMaximumNumber ofPropertiesFinanced byborrowerPITI ReservesGift FundsFlip Waiver• 1 Unit: Lesser of $417,000 or maximum county limitClick Here for County limits• 1 (inclusive of subject)• Limitation does not apply if loan purpose is streamline refinance3 months’ reserves requiredNot allowedSun West offers Property Flip Waiver as a separate product. Please Click Here to view FHA Property FlipWaiver guidelines.9

Escrow Holdbackfor MinorRepairsMaximum DTIRatiosDown PaymentAssistance(DPA)Not allowed35%/45%Allowed in conjunction with first mortgage loans with following overlays:• The DPA meets all published requirements of FHA; and• The first Mortgage sold to SWMC is not subject to any terms or conditions of a bond program; and• The DPA does not restrict the transfer of servicing rights of the first Mortgage sold to SWMC. Inaddition, it may not require prior notification or approval from the sponsoring authority in the eventof the transfer of the first mortgage’s servicing rights.• The FICO requirement for borrowers using DPA program is 680 and borrower must have 3 months’reserves.10

PRIME FHA Jumbo - SO41S00F00Loan Purpose • Purchase• Rate & Term Refinance• Cash-Out Refinance (Not available in Texas)Amortization Term • Fixed Rate: 30 Years• Streamline Refinance (Sun West offers Streamline Refinance as a separate product. PleaseClick Here to view FHA Streamline Refinance guidelines.)• Adjustable Rate: 5/1Occupancy • Owner-occupied properties onlyEligible Properties • Attached / Detached SFRs• PUDs• HUD-approved Condos• 2-4 UnitsCredit ScoresLoan PurposeLoan ScenarioMinimumFICOPurchasesRate & TermRefinancesCash-Out RefinancesHousing Payment Shock 20% 680All Rate and Term Refinances 660LTV 75% 720All Loan Purposes 2-4 Units 680Note:• Non-traditional credit is not allowed.• The FICO requirement for borrowers using Down Payment Assistance (DPA) program is680 and borrower must have 3 months’ reserves.• If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or publicrecords, then the minimum FICO required is 680 or as per the above matrix, whichever ishigher.Approval TypeSelf EmployedDU Approve/Eligible or LP Accept/Eligible only.AllowedMortgage Lates • None in last 24 months on any mortgageCollection Accounts • Housing-expense related collection accounts within 24 months are not allowed.• Other collections (including medical) are subject to UW discretion on the file.Housing PaymentShockThis guideline is applicable to Purchase transactions only. Housing Payment Shock is calculated asthe difference between the new housing payment and existing housing payment divided by existinghousing payment times 100. Existing housing payment must be documented.Loan ScenarioMaximum HousingPayment Shock660

Maximum Number ofProperties Financedby borrower• 2 (inclusive of subject)PITI Reserves • Minimum of 2 months’ reserves, excluding Gift Funds, required for all loans except non-credit1-2 unit non-credit qualifying streamline refinances.• 3 months’ reserves, excluding Gift Funds, required for 3-4 unit properties;• 3 months’ reserves on 2-unit properties if DTI Back Ratio without rental income exceeds 60• 6 months’ reserves if LTV/CLTV > 80% and proposed rents are used to qualify and DTI BackRatio without rental income exceeds 60Gift Funds • FICO greater than or equal to 680: Allowed, no additional reserve requirements.• FICO less than 680: Allowed only when borrower has 3 months reserves, excluding gift funds.Maximum DTI RatiosLoan ScenarioMax. FrontRatioMax. BackRatio1-2 unit properties 40 453-4 unit properties 31 43Note: When a non-occupying co-applicant is used to qualify the borrower:• DTI Back Ratio calculated without using non-occupying applicant's income must not exceed 60.• Proposed rents cannot be used as income to qualify.Flip Waiver • Offered upon special exception only. Please contact your account executive.Down PaymentAssistance (DPA)Cash Out on ShortPay-OffEscrow Holdback forMinor RepairsFHA Refinanceconsolidating 1 st and2 nd liensAllowed in conjunction with first mortgage loans with following overlays:• The DPA meets all published requirements of FHA; and• The first Mortgage sold to SWMC is not subject to any terms or conditions of a bond program;and• The DPA does not restrict the transfer of servicing rights of the first Mortgage sold to SWMC. Inaddition, it may not require prior notification or approval from the sponsoring authority in theevent of the transfer of the first mortgage’s servicing rights.• The FICO requirement for borrowers using DPA program is 680 and borrower must have 3months’ reserves.Not allowedNot allowedAn FHA Refinance involving the refinance of both 1st and 2nd liens into a single FHA loan, in whichthe 2nd lien was a HELOC more than 12 months old, is permissible as a Rate and Term refinance.The HELOC loan balance eligible to be added to the new loan amount would be:• The current loan balance, if there were no draws in the last 12 months or if the draws were forthe purposes of repairs and rehabilitation.• If there were draws in the last 12 months which were for the purposes other than repair andrehabilitation, only the draws of up to $1,000 may be added to the refinance loan amount.• If the balance or any portion of an equity line of credit in excess of $1,000 was advancedwithin the past 12 months and was for purposes other than repairs and rehabilitation of theproperty, that portion above and beyond $1,000 of the line of credit is NOT eligible forinclusion in the new mortgage. These amounts must be paid from the Borrower's funds atclosing or the transaction must be treated as a Cash-Out Refinance and must meet the Cash-Out refinance guidelines (85% LTV, etc).12

PRIME FHA Streamline RefinanceLoan Program • Standard Fixed Rate - SO11S01F00• Standard ARM - SM11S00F00• Manufactured Housing - AA12S01F00• FHA Jumbo - SO41S00F00Loan Purpose • Streamline RefinanceAmortization Term • Fixed Rate: 15 Years*• Fixed Rate: 30 Years• Adjustable Rate: 3/1**• Adjustable Rate: 5/1*Applicable only of Standard Fixed Rate Loan Program**Not offered on FHA Jumbo Loan ProgramAdjustable Rate are not offered on Manufactured HousingOccupancy • Owner-occupied properties onlyEligible Properties • Attached / Detached SFRs• PUDs• HUD-approved Condos• 2-4 Units• Manufactured HousingDebt to Income(DTI) Ratio & FICOMatrixProduct TypeStandard FHAFHA JumboUnit PropertiesMax FrontRatio 1Max BackRatio 1Minimum FICO1-2 Units 45% 55% 6403-4 Units 31% 43% 6401-2 Units 40% 45% 6403-4 Units 31% 43% 640ManufacturedHousingManufacturedPropertiesLeaseholdProperties35% 45% 64029% 35% 6401 Ratio assessment is for FHA required credit-qualifying streamlines and SWMC’s income qualificationrequirement.Note: If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or publicrecords, then the minimum FICO required is 680 or as per the above matrix, whichever is higher.Approval Type• Manual underwriting is acceptable.• AUS (DU/LP) approval will only be acceptable on FHA required credit-qualifying streamlines.• FHA required credit-qualifying streamlines must meet standard credit and income requirements.Mortgage Lates • None in last 24 months on any mortgage• None allowed ever for manufactured leasehold propertiesSubordinateFinancing• Allowed for all types except for Manufactured HousingLTV / CLTV • 125 / 125• Maximum LTV for 2-4 unit properties, with non-occupying co-borrower, is 75%.CollateralAssessmentMinimum &Maximum LoanAmountMaximum Number ofProperties Financedby borrower• AVM required for all properties acquired prior to 05/01/2010 except as detailed below.• Exterior only appraisal required when AVM cannot be obtained. A full appraisal is alsoacceptable.• Exterior only appraisal may be required when a property is located within a disaster area.See applicable product guidelines.• Limitation does not apply if loan purpose is streamline refinancePITI Reserves • 3 months’ reserves required for Manufactured Housing and 3-4 unit propertiesPayment HistoryDocumentationStreamlineRefinance QualifyingRequirements• Non-credit qualifying streamline refinance must evidence at least a 6-month mortgage history.• Based on the borrower’s original acquisition/purchase date guidelines apply as shown below.• For properties acquired prior to 05/01/2010FICO Option 1 Option 2680 and above Income Qualification 2 AVM LTV less than 125%Below 680 Income Qualification 2 AND AVM Based LTV less than 125%13

• For properties acquired on or after 05/01/2010FICORequirement680 and above No additional requirementsBelow 680 Income Qualification Required 22 See “Income Qualification” section for detailsIncome QualificationOptions• Income qualification applies to non-credit qualifying streamlines only (i.e. SWMC requiredincome qualification). FHA required credit-qualifying streamlines must meet standard creditand income requirements.• Income qualification can be completed by using either Option 1 or Option 2 discussed below:Option 1 Acceptable Forms Unacceptable Forms3 Month PITI Reserves1 month of bank statementssourcing all large deposits inaccordance to FHA guidelines401K, IRA, Pensions, GiftFunds*3-month PITI reserves is net of the funds required at closing.Option 2Limited Doc ReviewIncome TypeFor W-2 Wages OnlyFor income other than W-2wagesDocumentation Needed toQualify• 4506-T• 2011 W-2(s)• 1 month of pay stubs• VOE• 4506-T• 2011 IncomeDocumentation• Full tax returns for 2009,2010 and supportingdocumentation• For option 2, ratios must be within DTI matrix guidelines above.AVM Value Checks • You may order a Value Check for $15 through the SWMC Vendor Order System in SunSoft.• Estimated three-Hour turn-times for Value Checks.14

PRIME FHA 203(K) - AA11S00O00 & FHA 203(K) Jumbo - SM32S00F00Loan Purpose • Purchase• Rate & Term RefinanceAmortization Term • Fixed Rate: 30 YearsOccupancy • Owner-occupied properties onlyEligible Properties • Attached / Detached SFRs• PUDs• HUD-approved Condos• Manufactured Housing• 2-4 UnitsCredit ScoresLoan PurposeLoan ScenarioMinimumFICODTI Back Ratio 20% 680HUD Repo with Down Payment < 3.5% 680Rehabilitation amount > 40% of loan amount calculated atafter-improved value720DTI Back Ratio 43 640Rehabilitation amount > 40% of loan amount calculated atafter-improved value720All Loan Purposes 2-4 Units 680Note:• Non-traditional credit is not allowed.• The FICO requirement for borrowers using Down Payment Assistance (DPA) program is 680and borrower must have 3 months’ reserves.• If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or publicrecords, then the minimum FICO required is 680 or as per the above matrix, whichever ishigher.• Additions and utility replacement and/or reconditioning require a minimum 740 FICOApproval TypeSelf EmployedDU Approve/Eligible only.AllowedMortgage Lates • None in last 24 months on any mortgageCollectionAccountsHousing PaymentShock• Housing-expense related collection accounts within 24 months are not allowed.• Other collections (including medical) are subject to UW discretion on the file.This guideline is applicable to Purchase transactions only. Housing Payment Shock is calculated as thedifference between the new housing payment and existing housing payment divided by existinghousing payment times 100. Existing housing payment must be documented.Loan ScenarioMaximum HousingPayment Shock620 43 20%FICO => 680 and DTI Back Ratio > 43N/ASubordinateFinancingLTV / CLTVAllowedLoan Purpose LTV CLTVPurchase 96.5% 100% 1Rate & Term Refinance 97.75% 97.75%•1 CLTV allowed is 105% for purchases, if using a Govt. Down Payment Assistance Program.• Maximum LTV for 2-4 unit properties, with non-occupying co-borrower, is 75%.MinimumBorrowerContribution3.5% is required from borrower(s) “own” funds for FHA 203(K) Jumbo15

Loan AmountConforming 203K (Max Loan Amt)• 1 Unit: Lesser of $417,000 or maximum county limit• 2 Units: Lesser of $533,850 or maximum county limit• 3 Units: Lesser of $645,300 or maximum county limit• 4 Units: Lesser of $801,950 or maximum county limitClick Here for County limits203K Jumbo (Min Loan Amt)• 1 Unit: $417,000• 2 Units: $533,850• 3 Units: $645,300• 4 Units: $801,950Loan Amount Calculation on Purchase Transactions:• Lesser of “As is value + Rehab cost” or “Sales price + Rehab cost”• Must not exceed 110% of after-improved value. For Condominiums, must not exceed 100%.Loan Amount Calculation on Refinance Transactions:• 97.75% of lesser of “As is value + Rehab cost” or “Existing debt + Rehab cost + Closing cost andprepays”• Must not exceed 110% of after-improved value. For Condominiums, must not exceed 100%.Maximum Numberof PropertiesFinanced byborrower2 (inclusive of subject)PITI Reserves • 3 months’ reserves, excluding Gift Funds, required for First Time Home Buyer if Housing PaymentShock > 20% and FICO < 680 and DTI Back Ratio is > 43• 3 months’ reserves, excluding Gift Funds, required for 3-4 unit properties;• 3 months’ reserves if rehabilitation amount > 40% of loan amount calculated at after-improvedvalue• 3 months’ reserves on 2-unit properties if DTI Back Ratio without rental income exceeds 60• 6 months’ reserves if LTV/CLTV > 80% and proposed rents are used to qualify and DTI Back Ratiowithout rental income exceeds 60Gift Funds • FICO greater than or equal to 680: Allowed, no additional reserve requirements.• FICO less than 680: Allowed only when borrower has 3 months reserves, excluding gift funds.Maximum DTIRatiosLoan ScenarioMax. FrontRatioMax. BackRatio620 20% 45 503-4 unit properties 31 43Note: When a non-occupying co-applicant is used to qualify the borrower:• DTI Back Ratio calculated without using non-occupying applicant's income must not exceed 60.• Proposed rents cannot be used as income to qualify.*If the borrower has at least 3 months’ PITI reserves excluding gift funds, the maximum ratiosallowed are 45% (Front) and 50% (Back).Down PaymentAssistance (DPA)Cash Out on ShortPay-OffLoan Amountsavailable on a203(k) loanRequirement ofHome Inspection203(K) Consultant& Contractors• Allowed in conjunction with first mortgage loans with following overlays:• The DPA meets all published requirements of FHA; and• The first Mortgage sold to SWMC is not subject to any terms or conditions of a bond program; and• The DPA does not restrict the transfer of servicing rights of the first Mortgage sold to SWMC. Inaddition, it may not require prior notification or approval from the sponsoring authority in theevent of the transfer of the first mortgage’s servicing rights.• The FICO requirement for borrowers using DPA program is 680 and borrower must have 3months’ reserves.Not allowedNon-Streamline 203(k):Repairs allowed up to 50% of the loan amount.(For repair amount constituting more than 40% of loan amount, max. LTV will be 100% calculated atafter improved value.)Streamline 203(k):The maximum rehab amount is $35,000 and will include at least 2 Inspection Fee draws, 2 titleupdates, and a 15% contingency reserveThe Inspector must be approved by The American Society of Home Inspectors (www.ashi.org) orNational Association of Home Inspectors, Inc. (www.nahi.org).A complete home inspection is required for all REO and vacant properties and for properties requiringthe services of a consultant or properties with repair amounts exceeding $15,000. REO and vacantproperties are eligible under streamline 203(k); however, underwriter may advise about requirementof consultant depending on the scope of work.Home inspections are not required for transactions using the services of RenovationReady(http://www.renovationready.com/)Home inspectors may not be an interested party, including the 203(K) consultant.SWMC must approve the use of all parties involved, including the consultant and contractor asapplicable.16

203(K) Self-HelpTypes of Repairsthat are eligiblefor a 203(k) loanRepairs that areineligible on a203(k) loanNot allowed.Non-Streamline 203(k):Roof replacement, health and safety hazard mitigation, landscaping required to mitigate drainage orerosion issues, aesthetic landscaping when appraiser verifies that the value increases the dollar-fordollarcost, sidewalk/driveway repair necessary for home access, major repair of termite damage,drywall/insulation replacement, most repairs which require permits, finishing basements. Egresswindow wells for basements will be admissible. Additions and utility replacement/reconditioning will bepermissible when borrower(s) decision credit score is 740 or above. Structural and Foundation workwill be permitted as long as the Contractors insurance coverage is sufficient (normally general liabilityinsurance coverage of 1,000,000/each occurrence will be acceptable).Streamline 203(k):Cosmetic Repairs such as financing purchase/installation of new appliances; patching holes; replacingdoors; painting; lead paint abatement; new counters, cabinets, windows, carpet (subfloor repairrequires Non-Streamline 203k); repair/installation of HVAC; weatherization; minor repair of termitedamage. The property should be inhabitable at the time of loan closing.Houses never completed or where the certificate of occupancy was issued less than one year ago.SWMC reserves the right to determine if repairs are deemed unacceptable.Exclusions on a203(k) loanSupplementalOrigination FeeAdditional Forms andWork ExhibitsRequirementsAdditional GuidelinesStreamline 203(k):Upfront draws are only available for documented material costs (with receipts or invoices). If thecontractor is bonded, documenting material cost is not required to obtain an upfront material draw.Draws may not exceed 50% of the entire loan amount. If no draw is required, contractor must providecertification that no initial draw is necessary and that he/she has available funds to complete the costof rehabilitation.Geographic Restrictions: Sun West currently does not offer FHA 203(k) in the state of TX.1.5% of Rehabilitation Amount or $350, whichever is greater, must be charged.Consultant, if applicable• Specification of Repairs and Work Write-up exhibits must itemize material and laborcosts.• Consultant’s Identity of Interest• Master Draw Request (HUD-9746a)Contractor• Work Write-up exhibits must itemize material and labor costs.• Completed IRS-W9• License, E&O and/or Liability Insurance valid until rehabilitation is completed• Contractor Profile Form• Information for Contractors form• Homeowner and Contractor Agreement• Evidence of Assets or Sufficient Lines of Credit (VOD, Bank Statements, Credit linesetc.) to reasonably cover cost of material for rehabilitation. Draw request time line istaken into consideration. Not required when initial draw is provided on 203(K)streamline, see ‘Exclusion on 203(k) loan’ section above.Borrower• Borrower Identity of Interest Certification must be signed and dated by borrower(s),Consul• 203(K) Borrower Acknowledgement must be signed, dated and completed byborrower(s).• Conference call with borrower to be completed by SWMC.LandSafe Title is not acceptable as the title company17

PRIME FHA Property Flip Waiver - SO11O00F00Loan Purpose • PurchaseAmortization Term • Fixed Rate: 30 YearsOccupancy • Owner-occupied properties onlyEligible Properties • Attached / Detached SFRs• PUDs• HUD-approved Condos• 2-4 Units• Manufactured HomesCredit ScoresLoan ScenarioMinimumFICODTI Back Ratio 20% 680HUD Repo with Down Payment < 3.5% 6802-4 Units 680Note:• Non-traditional credit is not allowed.• The FICO requirement for borrowers using Down Payment Assistance (DPA) program is 680and borrower must have 3 months’ reserves.• If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or publicrecords, then the minimum FICO required is 680 or as per the above matrix, whichever ishigher.Approval TypeSelf EmployedMortgage LatesCollectionAccountsHousing PaymentShockDU Approve/Eligible or LP Accept/Eligible only.AllowedNone in last 24 months on any mortgage• Housing-expense related collection accounts within 24 months are not allowed.• Other collections (including medical) are subject to UW discretion on the file.This guideline is applicable to Purchase transactions only. Housing Payment Shock is calculated as thedifference between the new housing payment and existing housing payment divided by existinghousing payment times 100. Existing housing payment must be documented.Loan ScenarioMaximum HousingPayment Shock620 43 20%FICO => 680 and DTI Back Ratio > 43N/ASubordinateFinancingLTV / CLTVAllowedLoan Purpose LTV CLTVPurchase 96.5% 100% 1•1 CLTV allowed is 105% for purchases, if using a Govt. Down Payment Assistance Program.• Maximum LTV for 2-4 unit properties, with non-occupying co-borrower, is 75%.Maximum LoanAmountMaximum Numberof PropertiesFinanced byborrower• 1 Unit: Lesser of $417,000 or maximum county limit• 2 Units: Lesser of $533,850 or maximum county limit• 3 Units: Lesser of $645,300 or maximum county limit• 4 Units: Lesser of $801,950 or maximum county limitClick Here for County limits2 (inclusive of subject)PITI Reserves • 3 months’ reserves, excluding Gift Funds, required for First Time Home Buyer if Housing PaymentShock > 20% and FICO < 680 and DTI Back Ratio is > 43• 3 months’ reserves, excluding Gift Funds, required for 3-4 unit properties;• 3 months’ reserves on 2-unit properties if DTI Back Ratio exceeds 60• 3 months’ reserves, excluding Gift Funds, required for Manufactured Homes• 6 months’ reserves if LTV/CLTV > 80% and proposed rents are used to qualify and DTI Back Ratiowithout rental income exceeds 6018

Gift Funds • FICO greater than or equal to 680: Allowed, no additional reserve requirements.• FICO less than 680: Allowed only when borrower has 3 months reserves, excluding gift funds.Cash Out on ShortPay-OffNot allowedEscrow Holdbackfor Minor RepairsAllowed only if repair is completed within 5 Days.Maximum DTIRatiosLoan ScenarioMax. FrontRatioMax. BackRatio620 20% 45 553-4 unit properties 31 43Down PaymentAssistance (DPA)Listing and SellingAgentSellerIf Sales Priceexceeds 20% ofSeller AcquisitionCostTransfer ofPropertyNote: When a non-occupying co-applicant is used to qualify the borrower:• DTI Back Ratio calculated without using non-occupying applicant's income must not exceed 60.• Proposed rents cannot be used as income to qualify.*If the borrower has at least 3 months’ PITI reserves excluding gift funds, the maximum ratiosallowed are 45% (Front) and 55% (Back).Allowed in conjunction with first mortgage loans with following overlays:• The DPA meets all published requirements of FHA; and• The first Mortgage sold to SWMC is not subject to any terms or conditions of a bond program; and• The DPA does not restrict the transfer of servicing rights of the first Mortgage sold to SWMC. Inaddition, it may not require prior notification or approval from the sponsoring authority in theevent of the transfer of the first mortgage’s servicing rights.• The FICO requirement for borrowers using DPA program is 680 and borrower must have 3months’ reserves.• Cannot be the same or related.• There must NOT be an identity of interest or a potential borrower situation.Seller must be an individual; cannot be an LLC or corporation.Exception for LLC Seller 3 may be granted provided following documents are provided in the loanpackage:1. Articles of incorporation2. List of officers, directors, and shareholders3. Certificate of Good standing3 The underwriter carefully reviews all of the docs to determine that there is NO relation between theLLC and either the mortgage broker, selling agent, or the borrower.• A second appraisal is required with appraiser documenting the reasons for the increase in value.• Property inspection ordered by Mortgagee is required.• The second appraisal will be ordered by Sun West Mortgage Company, Inc.• No intermediate transfer is allowed.Transfer of Title • No recent transfers to the Seller are allowed.ProgramExpiration Date• The program is set to expire December 31, 2012 and the expiration date applies to the date ofPurchase Contract.19

PRIME VA LOAN PROGRAMSPRIME Standard VA Loan Program - SO15S00O00 / VA Flip Waiver Fixed - SO15O00O00Loan Purpose • Purchase• Cash-Out Refinance (Not available in Texas)• VA IRRRL (Streamline) with AppraisalAmortization Term • Fixed Rate: 15 Years and 30 Years• Adjustable Rate: 3/1 and 5/1Occupancy • Owner-occupied properties onlyEligible Properties • Attached / Detached SFRs• PUDs• Condos• 2-4 UnitsCredit ScoresLoanPurposeLoan ScenarioMinimumFICODTI Back Ratio 20% 680Cash-OutRefinanceLTV 43N/ASubordinate FinancingLTV / CLTVAllowedLoan Purpose LTV CLTVPurchase / VA IRRRL with Appraisal 100% 100%Cash-Out Refinance 90% 90%• Maximum LTV for 2-4 unit properties, with non-occupying co-borrower, is 75%.Maximum LoanAmountMaximum Number ofProperties Financed byborrowerMinimum VAEntitlement1 to 4 Units: $417,000• 2 (inclusive of subject)• Must be 25% (Not applicable to VA IRRRLs)20

PITI Reserves • 3 months’ reserves, excluding Gift Funds, required for First Time Home Buyer if HousingPayment Shock > 20% and FICO < 680 and DTI Back Ratio is > 43Maximum DTI Ratios• 3 months’ reserves, excluding Gift Funds, required for 3-4 unit properties;• 3 months’ reserves on 2-unit properties if DTI Back Ratio exceeds 60• 6 months’ reserves if LTV/CLTV > 80% and proposed rents are used to qualify and DTI BackRatio without rental income exceeds 60• Does not apply to VA IRRRL with appraisal if borrower is not credit qualified.Loan ScenarioMax. FrontRatioMax. BackRatio620 20% 45 553-4 unit properties 31 43Note: When a non-occupying co-applicant is used to qualify the borrower:• DTI Back Ratio calculated without using non-occupying applicant's income must not exceed60.• Proposed rents cannot be used as income to qualify.• Does not apply to VA IRRRL with appraisal if borrower is not credit qualified.Flip WaiverCash Out on ShortPay-OffEscrow Holdback forMinor RepairsPermitting under following conditions:• A property inspection report ordered by SWMC is must. If the borrower chooses to obtainone, SWMC can utilize such borrower-ordered inspection report.• Prior transfers will be carefully reviewed to ensure the values of the transfers represent abenefit to the borrower. The transfers should be arm’s length and not flipped to set falsevalue trends.• A second (conventional) appraisal may be required and ordered by SWMC, if the sale price ofthe property is 20% or more than the seller’s acquisition cost.• Not allowed• Not allowed21

PRIME VA IRRRL without Appraisal - AA15S00F00Loan Purpose • Interest Rate Reduction Refinancing Loan (IRRRL) without appraisalAmortization Term • Fixed Rate: 30 Years, 15 Years, 3/1 ARM, 5/1 ARMOccupancy • Primary Residence OnlyEligible Properties • Attached / Detached SFRs• PUDs• Condos• Manufactured Homes are Not Allowed under this program.Minimum Credit Score • 640Bankruptcy, Foreclosures,Short Sale, & MortgageLates• Credit derogatories such as bankruptcy, foreclosure, short sale, or 90-day mortgage latenot allowed within last 36 months.• If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or publicrecords, then the minimum FICO required is 680.Mortgage Lates • None in last 12 months on any mortgageCollection Accounts • Housing-expense related collection accounts within 24 months are not allowed.• Other collections (including medical) are subject to UW discretion on the file.Subordinate Financing • Allowed• Re-subordination certificate from current lender requiredLTV / CLTV • 125 / 125• For LTV > 105, credit qualification applies. Please refer to Credit Qualification section.• For LTV > 105, pricing hit applies. Please refer to the rate sheet.Maximum Loan Amount • Lesser of $417,000 or maximum county limit• Click Here for County limits• Loan amounts over $417,000 not allowedCredit Qualification • Credit qualification not required for LTV 105, a full VA income underwriting required using pay stubs, tax returns, and4506T, as applicable.• Credit qualification is not required for properties acquired on or after 05/01/2010,regardless of LTV.Maximum DTI Ratios • 40 / 50Note: When a non-occupying co-applicant is used to qualify the borrower, DTI BackRatio calculated without using non-occupying applicant's income must not exceed 60.Payment HistoryDocumentationMaximum Cash Back toBorrowerVerbal Verification ofEmploymentSubject PropertyValuationValue Check Requeststhrough SWMC VendorOrder System• Non-credit qualifying VA IRRRLs must evidence at least 3-month mortgage history.• $500, except in TX where no cash back is allowed• Mandatory• Must be dated within 10 days of funding.• SWMC must receive a RELS AVM or report for each mortgage submission, except wheresubject property was purchased after January 1, 2010, wherein such properties will notrequire third party valuations. CoreLogic AVM’s are acceptable within tolerancesdescribed below.• The RELS AVM predicted value range:o up to 20% variance (FSD): up to 95% LTV;o up to 13% variance (FSD): from 95.01% LTV to 125% LTV.• “No Hit” results on AVMs may require an alternative valuation, including a full orexterior-only conventional appraisal in lieu of an AVM. Transaction will continue to beconsidered without appraisal.• You may order a Value Check for $15 through the SWMC Vendor Order System inSunSoft.• Estimated three-Hour turn-times for Value Checks.22

PRIME VA (Jumbo) Loan Program - SO32S00F00Loan Purpose • Purchase• Cash-Out Refinance (Not available in Texas)• VA Jumbo IRRRL (Streamline) with AppraisalAmortization Term • Fixed Rate: 15 Years and 30 Years• Adjustable Rate: 3/1 and 5/1Occupancy • Owner-occupied properties onlyEligible Properties • Attached / Detached SFRs• PUDs• Condos• 2-4 UnitsCredit ScoresLoanPurposeLoan ScenarioMinimumFICOPurchasesCash-OutRefinanceHousing Payment Shock 20% 700LTV

Maximum DTI RatiosLoan ScenarioMax. FrontRatioMax. BackRatio1-2 unit properties 43 473-4 unit properties 31 43Note: When a non-occupying co-applicant is used to qualify the borrower:• DTI Back Ratio calculated without using non-occupying applicant's income must not exceed60.• Proposed rents cannot be used as income to qualify.• Does not apply to VA IRRRL with appraisal if borrower is not credit qualified.Flip WaiverCash Out on ShortPay-OffEscrow Holdback forMinor RepairsPermitting under following conditions:• A property inspection report ordered by SWMC is must. If the borrower chooses to obtain one,SWMC can utilize such borrower-ordered inspection report.• Prior transfers will be carefully reviewed to ensure the values of the transfers represent abenefit to the borrower. The transfers should be arm’s length and not flipped to set false valuetrends.• A second (conventional) appraisal may be required and ordered by SWMC, if the sale price ofthe property is 20% or more than the seller’s acquisition cost.• Not allowed• Not allowed24

PRIME VA Mega Jumbo Loan Program - SO32O00O00Locks are allowed on this program only upon underwriting approvalLoan Purpose • PurchaseAmortization Term • Fixed Rate: 25 Years and 30 Years• Adjustable Rate: 5/1Occupancy • Owner-occupied properties onlyEligible Properties • Attached / Detached SFRs• PUDsCredit ScoresLoan PurposeLoan ScenarioMinimumFICOPurchasesLess than or equal to $1.5 Million 740Greater than $1.5 Million but Less than or equal to $3.0 Million 780Note:• Non-traditional credit is not allowed.• If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report, then theborrower is ineligible.AppraisalApproval TypeSelf EmployedMortgage Lates• Less than or equal to $1.5 Million: 1 Full appraisal ordered by Sun West Mortgage.• Greater than $1.5 Million but Less than or equal to $3.0 Million 2 Full appraisals ordered bySun West Mortgage.DU Approve/Eligible or LP Accept/Eligible only. Manual underwriting is not acceptable.AllowedNone in last 36 months on any mortgageCollection Accounts • Housing-expense related collection accounts within 24 months are not allowed.• Other collections (including medical) are subject to UW discretion on the file.Housing PaymentShockSubordinate FinancingLTV / CLTVSubject to SWMC approval.Not AllowedLoan Amount LTV CLTVLess than or equal to $1.0 Million(85% / 85% for all areas except those in Market Recovery Area List)Greater than $1.0 Million but Less than or equal to $1.5 Million(80% / 80% for all areas except those in Market Recovery Area List)Greater than $1.5 Million but Less than or equal to $2.0 Million(75% / 75% for all areas except those in Market Recovery Area List)Greater than $2.0 Million but Less than or equal to $3.0 Million(70% / 70% for all areas except those in Market Recovery Area List)90% NA85% NA80% NA75% NAMaximum LoanAmountMinimum EntitlementGuarantee$3,000,000Veteran must have full entitlement available or additional down payment may be required.Minimum Reserves • Less than or equal to $1.5 Million: 6 months PITIA• Greater than $1.5 Million but Less than or equal to $3.0 Million: 12 months PITIA• Additional 3 months PITI reserves for every investment propertyMaximum DTI Ratios 32%/40%Flip WaiverEscrow Holdback forMinor RepairsMarket Recovery AreaListPermitted, please see flip guidelines in the VA product guidelines.Not allowedCA Counties: Contra Costa, Los Angeles, San Benito, San Francisco, San Mateo, Santa Clara,Alameda, Marin, OrangeHI Counties: Hawaii, Honolulu, Kalawao, Kauai, MauiMD Counties: Prince George's, Calvert, Charles, Frederick, MontgomeryNJ Counties: Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic,Somerset, Sussex, UnionNY Counties: New York, Bronx, Kings, Nassau, Putnam, Queens, Richmond, Rockland, Suffolk,Westchester25

PRIME USDA LOAN PROGRAMPRIME USDA Fixed Rate Product - SD61S00F00Loan Purpose • Purchase• Rate & Term RefinanceAmortization Term • Fixed Rate: 30 YearsOccupancy • Owner-occupied properties onlyEligible Properties • Attached / Detached SFRs• PUDs• CondosCredit ScoresLoanPurposeLoan ScenarioMinimumFICODTI Back Ratio < 43 and Housing Payment Shock < 20% 640PurchasesDTI Back Ratio 20% 640DTI Back Ratio > 43 and Housing Payment Shock 43 and Housing Payment Shock > 20% 680Rate & TermRefinancesAll Rate & Term Refinances 640Note: Non-traditional credit is not allowed.Approval TypeSelf EmployedBankruptcy &ForeclosuresMortgage LatesGUS Approval Only.Allowed• None in past 4 years• If bankruptcy, foreclosure, short sale or deed in lieu appears on credit report or publicrecords, then the minimum FICO required is 680.None in last 24 months on any mortgageCollection Accounts • Housing-expense related collection accounts within 24 months are not allowed• Other collections (including medical) are subject to UW discretion on the fileHousing Payment ShockThis guideline is applicable to Purchase transactions only. Housing Payment Shock is calculatedas the difference between the new housing payment and existing housing payment divided byexisting housing payment times 100. Existing housing payment must be documented.Loan ScenarioMaximum HousingPayment Shock640 43NASubordinate FinancingLTV / CLTVNot allowedLoan Purpose LTV CLTVPurchase 100% NARate & Term Refinance 100% NAMaximum Loan Amount • $417,000 or maximum county limitMaximum Number ofProperties Financed byborrowerPITI Reserves• 1 (Subject property only)3 months’ reserves, excluding Gift Funds, required for First Time Home Buyer if HousingPayment Shock > 20% and FICO < 680 and DTI Back Ratio is > 43Maximum DTI RatiosLoan ScenarioMax. FrontRatioMax. BackRatioFICO => 640 and Housing Payment Shock 680 and Housing Payment Shock > 20% 36 50Note: When a non-occupying co-applicant is used to qualify the borrower:• DTI Back Ratio calculated without using non-occupying applicant's income must not exceed60.26

Flip WaiverPermitting under following conditions:• A property inspection report ordered by SWMC is must. If the borrower chooses to obtainone, SWMC can utilize such borrower-ordered inspection report.• Prior transfers will be carefully reviewed to ensure the values of the transfers represent abenefit to the borrower. The transfers should be arm’s length and not flipped to set falsevalue trends.• A second (conventional) appraisal may be required and ordered by SWMC, if the sale priceof the property is 20% or more than the seller’s acquisition cost.27