1. Prime Jumbo Program
October 2017

2. Prime Jumbo Program
The Prime Jumbo Program is designed for mortgagors with excellent credit, stable income and employment histories, and fully verified income and assets. All loans will be underwritten and evaluated to determine whether the proposed loan conform to the Prime Jumbo Guidelines. This presentation is designed to provide Sellers with a high level overview of the Prime Jumbo Program and not intended to replace the PHL Seller Guide. Any discrepancies, the PHL Seller Guide prevails. The Prime Jumbo Program guidelines are intended to reference and supplement Fannie Mae’s Seller Guide. Requirements that are not specifically addressed in the Prime Jumbo Program guidelines, follow Fannie Mae guidelines. This program is being offered on a non-delegated basis only. All loans must be underwritten by Planet Home Lending.

3. Prime Jumbo Program Overview
Fixed Rate fully amortized terms:
15, 20 and 30 year
ARMs – 1 Year LIBOR and 45 day look back
5/1 ARM qualified at Note Rate + Initial Cap; 2/2/5 Caps
7/1 & 10/1 ARM qualified at Note Rate; 5/2/5 Caps
ATR/QM – loans must meet the Safe Harbor Qualified Mortgage standards and pass the points and fees test, as applicable
High-Cost Mortgages (Section 32) and Higher-Priced Mortgage Loans (HPML) are not permitted
This product is not available in West Virginia
Subordinate Financing allowed for purchase transactions only
Third party Fraud Report required on all loans

4. Prime Jumbo Program Overview continued
1 and 2 Unit Properties only
Owner Occupied, Second Home and Investment Properties
If the borrower is purchasing a new primary residence, the current primary residence is pending sale and will not close prior to the current purchase, both the current and proposed mortgage payments must be used to qualify
Minimum Loan Amount $ 424,101 (or $1 above the conforming limit)
Reduced LTV/CLTV for Condominium and High Rise Condominium
Maximum number of financed properties is limited to four (4)
Minimum of 12 months reserves is required

5. Appraisals
Two Appraisals are required for loan amounts greater than $1,500,000
A Market Condition Addendum is required on all appraisals
A 5% reduction in LTV/CLTV will be required for all properties identified to be in a declining market as designated by the appraiser
All appraisal(s) require a PHL ordered appraisal review prior to purchase
Appraisal Review final opinion of value must be within 10% (i.e. above or below) of the origination appraisal(s) or sales price

6. Assets
Full Asset documentation is required for both funds to close and reserves. For most asset types, this would include all pages of the most recent two months statements or the most recent quarterly statement. All Assets from the borrower(s) must be disclosed and verified by the Seller.
A Verification of Deposit (VOD) is not allowed.
No business account may be used to meet reserve and down payment requirements unless the borrower(s) are 100% owners of the business. A letter from the business’s accountant or cash flow analysis (Per Fannie Mae) must be obtained to confirm that the withdrawal will not negatively impact the business.

7. Credit
CREDIT PROFILE
Each Borrower’s credit profile must include a minimum of 3 open trade lines that have a 24 month history
No authorized user accounts will be used to satisfy minimum trade line requirements
Minimum Credit Risk Score of 700
All borrowers must have a credit score
All borrowers must have a social security number
CREDIT HISTORY
Current housing not reporting on credit can be considered an open trade if supported by bank records (cancelled checks/debits)
Any Borrower not employed, or employed but not using their income to qualify does not need to meet the minimum trade line requirements listed above
All trade lines with delinquency history in the past 12 months requires a written explanation
No bankruptcies, foreclosure, short-sale, deed-in-lieu or modifications are allowed within 7 years of application date
All Judgments or liens affecting title must be paid
Non-title charge-offs and collections exceeding $1,000 (individually or in aggregate) must be paid
All past due accounts must be brought current prior to closing
Borrowers with a history of collection accounts will be required to pay off derogatory accounts
Disputed accounts require a LOE completed according to Fannie Mae guidelines. An updated credit report not required.
Delinquent tax IRS payment plans are ineligible

8. Qualifying Ratios DTI Primary Residence - 43% Second Home - 40%
Investment Property - 38%
Escrow Holdbacks
Not Allowed
Escrow/Impound Account
Not Required

9. Reserves
Reserves are required on all loans. In addition to the reserves identified in the chart
below, the following requirements must be met:
First Time Homebuyers must have a minimum of 12 months reserves
2 months PITIA reserves required for each additional financed property
Occupancy
Maximum Loan Amount
Reserves
Primary Residence
$ 1,000,000
6 Months
$ 1,500,000
9 Months
$ 2,000,000
12 Months
$ 2,500,000
24 Months
Second Home
18 Months
Investment Property

10. Borrower Eligibility First Time Homebuyers
30 year fixed, 7/1 ARM, or 10/1 ARM terms only
720 Minimum FICO
Maximum loan amount $1,000,000
Owner Occupied only. Second home ineligible.
Minimum of 12 months reserves required
Non-Permanent Resident Aliens
Must have an unexpired passport from their country of citizenship containing INS form I-94 which must be stamped Employment Authorized
The borrower(s) must have a minimum of 2 years residency, with the likelihood of employment continuance for at least 2 years.
Primary residence only. Second home ineligible
A valid Visa with a minimum remaining duration of 1 year is required
Borrowers with diplomatic immunity are ineligible
75% LTV/CLTV Maximum
Single unit only
Maximum 43% DTI

11. Property Flips Property Flips
No property flipping, prior owners must have owned the property greater than 6 months (Bank owned REO are eligible and not considered a flip transaction).