- Effective 6/17/2013 REMN Wholesale will begin accepting locks and new loan submissions for FNMA 5/1 and 7/1 LIBOR Non-Convertible ARMs. These programs are available for conforming and high balance loan amounts.
- Index – 1 Year LIBOR
- Margin – 2.25
- Caps – 5/2/5 (5.00 initial, 2.00 periodic, 5.00 life time)
- Floor – Margin
- Term – 360/360
| Transaction Type | Number of Units | Maximum LTV, CLTV, HCLTV Standard ARM | Maximum High Balance ARM |
|---|---|---|---|
| Principal Residence | |||
| Purchase & Limited cash-out Refinance | 1 | 90% | 75% |
| 2 | 75% | 65% | |
| 3-4 | 65% | 65% | |
| Cash-out Refinance | 1 | 75% | 60% |
| 2-4 | 65% | NA | |
| Second Homes | |||
| Purchase & Limited cash-out Refinance | 1 | 80% | 65% |
| Cash out Refinance | 1 | 65% | NA |
| Investment Property | |||
| Purchase | 1 | 75% | 65% |
| 2-4 | 65% | 65% | |
| Limited cash-out Refinance | 1-4 | 65% | 65% |
| Cash out Refinance | 1 | 65% | NA |
| 2-4 | 60% | NA | |
FNMA Standard 30 year ARM Plan
- 5/1 FNMA ARM plan code 2737
- 7/1 FNMA ARM plan code 2727
- Assumable – No
- Convertible – No
- Interest rounded to the nearest 1/8th
- Qualifying Rate Details
- Fully indexed rate = index + margin
- 5/1 ARM qualifies at the greater of the start rate + 2% OR the fully indexed rate
- 7/1 ARM qualifies at the start rate