USDA EDGE FIXED PRODUCT

Effective Date: Description: January 28, 2013 & February 25, 2013 Fixed Rate Mortgage insured by the United States Department of Agriculture USDA Fixed Rate Fully Amortizing Mortgage 30 Year Term No Money Down No Mortgage Insurance - See Guarantee and Annual fee below No First-Time Homebuyer Requirement
Up-Front Guarantee Fee
Transaction Type Purchase Up-front Guarantee Fee Prior Up-front Guarantee Fee On/ to 10/01/2012 After 10/01/2012 2% 1.5% 2% 2%

Guarantee fee and Annual Fee:

Refinance

Annual Fee (Paid Monthly)

Transaction Type Purchase Refinance Up-front Guarantee Fee Prior Up-front Guarantee Fee On/ to 10/01/2012 After 10/01/2012 30% 30% 40% 40%

Maximum Loan Amounts The maximum loan amount is limited to the appraised value of the property plus the on Purchases: Guarantee fee and can include closing cost when the appraised value exceeds the sales price. For Refinances, see Refinance Limitations and Maximum Loan Amounts. Assumability: PrePayment Penalty: Escrow Waiver: Underwriting Method: Not Permitted None Not Permitted May follow GUS AUS decision and documentation requirements or manual underwrite. Not Permitted

Temporary Buydown:

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Qualifying Rate and Ratios: Qualify at note rate. Note: The maximum interest rate for the Rural Development Guaranteed Rural Housing Program is defined as the FNMA 90-day actual-actual yield requirements plus 60 basis points, rounded up to the nearest quarter percent. MAX 29/41% DTI - Exceptions encouraged with compensating factors and RD concurrence. Purchase Rate and Term Refinance of existing USDA loan Streamline Refinance Rural Refinance Pilot streamline Property must be located in rural area as designated by RHS - refer to htt://eligibility.sc.egov.usda.gov Allowed: Acreage, Attached, Condos, Condos - Low Rise (< 4 stories), Detached Single Family, Leashold, Mixed Use, Modular, Panelized Homes, Pre-Fab Homes, PUD, PUD-Attached, Rural, Townhomes Acreage: > 30% site value: case by case basis Condos: Complex must be FHA Approved Leasehold: must be common to area Mixed Use: 1 unit only PUDS-Attached: FNMA/FHLMC Warrantable Rural: must be residential in nature; income producing not allowed; additional restrictions may apply - contact u/w for details Note: Properties listed for sale: Refi = currently listed not available Full Doc Manual underwrite Primary Residence First-time homebuyers allowed Non-occupant coborrower not allowed Non-permanent resident alien not allowed Trailing wage earner income not allowed In order to be eligible for a Rural Development guaranteed loan, the Borrwers' adjusted household income cannot exceed the maximum allowable income limit set forth in Rural Development Instruction 1980-D 1980.348 Exhibit C (use moderate income limits). http://eligibility.sc.egov.usda.gov The borrower must not have sufficient assets to obtain other traditional conventional financing. The borrower may, however, to qualify for an FHA or VA loan. In other words, applicants may have liquid assets and be eligible to participate in the GRH Program. Those assets, however, should not be sufficient to meet the down payment and closing cost requirements associated with a conventional uninsured mortgage product (LTV 80%). This means applicants do have a choice of USDA-Guaranteed Rural Housing, FHA, VA, or a conventional mortgage product with private Page 2 of 7 mortgage insurance.

Types of Financing:

Eligible Property Types:

Documentation Type: Occupancy: Borrower Eligibility:

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Borrower Eligibility Con't: The Appraisal determines the maximum loan amount. The applicant may borrow up to 100% of the appraised value plus the Guarantee Fee Primary Income - Two year history required Two Years of tax returns will only be required for o Self-employed borrowers (In addition to P&L) o Commissioned borrowers Alimony - 12 month history, with proof of 3 years continuance Part-time, Overtime & Bonus - 12 month history Disability - Benefits letter, 3 years continuance and gross up 125% SSI benefits - Awards Letter Salary Increases - With 30 day of the first payment due date are accepted. Non-Occupant Co-Borrowers: Credit: Not Permitted

USDA Credit Standards Apply. Rural Development Guaranteed Rural Housing loans are typically underwritten to Rural Development Instruction 1980.345(d) USDA Credit Standards Apply. Rural Development Guaranteed Rural Housing loans are typically underwritten to Rural Development Instruction 1980.345(d) Credit Score: o 620 minimum FICO o No Fico - allowed with non-Traditional credit - Will have a 3 point add to pricing Late Payments: o 1x30 Permitted in last 12 months with explanations - Exceptions may be granted if your borrowers have 620 or greater middle credit scores Bankruptcy/Foreclosure: o Chapter 7 and 13 must be discharged for 3 years - Foreclosures must be completed 3 years ago Collections: o Accounts cannot have been placed in collection status within the last 12 months o Exceptions may be granted if your borrowers have 620 or greater middle credit scores Judgments: o Must be paid off for at least 12 months - Exceptions may be granted if borrowers have 620 or greater middle credit scores

Credit Score :

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Credit Con't: Debt Ratio: o The Total Debt Ratio should include revolving debt regardless of when the debt will be retired. Installment loans will only be considered if the debt will be retired in more than six months. However, if the monthly payment on the debt is substantial, the payment will also be included in long term debt. o If the borrower has co-signed a loan for another party, an acceptable 12 month history validating that the borrower is not making the payment must be provided in order to exclude the payment from the total debt. Liabilities solely in the applicant's name must always be considered in the debt ratio, regardless of who is making the monthly payment as the legal obligation resides with the applicant. o When a borrower has a delinquent student loan obligation, a satisfactory six-month repayment history must be provided. Regardless of deferment status, all student loans must have the monthly payment included in the debt ratio calculation. Verification of Rent is required with a Refer or manual underwrite: o A 24-month history of residence is required (previous housing payments is not necessarily required). Additionally, a 12-month verification of rent or mortgage with a payment rating is also required on all files when the primary wage earner has a credit score of less than 640 or a GUS Accept is not received. This may be done using a Request for Verification of Rent or Mortgage Account, or information contained on the credit report, or cancelled checks. All lates grater than 30 days must be documented with an explanation from the applicant Non-Traditional Credit: Acceptable if no credit is available and borrowers has no derogatory credit history. If no Fico score, there will be a 3 point add to fee. Requirements are as follows. Four nontraditional sources are required for applicants with no current rent or housing history. Only three nontraditional sources are required if applicants currently pay rent or housing expenses which can be documented for 12 months. All tradeline sources must be open and have a recent 12 month history. Documentation maybe canceled Checks or written verifications that include the creditors name, date the account was opened, account balance, monthly payment due, and history reported in 0x30, 0x60, 0x90 format. Subjective statements such as satisfactory or acceptable are NOT an acceptable format. Applicants may only have one 30 day late in the 12 months Payments made to relatives for credit sources are ineligible Minimum Borrower's Investment No minimum borrower investment is required
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Assets:

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Seller Contributions: Seller can pay 100% of discount points and borrower's non-recurring closing costs. Seller can provide an additional amount not to exceed 6% of the estimated reasonable value to assist the borrower's payment of buydown points, prepaid expenses and funding fee. Borrowing of Unsecured funds allowed with 660 credit score Gifts (or Grants) - A borrower can use funds obtained as a gift (or grant) to satisy part of the cash requirement for closing only if the donor is a relative, charitable organization, municipality, or nonprofit organization. A gift must be evidenced by a letter that is signed by the donor. The letter must: Specify the dollar amount of the gift and the date the funds were transferred Indicate the donor's name, address, telephone number, and relationship to the borrower, and include the donor's statement that no repayment is expected. The lender must verify that funds have been transferred to the borrower's account and show documentation of the transfer of the fit funds from the donor's account; for example, by obtaining a copy of the donor's withdrawal slip or canceled check and the borrower's deposit slip ect. When the funds are not transferred prior to settlement, the donor may give the closing agent a certified check for the amount of the gift. A couple of that check or a settlement statement showing receipt of that check will be sufficient documentation for the lender's records provided the donor is listed as the remitter. A gift or grant from a charitable organization, municipality, or nonprofit organization must be evidenced by either a copy of the letter awarding the gift or grant to the borrower or a copy of the legal agreement that specifies the terms and conditions of the gift or grant. This supporting document must include language indicating that no repayment of the gift or grant is expected and an indication of how the funds will be transferred (to the borrower, the lender, or the closing agent). The lender must include in the individual mortgage file evidence of the transfer of the funds - such as a copy of the donor's cancelled check or a settlement statement showing receipt of the check. Reserves: Limitations on other Real Estate Owned: Mortgage Insurance: Per the AU Borrower may not have any ownership in any other residential properties at time of closing unless other property is beyond a reasonable commute of current job See Guarantee and Annual fee

Gift Funds:

Properties Listed for Sale: Refinances are currently listed not allowed
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Appraiser Requirements: Must be completed by certified residential/general FHA Roster appraiser No Transferred appraisals Appraisal Requirements: One full appraisal required - Must meet HUD handbook Guidelines Rate and Term Refinance: Appraisal not required if Refi to pay off existing balance & guarantee fee Any conditions noted on an appraisal that are related to the safety or livability of the subject property must be addressed and rectified prior to loan closing. Expenses related to property inspecitions and property repairs may not be financed into the new GRH refinance loan, or escrowed for prior to closing. Termite Inspection - required in all areas Well/Septic Inspections - 100% required - Well test must be completed by state certified lab. EPA hotline 800-426-4791 Refinance Limitations and Only refinanced of prior USDA loans are allowed Maximum Loan Amounts: Cash out loans are not permitted Rate and Term Refinance: Appraisal not required if Refi to pay off existing balance and guarantee fee Income and ratios must be verified on standard USDA Streamline loans unless it qualifies for the Pilot Refinance Program below: Components of the USDA Rural Refinance Pilot Program Include: A new appraisal and additional inspections are not required Ratios are not calculated, but income verification for all adult household members is required for income eligibility determination. Household income is necessary for determining program eligibility only, not for determining repayment ability. Therefore, ratio waivers are not required. Must be in one of the following Pilot States: o AL, AZ, CA, FL, GA, IL, IN, KY, MI, MS, NV, NJ, NM, NC, OH, OR, RI, SC, & TN o Pilot States Added & Effective 2/25/2013: AK, AR, CO, ID, KS, MO, MT, ND, OK, SD, TX, UT, WA, WV, WI Borrowers must have made timely mortgage payments for the 12 month period prior to the refinance The interest rate on the new loan must be a minimum of 1.000% lower than the existing USDA loan Max new loan term is 30 years All Rural Refinance Pilot loans must be manually underwritten. GUS is not available for the Rural Refinance Pilot loans The new term of the refinance loan must be 30 years The upfront USDA guarantee fee wil be 1.50% (Will be going to 2.0% on 10/01/2012) The applicable Annual Fee will be 0.30% (will be going to 0.40% on 10/01/2012)
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Refinance Limitations and The new loan may only include the principal balance of the existing loan plus the Maximum Loan Amounts: upfront guarantee fee (accrued interest, prepaid interest, closing costs, and funds required to establish an escrow account may be financed into the new loan) No cash out is permitted Reasonable and customary closing costs and other fees may be collected from the borrower by the originating lender. However, the origination fee charged to the borrower may not exceed one percent of the total loan amount A fully executed RD Form 1980-21 Request for Single Family Housing Loan Guarantee is required Access Real Estate Lending will require all borrowers to be employed at the time of the closing on the refinance transaction or have alternate sources of income, such as: retirement income, social security income, disability income, alimony or child support 4506-T: A completed, signed, and dated IRS form 4506-T must be completed for all borrowers whose income is used to qualify for the mortgage The 4506-T must be processed and tax transcripts obtained (for each year requested) to validate against the borrower's tax returns and/or W-2 forms

Intended as a quick reference quide only and may not capture all program features or changes that may have occured. Call Access Today if you have any questions or would like to get approved for a USDA home loan - 530.897.4090

Access Real Estate Lending | 1051 Mangrove Avenue | Chico CA 95926 Office: 530.897.4090 | Fax: 530.892.2090 | www.accessloans.net
CA DRE#: 01215943 | NMLS#: 1850 | Licensed by the Department of Corporations under the California Residential Mortgage Lending Act. An Equal Housing Lender. *Info Subject to Change. Page 7 of 7