Franklin American Mortgage Company (FAMC) is a lender approved by the Department of Housing & Urban Development (HUD), as well as the Department Of Veterans Affairs (VA), and is an approved seller servicer with Federal Home Loan Mortgage Corporation (Freddie Mac or FHLMC), the Federal National Mortgage Association (Fannie Mae or FNMA), and the Government National Mortgage Association (Ginnie Mae or GNMA).

Equal Housing Lender; Franklin American Mortgage Company Inc. 501 Corporate Centre Drive, Suite 400 Franklin, TN 37067; California: Licensed by the Department of Corporations, under the California Residential Mortgage Lending Act, Georgia: Residential Mortgage Licensee, Illinois: Residential Mortgage Licensee, Kansas: Licensed Mortgage Company, Mississippi: Supervised Mortgage Company, Missouri: Residential Mortgage Licensee, Pennsylvania: Licensed by Department of Banking. For mortgage banking professionals only; not authorized for distribution to consumers.

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FRANKLIN AMERICAN MORTGAGE COMPANY

CONVENTIONAL CONFORMING LOAN PROGRAMS

F I X E D R A T E P R O D U C T S F I X E D R A T E P R O D U C T SLOAN

PARAMETERSFIXED RATE

(10, 15, 20, 25 & 30-YEAR AMORTIZATION)FANNIE FLEX 100 PROGRAM

(15 & 30-YEAR AMORTIZATION)FREDDIE MAC ALT 100(15 & 30-YEAR AMORTIZATION)

FANNIE FLEX 97(15 & 30-YEAR AMORTIZATION)

FREDDIE ALT 97(15 & 30-YEAR AMORTIZATION)

RESIDENCE(SFR, PUD, CONDO)

PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT PURCHASE REFINANCE

NO CASH OUTREFINANCE

CASH OUT PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT PURCHASE REFINANCE

NO CASH OUTREFINANCE

CASH OUT PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT

OWNER OCCUPIED

95% LTV(1–2 UNITS)

80% LTV(3–4 UNITS)

95% LTV(1–2 UNITS)

80% LTV(3–4 UNITS)

90% LTV(1–2 UNITS)

75% LTV(3–4 UNITS)

100% LTV(1 UNIT)

100% LTV(1 UNIT) N/A 100% LTV

(1 UNIT) N/A N/A 97% LTV(1 UNIT)

97% LTV(1 UNIT) N/A 97% LTV

(1 UNIT) N/A N/A

NON-OWNEROCCUPIED

90% LTV(1–2 UNITS)

75% LTV(3–4 UNITS)

90% LTV(1–2 UNITS)

75% LTV(3–4 UNITS)

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

2ND/VACATIONHOMES

95% LTV(1 UNIT)

95% LTV(1 UNIT)

90% LTV(1 UNIT) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

LOAN LIMITS: $359,650 MAX LOAN AMOUNT (1 UNIT) $460,400 MAX LOAN AMOUNT (2 UNITS) $556,500 MAX LOAN AMOUNT (3 UNITS) $691,600 MAX LOAN AMOUNT (4 UNITS)

$359,650 MAX LOAN AMOUNT $359,650 MAX LOAN AMOUNT $359,650 MAX LOAN AMOUNT $359,650 MAX LOAN AMOUNT

SUBORDINATE1 FINANCING

PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT PURCHASE REFINANCE

NO CASH OUTREFINANCE

CASH OUT PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT PURCHASE REFINANCE

NO CASH OUTREFINANCE

CASH OUT PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT

OWNER OCCUPIED

95% CLTV100% HCLTV2

(1–2 UNITS)

80% CLTV85% HCLTV

(3–4 UNITS)

95% CLTV100% HCLTV2

(1–2 UNITS)

80% CLTV85% HCLTV

(3–4 UNITS)

90% CLTV95% HCLTV

(1–2 UNITS)

75% CLTV80% HCLTV

(3–4 UNITS)

100% CLTV100% HCLTV3

(1 UNIT)

100% CLTV100% HCLTV3

(1 UNIT)N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

NON-OWNEROCCUPIED

90% CLTV95% HCLTV2

(1–2 UNITS)

75% CLTV80% HCLTV

(3–4 UNITS)

90% CLTV95% HCLTV2

(1–2 UNITS)

75% CLTV80% HCLTV

(3–4 UNITS)

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

2ND/VACATIONHOMES

95% CLTV100% HCLTV2

(1 UNIT)

95% CLTV100% HCLTV2

(1 UNIT)

90% CLTV95% HCLTV

(1 UNIT)N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

MORTGAGE INSURANCE

> 20-YEAR TERM

LTV ANNUAL COVERAGE90.01 – 95.00 30%85.01 – 90.00 25%80.01 – 85.00 12%

≤ 20-YEAR TERM

LTV ANNUAL COVERAGE90.01 – 95.00 25%85.01 – 90.00 12%80.01 – 85.00 6%

ANNUAL % COVERAGE – 35%REGARDLESS OF FINDINGS

ANNUAL % COVERAGE – 35%REGARDLESS OF FINDINGS

ANNUAL % COVERAGE – 35%REGARDLESS OF FINDINGS

ANNUAL % COVERAGE – 35%REGARDLESS OF FINDINGSACCEPTABLE MONTHLY

PREMIUM PLANS

QUALIFYINGRATIOS

AS DETERMINED BY DO/LP AS DETERMINED BY DO AS DETERMINED BY LP AS DETERMINED BY DO AS DETERMINED BY LP

CREDIT SCORES AS DETERMINED BY DO/LP AS DETERMINED BY DO AS DETERMINED BY LP AS DETERMINED BY DO AS DETERMINED BY LP

AUTOMATEDUNDERWRITING

DO/LP DO ONLY LP ONLY DO ONLY LP ONLY

RESERVES 1 UNIT 2–4 UNITS

AS DETERMINEDBY DO/LP 6-MONTHS PITI

6-MONTHS PITI 6-MONTHS PITI

AS DETERMINEDBY DO/LP N/A

AS DETERMINED BY DO AS DETERMINED BY LP AS DETERMINED BY DO AS DETERMINED BY LP

OWNEROCCUPIED

NON-OWNEROCCUPIED

2ND/VACATIONHOMES

APPRAISALS AS DETERMINED BY DO/LP AS DETERMINED BY DO AS DETERMINED BY LP AS DETERMINED BY DO AS DETERMINED BY LPTEMPORARYBUYDOWNS

ELIGIBLE N/A N/A N/A N/A

11 HCLTV IS HELOC CLTV. IF THE SECONDARY FINANCING IS A HELOC, THE LOAN AMOUNT PLUS THE DRAW AMOUNT CANNOT EXCEED THE CLTV AND THE LOAN AMOUNT PLUS THE TOTAL LINE AMOUNT CANNOT EXCEED THE HCLTV

22 MAXIMUM DRAW AT CLOSING MAY NOT EXCEED 95% OF THE LESSER OF THE SALES PRICE OR APPRAISED VALUE3 FULL AMOUNT OF HELOC MAY BE DRAWN AT CLOSING

FRANKLIN AMERICAN MORTGAGE COMPANY

CONVENTIONAL CONFORMING LOAN PROGRAMS

F I X E D R A T E P R O D U C T S C O N T I N U E DLOAN

PARAMETERSSTATED INCOME FIXED

(15 & 30-YEAR AMORTIZATION)FANNIE MAE EXPANDED APPROVAL (EA I & II)

(15 & 30-YEAR AMORTIZATION)FREDDIE MAC A-MINUS

(10, 15, 20, 25 & 30-YEAR AMORTIZATION)

RESIDENCE(SFR, PUD, CONDO)

PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT PURCHASE REFINANCE

NO CASH OUTREFINANCE

CASH OUT PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT

OWNER OCCUPIED

80% LTV(1 UNIT)

80% LTV(1 UNIT) N/A

100% LTV(1 UNIT)

95% LTV(2 UNITS)

100% LTV(1 UNIT)

95% LTV(2 UNITS)

90% LTV(1–2 UNITS)2

95% LTV(1–2 UNITS)

80% LTV(3–4 UNITS)

95% LTV(1–2 UNITS)

80% LTV(3–4 UNITS)

90% LTV(1–2 UNITS)

75% LTV(3–4 UNITS)

NON-OWNEROCCUPIED N/A N/A N/A N/A N/A N/A N/A N/A N/A

2ND/VACATIONHOMES N/A N/A N/A 95% LTV

(1 UNIT)95% LTV

(1 UNIT)90% LTV

(1 UNIT)95% LTV

(1 UNIT)95% LTV

(1 UNIT)90% LTV

(1 UNIT)

LOAN LIMITS: $359,650 MAX LOAN AMOUNT (1 UNIT) $359,650 MAX LOAN AMOUNT (1 UNIT)$460,400 MAX LOAN AMOUNT (2 UNITS)

$359,650 MAX LOAN AMOUNT (1 UNIT) $460,400 MAX LOAN AMOUNT (2 UNITS) $556,500 MAX LOAN AMOUNT (3 UNITS) $691,600 MAX LOAN AMOUNT (4 UNITS)

SUBORDINATE1 FINANCING

PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT PURCHASE REFINANCE

NO CASH OUTREFINANCE

CASH OUT PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT

OWNER OCCUPIED

85% CLTV85% HCLTV

(1 UNIT)

85% CLTV85% HCLTV

(1 UNIT)N/A

100% CLTV2

100% HCLTV(1 UNIT)

95% CLTV95% HCLTV

(2 UNITS)

100% CLTV2

100% HCLTV(1 UNIT)

95% CLTV95% HCLTV

(2 UNITS)

90% CLTV2

90% HCLTV(1–2 UNITS)

95% CLTV3

100% HCLTV(1–2 UNITS)

80% CLTV85% HCLTV

(3–4 UNITS)

95% CLTV3

100% HCLTV(1–2 UNITS)

80% CLTV85% HCLTV

(3–4 UNITS)

90% CLTV95% HCLTV

(1–2 UNITS)

75% CLTV80% HCLTV

(3–4 UNITS)

NON-OWNEROCCUPIED N/A N/A N/A N/A N/A N/A N/A N/A N/A

2ND/VACATIONHOMES N/A N/A N/A

95% CLTV95% HCLTV

(1 UNIT)

95% CLTV95% HCLTV

(1 UNIT)

90% CLTV90% HCLTV

(1 UNIT)

95% CLTV3

100% HCLTV(1 UNIT)

95% CLTV3

100% HCLTV(1 UNIT)

90% CLTV95% HCLTV

(1 UNIT)

MORTGAGE INSURANCE

N/A

30-YEAR TERMLTV ANNUAL COVERAGE

95.01 – 100.00 35%90.01 – 95.00 30%85.01 – 90.00 25%80.01 – 85.00 12%

15-YEAR TERMLTV ANNUAL COVERAGE

95.01 – 100.00 35%90.01 – 95.00 25%85.01 – 90.00 12%80.01 – 85.00 6%

> 20-YEAR TERMLTV ANNUAL COVERAGE

90.01 – 95.00 30%

85.01 – 90.00 25%

80.01 – 85.00 12%≤ 20-YEAR TERM

LTV ANNUAL COVERAGE90.01 – 95.00 25%

85.01 – 90.00 12%

80.01 – 85.00 6%

ACCEPTABLE MONTHLYPREMIUM PLANS

QUALIFYINGRATIOS

36% / 40% RATIOS THAT PROVIDE AN EA LEVEL I OR LEVEL II APPROVAL RATING FROM DO AS DETERMINED BY LP

CREDIT SCORES MINIMUM 715 AS DETERMINED BY DO AS DETERMINED BY LP

AUTOMATEDUNDERWRITING

MANUAL UNDERWRITING ONLY DO ONLY LP ONLY

RESERVES 6 MONTHS PITI AS DETERMINED BY DO AS DETERMINED BY LP

APPRAISALS 2055 INTERIOR/EXTERIOR AS DETERMINED BY DO AS DETERMINED BY LP

TEMPORARYBUYDOWNS

N/A ELIGIBLE ELIGIBLE

CONVENTIONAL CONFORMING LOAN PROGRAMS

A F F O R D A B L E H O U S I N G P R O D U C T SLOAN

PARAMETERS

COMMUNITY HOMEBUYERS 95% &3/2 95% PROGRAM4

(30-YEAR AMORTIZATION)

COMMUNITY HOMEBUYERS FANNIE 97%4

(30-YEAR AMORTIZATION)FREDDIE AFFORDABLE GOLD 97

(30-YEAR AMORTIZATION)

RESIDENCE(SFR, PUD, CONDO)

PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT PURCHASE REFINANCE

NO CASH OUTREFINANCE

CASH OUT PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT

OWNER OCCUPIED

95% LTV(1 UNIT) N/A N/A 97% LTV

(1 UNIT) N/A N/A 97% LTV(1 UNIT) N/A N/A

NON-OWNEROCCUPIED N/A N/A N/A N/A N/A N/A N/A N/A N/A

2ND/VACATIONHOMES N/A N/A N/A N/A N/A N/A N/A N/A N/A

LOAN LIMITS: $359,650 MAX LOAN AMOUNT $359,650 MAX LOAN AMOUNT $359,650 MAX LOAN AMOUNT

SUBORDINATE1

FINANCINGPURCHASE REFINANCE

NO CASH OUTREFINANCE

CASH OUT PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT PURCHASE REFINANCE

NO CASH OUTREFINANCE

CASH OUT

OWNER OCCUPIED N/A N/A N/A N/A N/A N/A N/A N/A N/A

NON-OWNEROCCUPIED N/A N/A N/A N/A N/A N/A N/A N/A N/A

2ND/VACATIONHOMES N/A N/A N/A N/A N/A N/A N/A N/A N/A

MORTGAGE INSURANCE

> 20-YEAR TERMLTV ANNUAL COVERAGE

90.01 – 95.00 30%85.01 – 90.00 25%80.01 – 85.00 12%

≤ 20-YEAR TERMLTV ANNUAL COVERAGE

90.01 – 95.00 25%85.01 – 90.00 12%80.01 – 85.00 6%

ANNUAL % CHB COVERAGE – 35%REGARDLESS OF FINDINGS

ANNUAL % CHB COVERAGE – 35%REGARDLESS OF FINDINGS

ACCEPTABLE MONTHLYPREMIUM PLANS

QUALIFYINGRATIOS

AS DETERMINED BY DO AS DETERMINED BY DO AS DETERMINED BY LP

CREDIT SCORES AS DETERMINED BY DO AS DETERMINED BY DO AS DETERMINED BY LP

AUTOMATEDUNDERWRITING

DO ONLY DO ONLY LP ONLY

RESERVES AS DETERMINED BY DO AS DETERMINED BY DO AS DETERMINED BY LP

APPRAISALS AS DETERMINED BY DO AS DETERMINED BY DO AS DETERMINED BY LP

TEMPORARYBUYDOWNS

N/A N/A N/A

1 HCLTV IS HELOC CLTV. IF THE SECONDARY FINANCING IS A HELOC, THE LOAN AMOUNT PLUS THE DRAW AMOUNT CANNOT EXCEED THE CLTV AND THE LOAN AMOUNT PLUS THE TOTAL LINE AMOUNT CANNOT EXCEED THE HCLTV

2 CASH OUT REFINANCE NOT ALLOWED ON TWO UNITS WITH A EAII3 MAXIMUM DRAW AT CLOSING MAY NOT EXCEED 95% OF THE LESSER OF THE SALES PRICE OR APPRAISED VALUE

4 SEE THE PRODUCT DESCRIPTIONS ON OUR WEB SITE FOR EDUCATION, INCOME REQUIREMENTS HIGH-RISE (MORE THAN ONE STORY TALL) CONDOS AND OTHER ADDITIONAL INFO3 4

FRANKLIN AMERICAN MORTGAGE COMPANY

CONVENTIONAL CONFORMING LOAN PROGRAMS

A R M P R O D U C T SLOAN

PARAMETERS1-MONTH LIBOR / 6-MONTH LIBOR ARM

(30-YEAR AMORTIZATION)INTERMEDIATE 3/1, 5/1, 7/1 ARM

(30-YEAR AMORTIZATION)INTEREST ONLY INTERMEDIATE 3/1, 5/1, 7/1 ARM

(30-YEAR AMORTIZATION)

RESIDENCE(SFR, PUD, CONDO)

PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT PURCHASE REFINANCE

NO CASH OUTREFINANCE

CASH OUT PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT

OWNER OCCUPIED

95% LTV(1-4 UNITS)

95% LTV(1-4 UNITS)

75% LTV(1-4 UNITS)

95% LTV(1–2 UNITS)

80% LTV(3–4 UNITS)

95% LTV(1–2 UNITS)

80% LTV(3–4 UNITS)

90% LTV(1–2 UNITS)

70% LTV(3–4 UNITS)

90% LTV(1 UNIT)

90% LTV(1 UNIT)

70% LTV(1 UNIT)

NON-OWNEROCCUPIED N/A N/A N/A 90% LTV

(1 UNIT)90% LTV

(1 UNIT)85% LTV

(1 UNIT) N/A N/A N/A

2ND/VACATIONHOMES

80% LTV(1 UNIT)

80% LTV(1 UNIT)

90% LTV(1 UNIT)

95% LTV(1 UNIT)

95% LTV(1 UNIT)

90% LTV(1 UNIT) N/A N/A N/A

LOAN LIMITS: $359,650 MAX LOAN AMOUNT(1-4 UNITS)

$359,650 MAX LOAN AMOUNT (1 UNIT) $460,400 MAX LOAN AMOUNT (2 UNITS) $556,500 MAX LOAN AMOUNT (3 UNITS) $691,600 MAX LOAN AMOUNT (4 UNITS)

$359,650 MAX LOAN AMOUNT

SUBORDINATE1

FINANCINGPURCHASE REFINANCE

NO CASH OUTREFINANCE

CASH OUT PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT PURCHASE REFINANCE

NO CASH OUTREFINANCE

CASH OUT

OWNER OCCUPIED

95% CLTV95% HCLTV

(1-4 UNITS)

95% CLTV95% HCLTV

(1-4 UNITS)

75% CLTV75% HCLTV

(1-4 UNITS)

100% CLTV100% HCLTV2

(1 UNIT)

95% CLTV100% HCLTV3

(2 UNITS)

80% CLTV85% HCLTV

(3–4 UNITS)

100% CLTV100% HCLTV2

(1 UNIT)

95% CLTV100% HCLTV3

(2 UNITS)

80% CLTV85% HCLTV

(3–4 UNITS)

90% CLTV95% HCLTV

(1–2 UNITS)

70% CLTV75% HCLTV

(3–4 UNITS)

90% CLTV90% HCLTV

(1 UNIT)

90% CLTV90% HCLTV

(1 UNIT)N/A

NON-OWNEROCCUPIED N/A N/A N/A

90% CLTV95% HCLTV

(1 UNIT)

90% CLTV95% HCLTV

(1 UNIT)

85% CLTV90% HCLTV

(1 UNIT)N/A N/A N/A

2ND/VACATIONHOMES

90% CLTV90% HCLTV

(1 UNIT)

90% CLTV90% HCLTV

(1 UNIT)

90% CLTV90% HCLTV

(1 UNIT)

95% CLTV 100% HCLTV3

(1 UNIT)

95% CLTV 100% HCLTV3

(1 UNIT)

90% CLTV95% HCLTV

(1 UNIT)N/A N/A N/A

MORTGAGE INSURANCE

LTV ANNUAL COVERAGE

90.01 – 95.00 30%

85.01 – 90.00 25%

80.01 – 85.00 12%

LTV ANNUAL COVERAGE

90.01 – 95.00 30%

85.01 – 90.00 25%

80.01 – 85.00 12%

LTV ANNUAL COVERAGE

85.01 – 90.00 25%

80.01 – 85.00 12%ACCEPTABLE MONTHLY

PREMIUM PLANS

QUALIFYINGRATIOS

MAXIMUM 45% AS DETERMINED BY DO/LP AS DETERMINED BY DO/LP

CREDIT SCORES MINIMUM 6804 AS DETERMINED BY DO/LP AS DETERMINED BY DO/LP

AUTOMATEDUNDERWRITING

MANUAL UNDERWRITING ONLY DO/LP ONLY DO/LP ONLY

RESERVES ALL UNITS

2-MONTHS PITI

N/A

2-MONTHS PITI

1 UNIT 2–4 UNITS

AS DETERMINEDBY DO/LP 6-MONTHS PITI

6-MONTHS PITI 6-MONTHS PITI

AS DETERMINEDBY DO/LP

AS DETERMINEDBY DO/LP

AS DETERMINED BY DO/LP

OWNEROCCUPIED

NON-OWNEROCCUPIED

2ND/VACATIONHOMES

APPRAISALS 2055 INTERIOR/EXTERIOR AS DETERMINED BY DO/LP AS DETERMINED BY DO/LP

TEMPORARYBUYDOWNS

N/A ELIGIBLE N/A

SUBORDINATE FINANCING

H E L O C

CLTV/HCLTV MAXIMUM 100% DEPENDING ON CREDIT SCORE ANDQUALIFYING RATIOS

QUALIFYING RATIOS MAXIMUM 45% – 50% DEPENDING ON LTV & CREDIT SCORE

CREDIT SCORES MINIMUM 620

UNDERWRITING MANUAL UNDERWRITE ONLY

RESERVES 1ST LIEN REQUIREMENTS MUST BE MET

ELIGIBLE 1ST

LIENS

CONVENTIONAL CONFORMING FIXED RATE & ARMS RECEIVING AN APPROVE ELIGIBLE/ACCEPT THROUGH DO/LP; JUMBO FIXED RATE

AND JUMBO ARM WITH OR WITHOUT INTEREST ONLY OPTION

APPRAISALS CONFORMING 1ST LIEN – MINIMUM 2055 INT/EXTJUMBO 1ST LIEN – FULL APPRAISAL

TEMPORARYBUYDOWNS MAY BE ELIGIBLE ON 1ST LIEN IF PROGRAM PERMITS

INTRODUCTORY RATE PRIME MINUS 1% FOR THE FIRST 3 MONTHS

C L O S E D E N D S E C O N D

CLTV MAXIMUM 100% DEPENDING ON CREDIT SCORE ANDQUALIFYING RATIOS

QUALIFYING RATIOS

MAXIMUM 45% TO 50% DEPENDING ON LTV AND CREDIT SCORE

CREDIT SCORES MINIMUM 620

UNDERWRITING MANUAL UNDERWRITE ONLY

RESERVES 1ST LIEN REQUIREMENTS MUST BE MET

ELIGIBLE 1ST

LIENS

CONVENTIONAL CONFORMING FIXED RATE & ARMS RECEIVING AN APPROVE ELIGIBLE/ACCEPT THROUGH DO/LP; JUMBO FIXED RATE

AND JUMBO ARM WITH OR WITHOUT INTEREST ONLY OPTION

APPRAISALS CONFORMING 1ST LIEN – MINIMUM 2055 INT/EXTJUMBO 1ST LIEN – FULL APPRAISAL

TEMPORARY BUYDOWNS MAY BE ELIGIBLE ON 1ST LIEN IF PROGRAM PERMITS

1 HCLTV IS HELOC CLTV. IF THE SECONDARY FINANCING IS A HELOC, THE LOAN AMOUNT PLUS THE DRAW AMOUNT CANNOT EXCEED THE CLTV AND THE LOAN AMOUNT PLUS THE TOTAL LINE AMOUNT CANNOT EXCEED THE HCLTV

2 EA II NOT ALLOWED ON CASH OUT REFINANCE OR CLTV/HCLTV > 95%3 MAXIMUM DRAW AT CLOSING MAY NOT EXCEED 95% OF THE LINE AMOUNT

4 CERTAIN LTV/CLTV/HCLTVS REQUIRE HIGHER CREDIT SCORES – SEE OUR WEB SITE FOR PRODUCT DESCRIPTIONS5 6

FRANKLIN AMERICAN MORTGAGE COMPANY

1 HCLTV IS HELOC CLTV. IF THE SECONDARY FINANCING IS A HELOC, THE LOAN AMOUNT PLUS THE DRAW AMOUNT CANNOT EXCEED THE CLTV AND THE LOAN AMOUNT PLUS THE TOTAL LINE AMOUNT CANNOT EXCEED THE HCLTV

2 REDUCE LTV/CLTV/HCLTV BY 5% FOR 2 UNITS3 FULL AMOUNT OF HELOC MAY BE DRAWN AT CLOSING

4 MAXIMUM DRAW AT CLOSING MAY NOT EXCEED 95% OF THE LESSER OF THE SALES PRICE OR APPRAISED VALUE5 HIGHER LOAN AMOUNTS AVAILABLE. CONTACT YOUR FAMC ACCOUNT EXECUTIVE FOR ADDITIONAL INFORMATION6 CERTAIN LTV/CLTV/HCLTVS REQUIRE HIGHER CREDIT SCORES – SEE OUR WEB SITE FOR PRODUCT DESCRIPTIONS

7 8

NON-CONFORMING LOAN PROGRAMS

F I X E D R A T E P R O D U C T S

LOAN PARAMETERS

JUMBO FIXED RATE (15 & 30-YEAR AMORTIZATION)

STATED INCOME FIXED(15 & 30-YEAR AMORTIZATION)

RESIDENCE(SFR, PUD, CONDO)

PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT PURCHASE REFINANCE

NO CASH OUTREFINANCE

CASH OUT

OWNER OCCUPIED

95% LTV TO $400K90% LTV TO $500K85% LTV TO $650K

(1–2 UNITS)

95% LTV TO $400K90% LTV TO $500K85% LTV TO $650K

(1–2 UNITS)

80% LTV TO $400K2

75% LTV TO $650K(1–2 UNITS)

80% LTV TO $400K75% LTV TO $650K

(1 UNIT)

80% LTV TO $400K75% LTV TO $650K

(1 UNIT) N/A

NON-OWNEROCCUPIED N/A N/A N/A N/A N/A N/A

2ND/VACATIONHOMES

90% LTV TO $400K80% LTV TO $500K80% LTV TO $650K

(1 UNIT)

90% LTV TO $400K80% LTV TO $500K80% LTV TO $650K

(1 UNIT)

70% LTV TO $500K(1 UNIT) N/A N/A N/A

LOAN LIMITS: $650K MAX LOAN AMOUNT $650K MAX LOAN AMOUNT

SUBORDINATE1

FINANCING PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT PURCHASE REFINANCE

NO CASH OUTREFINANCE

CASH OUT

OWNER OCCUPIED

95% CLTV TO $650K2

95% HCLTV TO $650K2

(1–2 UNITS)

95% CLTV TO $650K2

95% HCLTV TO $650K2

(1–2 UNITS)

80% CLTV TO $400K2

80% HCLTV TO $400K2

(1–2 UNITS)

85% CLTV TO $400K85% HCLTV TO $400K

(1–2 UNITS)

85% CLTV TO $400K85% HCLTV TO $400K

(1–2 UNITS)N/A

NON-OWNEROCCUPIED N/A N/A N/A N/A N/A N/A

2ND/VACATIONHOMES

90% CLTV TO $650K90% HCLTV TO $650K

(1 UNIT)

90% CLTV TO $650K90% HCLTV TO $650K

(1 UNIT)

70% CLTV TO $500K70% HCLTV TO $500K

(1 UNIT)N/A N/A N/A

MORTGAGE INSURANCE

30-YEAR TERMLTV ANNUAL COVERAGE

90.01 – 95.00 30%85.01 – 90.00 25%80.01 – 85.00 12%

15-YEAR TERMLTV ANNUAL COVERAGE

90.01 – 95.00 25%85.01 – 90.00 12%80.01 – 85.00 6%

N/AACCEPTABLE MONTHLY

PREMIUM PLANS

QUALIFYINGRATIOS MAXIMUM 38 TO 45% DEPENDING ON LTV & CREDIT SCORE MAXIMUM 36% / 40%

CREDIT SCORES MINIMUM 6206 MINIMUM 715

AUTOMATEDUNDERWRITING

MANUAL ONLYDO/LP FOR DOCUMENTATION LEVEL ONLY; SEE PRODUCT DESCRIPTION MANUAL ONLY

RESERVES 2 MONTHS PITI 6 MONTHS PITI

APPRAISALS 1004 UP TO $650K 1004 UP TO $650K

TEMPORARYBUYDOWNS ELIGIBLE N/A

NON-CONFORMING LOAN PROGRAMS

A R M P R O D U C T S

LOAN PARAMETERS

1-MONTH LIBOR6-MONTH LIBOR ARM

(30-YEAR AMORTIZATION)

INTERMEDIATE ARM 3/1, 5/1, 7/1 ARM(30-YEAR AMORTIZATION)

INTEREST ONLY INTERMEDIATE3/1, 5/1, 7/1 ARM

(30-YEAR AMORTIZATION)

RESIDENCE(SFR, PUD, CONDO)

PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT PURCHASE REFINANCE

NO CASH OUTREFINANCE

CASH OUT PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT

OWNER OCCUPIED

95% LTV TO $400K90% LTV TO $650K

(1-4 UNITS)

95% LTV TO $400K90% LTV TO $650K

(1-4 UNITS)

75% LTV TO $400K70% LTV TO $650K

(1-4 UNITS)

95% LTV TO $400K2

90% LTV TO $500K80% LTV TO $650K

(1–2 UNITS)

95% LTV TO $400K2

90% LTV TO $500K80% LTV TO $650K

(1–2 UNITS)

80% LTV TO $400K2

70% LTV TO $500K65% LTV TO $650K

(1–2 UNITS)

95% LTV TO $400K2

90% LTV TO $500K80% LTV TO $650K

(1–2 UNITS)

95% LTV TO $400K2

90% LTV TO $500K80% LTV TO $650K

(1–2 UNITS)

80% LTV TO $400K70% LTV TO $500K65% LTV TO $650K

(1–2 UNITS)

NON-OWNEROCCUPIED N/A N/A N/A N/A N/A N/A N/A N/A N/A

2ND/VACATIONHOMES

80% LTV TO $525K75% LTV TO $650K

(1 UNIT)

80% LTV TO $525K75% LTV TO $650K

(1 UNIT)

90% LTV TO $425K85% LTV TO $650K

(1 UNIT)

85% LTV TO $400K80% LTV TO $500K70% LTV TO $650K

(1 UNIT)

85% LTV TO $400K80% LTV TO $500K70% LTV TO $650K

(1 UNIT)

70% LTV TO $400K65% LTV TO $500K

(1 UNIT)

85% LTV TO $400K80% LTV TO $500K70% LTV TO $650K

(1 UNIT)

85% LTV TO $400K80% LTV TO $500K70% LTV TO $650K

(1 UNIT)

70% LTV TO $400K65% LTV TO $650K

(1 UNIT)

LOAN LIMITS: $650K MAX LOAN AMOUNT 5 $650K MAX LOAN AMOUNT 5 $650K MAX LOAN AMOUNT 5

SUBORDINATE1

FINANCING PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT PURCHASE REFINANCE

NO CASH OUTREFINANCE

CASH OUT PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT

OWNER OCCUPIED

95% CLTV 95% HCLTV TO $400K(1-4 UNITS)

95% CLTV 95% HCLTV TO $400K(1-4 UNITS)

75% CLTV 75% HCLTV TO $650K(1-4 UNITS)

100% CLTV100% HCLTV3

TO $500K(1 UNIT)

95% CLTV95% HCLTV4

TO $500K(2 UNITS)

100% CLTV100% HCLTV3

TO $500K(1 UNIT)

95% CLTV95% HCLTV4

TO $500K(2 UNITS)

80% CLTV80% HCLTVTO $400K(1–2 UNITS)

100% CLTV100% HCLTV3

TO $500K(1 UNIT)

95% CLTV95% HCLTV4

TO $500K(2 UNITS)

100% CLTV100% HCLTV3

TO $500K(1 UNIT)

95% CLTV95% HCLTV4

TO $500K(2 UNITS)

80% CLTV80% HCLTV TO $400K(1–2 UNITS)

NON-OWNEROCCUPIED N/A N/A N/A N/A N/A N/A N/A N/A N/A

2ND/VACATIONHOMES

90% CLTV 90% HCLTV TO $650K(1–2 UNITS)

90% CLTV 90% HCLTV TO $650K(1–2 UNITS)

90% CLTV 90% HCLTV TO $650K(1–2 UNITS)

85% CLTV85% HCLTVTO $400K

(1 UNIT)

85% CLTV85% HCLTVTO $400K

(1 UNIT)

70% CLTV70% HCLTVTO $400K

(1 UNIT)

85% CLTV85% HCLTVTO $400K(1–2 UNITS)

85% CLTV85% HCLTVTO $400K(1–2 UNITS)

70% CLTV70% HCLTV TO $400K(1–2 UNITS)

MORTGAGE INSURANCE

LTV ANNUAL COVERAGE

90.01 – 95.00 30%

85.01 – 90.00 25%

80.01 – 85.00 12%

LTV ANNUAL COVERAGE

90.01 – 95.00 30%

85.01 – 90.00 25%

80.01 – 85.00 12%

LTV ANNUAL COVERAGE

90.01 – 95.00 30%

85.01 – 90.00 25%

80.01 – 85.00 12%

ACCEPTABLE MONTHLYPREMIUM PLANS

QUALIFYINGRATIOS MAXIMUM 45% MAXIMUM 33% / 38% MAXIMUM 33% / 38%

CREDIT SCORES MINIMUM 6806 MINIMUM 6206 MINIMUM 6806

AUTOMATEDUNDERWRITING MANUAL ONLY MANUAL ONLY MANUAL ONLY

RESERVES ALL UNITS

2-MONTHS PITI

N/A

2-MONTHS PITI

1 UNIT 2–4 UNITS

2-MONTHS PITI 6-MONTHS PITI

N/A N/A

6-MONTHS PITI N/A

1 UNIT 2–4 UNITS

2-MONTHS PITI 6-MONTHS PITI

N/A N/A

6-MONTHS PITI N/A

OWNEROCCUPIED

NON-OWNEROCCUPIED

2ND/VACATIONHOMES

APPRAISALS 1004 UP TO $650K 1004 UP TO $650K 1004 UP TO $650K

TEMPORARYBUYDOWNS N/A ELIGIBLE N/A

FRANKLIN AMERICAN MORTGAGE COMPANY

GOVERNMENT LOAN PROGRAMS

F H A F I X E D R A T E P R O D U C T SLOAN

PARAMETERS FHA FIXED (15, 20, 25 & 30-YEAR AMORTIZATION)

RESIDENCE(SFR, PUD, CONDO)

PURCHASE REFINANCE1

NO CASH OUTREFINANCE2

CASH OUTSTREAMLINE REFINANCE3

W/O APPRAISALNO CASH OUT

STREAMLINE REFINANCE4

W/ APPRAISALNO CASH OUT

OWNER OCCUPIED

LTV CALCULATIONHIGH CLOSING

COST STATES98.75% + UFMIP

(AV/SP ≤ $50K)

97.75% + UFMIP(AV/SP > $50K)

LOW CLOSINGCOST STATES

98.75% + UFMIP(AV/SP ≤ $50K)

97.65% + UFMIP(AV/SP > $50K ≤ $125K)

97.15% + UFMIP(AV/SP > $125K)

LESSER OF: LTV CALCULATION

(Same as purchase calculation)

OR EXISTING LIENS (including any purchase money 2nd mortgage & any junior liens > 12 months) + ACC + PREPAIDS + DISCOUNT PTS. – MIP REFUND (if any) + UFMIP (SEE REFI WORKSHEET2

FOR ADDITIONAL CALCULATIONS IF OWNED < ONE YEAR)

OWNED ≥ ONE YEARAVx

85%+

UFMIPOWNED < ONE YEAR

SPx

85%+

UFMIP

LESSER OF: ORIGINAL PRINCIPAL BALANCE FROM REFI AUTHORIZATION + NEW UFMIP

OR EXISTING 1ST LIEN + ACC + PREPAIDS + DISCOUNT PTS. – MIP REFUND (if any) + UFMIP

LESSER OF:HIGH CLOSING

COST STATES98.75% + UFMIP

(AV/SP ≤ $50K)

97.75% + UFMIP(AV/SP > $50K)

LOW CLOSINGCOST STATES

98.75% + UFMIP(AV/SP ≤ $50K)

97.65% + UFMIP(AV/SP > $50K ≤ $125K)

97.15% + UFMIP(AV/SP > $125K)

OR EXISTING 1ST LIEN + ACC + PREPAIDS + DISCOUNT PTS – MIP REFUND (if any) + UFMIP

NON-OWNEROCCUPIED N/A N/A N/A

OUTSTANDING PRINCIPAL BALANCE – MIP REFUND (IF ANY) + UFMIP

N/A

2ND/VACATION HOMES N/A N/A N/A N/A N/ALOAN LIMITS: PLEASE CHECK THE FHA WEB SITE FOR LOAN LIMITS: https://entp.hud.gov/idapp/html/hicostlook.cfm (UFMIP MAY BE ADDED)

SUBORDINATEFINANCING

PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT

STREAMLINE REFINANCE W/O APPRAISAL

NO CASH OUT

STREAMLINE REFINANCE W/O APPRAISAL

NO CASH OUTOWNER

OCCUPIED PLEASE REFER TO HUD HANDBOOK 4155.1 (REV. 5)NON-OWNER

OCCUPIED N/A N/A N/A N/A N/A

2ND/VACATION HOMES N/A N/A N/A N/A N/A

MORTGAGE INSURANCE

LOAN TERM > 15 YEARSUFMIP LTV MONTHLY MIP YEARS

1.500% > 95% .500% *1.500% 90.00% – 95.00% .500% *1.500% ≤ 89.99% .500% *

LOAN TERM ≤ 15 YEARSUFMIP LTV MONTHLY MIP YEARS

1.500% > 95% .250% *1.500% 90.00% – 95.00% .250% *1.500% ≤ 89.99% N/A N/A

QUALIFYINGRATIOS

29/41 OR AS DETERMINED BY UNDERWRITER

CREDIT SCORES AS DETERMINED BY UNDERWRITER

AUTOMATEDUNDERWRITING

DO/LP DO/LP DO/LP MANUAL ONLY MANUAL ONLY

RESERVES 3 MONTHS PITI(3–4 UNITS ONLY) N/A N/A N/A N/A

APPRAISALS FULL FHA APPRAISAL REQUIRED FULL FHA APPRAISAL REQUIRED FULL FHA APPRAISAL REQUIRED N/A FULL FHA APPRAISAL REQUIRED

TEMPORARYBUYDOWNS

2–1 OR 1–0(20, 25 & 30-YEARPURCHASE ONLY)

N/A N/A N/A N/A

1 REFINANCE WORKSHEET: HTTP://WWW.HUD.GOV/OFFICES/HSG/SFH/CIRC/DEN/WSHEET1.DOC 2 REFINANCE WORKSHEET: HTTP://WWW.HUD.GOV/OFFICES/HSG/SFH/CIRC/DEN/WSHEET2.DOC

GOVERNMENT LOAN PROGRAMS

F H A A R M P R O D U C T SLOAN

PARAMETERS FHA 1-YEAR, 3/1 & 5/1 ARM (30-YEAR AMORTIZATION)

RESIDENCE(SFR, PUD, CONDO)

PURCHASE REFINANCE1

NO CASH OUTREFINANCE2

CASH OUTSTREAMLINE REFINANCE3

W/O APPRAISALNO CASH OUT

STREAMLINE REFINANCE4

W/ APPRAISALNO CASH OUT

OWNER OCCUPIED

LTV CALCULATIONHIGH CLOSING

COST STATES98.75% + UFMIP

(AV/SP ≤ $50K)

97.75% + UFMIP(AV/SP > $50K)

LOW CLOSINGCOST STATES

98.75% + UFMIP(AV/SP ≤ $50K)

97.65% + UFMIP(AV/SP > $50K ≤ $125K)

97.15% + UFMIP(AV/SP > $125K)

LESSER OF: LTV CALCULATION

(Same as purchase calculation)

OR EXISTING LIENS (including any purchase money 2nd mortgage & any junior liens > 12 months) + ACC + PREPAIDS + DISCOUNT PTS. – MIP REFUND (if any) + UFMIP (SEE REFI WORKSHEET2

FOR ADDITIONAL CALCULATIONS IF OWNED < ONE YEAR)

OWNED ≥ ONE YEARAVx

85%+

UFMIPOWNED < ONE YEAR

SPx

85%+

UFMIP

LESSER OF: ORIGINAL PRINCIPAL BALANCE FROM REFI AUTHORIZATION + NEW UFMIP

OR EXISTING 1ST LIEN + ACC + PREPAIDS + DISCOUNT PTS. – MIP REFUND (if any) + UFMIP

LESSER OF:HIGH CLOSING

COST STATES98.75% + UFMIP

(AV/SP ≤ $50K)

97.75% + UFMIP(AV/SP > $50K)

LOW CLOSINGCOST STATES

98.75% + UFMIP(AV/SP ≤ $50K)

97.65% + UFMIP(AV/SP > $50K ≤ $125K)

97.15% + UFMIP(AV/SP > $125K)

OR EXISTING 1ST LIEN + ACC + PREPAIDS + DISCOUNT PTS – MIP REFUND (if any) + UFMIP

NON-OWNEROCCUPIED N/A N/A N/A N/A N/A

2ND/VACATION HOMES N/A N/A N/A N/A N/ALOAN LIMITS: PLEASE CHECK THE FHA WEB SITE FOR LOAN LIMITS: https://entp.hud.gov/idapp/html/hicostlook.cfm (UFMIP MAY BE ADDED)

SUBORDINATEFINANCING

PURCHASE REFINANCENO CASH OUT

REFINANCECASH OUT

STREAMLINE REFINANCE W/O APPRAISAL

NO CASH OUT

STREAMLINE REFINANCE W/O APPRAISAL

NO CASH OUTOWNER

OCCUPIED PLEASE REFER TO HUD HANDBOOK 4155.1 (REV. 5)NON-OWNER

OCCUPIED N/A N/A N/A N/A N/A

2ND/VACATION HOMES N/A N/A N/A N/A N/A

MORTGAGE INSURANCE

LOAN TERM > 15 YEARSUFMIP LTV MONTHLY MIP YEARS

1.500% > 95% .500% *1.500% 90.00% – 95.00% .500% *1.500% ≤ 89.99% .500% *

LOAN TERM ≤ 15 YEARSUFMIP LTV MONTHLY MIP YEARS

1.500% > 95% .250% *1.500% 90.00% – 95.00% .250% *1.500% ≤ 89.99% N/A N/A

QUALIFYINGRATIOS

29/41 OR AS DETERMINED BY UNDERWRITER

CREDIT SCORES AS DETERMINED BY UNDERWRITER

AUTOMATEDUNDERWRITING

DO/LP DO/LP DO/LP MANUAL ONLY MANUAL ONLY

RESERVES 3 MONTHS PITI(3–4 UNITS ONLY)

N/A N/A N/A N/A

APPRAISALS FULL FHA APPRAISAL REQUIRED FULL FHA APPRAISAL REQUIRED FULL FHA APPRAISAL REQUIRED N/A FULL FHA APPRAISAL REQUIRED

TEMPORARYBUYDOWNS

N/A

* YEARS WILL BE DETERMINED WHEN THE LOAN BALANCE EQUALS 78%, PROVIDED THE MORTGAGOR HAS PAID THE MORTGAGE INSURANCE PREMIUM FOR AT LEAST FIVE YEARS (SCHEDULED OR ACTUAL, REFER TO MORTGAGEE LETTER 2000-46). CONDO EXCEPTION – MONTHLY MIP REMAINS FOR THE LIFE OF THE LOAN ON CONDOS

3 REFINANCE WORKSHEET: HTTP://WWW.HUD.GOV/OFFICES/HSG/SFH/CIRC/DEN/WSHEET3.DOC 4 REFINANCE WORKSHEET: HTTP://WWW.HUD.GOV/OFFICES/HSG/SFH/CIRC/DEN/WSHEET4.DOC9 10

FRANKLIN AMERICAN MORTGAGE COMPANY

1 VA NO CASH OUT REFIS MAY ONLY REFINANCE (1) CONSTRUCTION LOANS, (2) INSTALLMENT LAND CONTRACTS AND (3) LOANS ASSUMED BY VETERANS AT INTEREST RATES HIGHER THAN THE PROPOSED REFI. ALL OTHER REFIS EXCEPT IRRRLS ARE TREATED AS “CASH OUT” WHETHER OR NOT VETERAN ACTUALLY RECEIVES CASH.

2 REFINANCE WORKSHEET: HTTP://WWW.VBA.VA.GOV/PUBS/FORMS/26-8923FILL.PDF 11 12

GOVERNMENT LOAN PROGRAMS

V A F I X E D R A T E P R O D U C T SLOAN

PARAMETERS VA FIXED (15, 20, 25 & 30-YEAR AMORTIZATION)

RESIDENCE(SFR, PUD, CONDO)

PURCHASE REFINANCE1

NO CASH OUTREFINANCE

CASH OUTINTEREST RATE REDUCTION

REFINANCING LOAN (IRRRL)2

NO CASH OUT

OWNER OCCUPIED

100% AV/SP +

FUNDING FEE

LESSER OF: APPRAISED VALUE + FUNDING FEE

OR

OUTSTANDING BALANCE + ACC (Including the funding fee) + DISCOUNT

AVx

90 %+

FUNDING FEE

OUTSTANDING BALANCE + ACC + UP TO 2 DISCOUNT POINTS + PREPAIDS + FUNDING FEE

NON-OWNEROCCUPIED N/A N/A N/A N/A

2ND/VACATIONHOMES N/A N/A N/A N/A

LOAN LIMITS: $359,650(1 UNIT , INCLUDES FUNDING FEE)

SUBORDINATEFINANCING PURCHASE REFINANCE

NO CASH OUTREFINANCE

CASH OUTINTEREST RATE REDUCTION REFINANCING LOAN (IRRRL)

NO CASH OUT

OWNER OCCUPIED SEE VA LENDER HANDBOOK SEE VA LENDER HANDBOOK SEE VA LENDER HANDBOOK SEE VA LENDER HANDBOOK

NON-OWNEROCCUPIED N/A N/A N/A N/A

2ND/VACATIONHOMES N/A N/A N/A N/A

MORTGAGE INSURANCE

REGULAR MILITARY VETERAN

DOWN PAYMENT 1ST TIME USE SUBSEQUENT USE

0% 2.15% 3.30%

5% < 10% 1.50% 1.50%

≥ 10% 1.25% 1.25%

RESERVE / GUARD VETERAN

DOWN PAYMENT 1ST TIME USE SUBSEQUENT USE

0% 2.40% 3. 30%

5% < 10% 1.75% 1.75%

≥ 10% 1.25% 1.25%

REGULAR MILITARY VETERAN

1ST TIME USE SUBSEQUENT USE

2.15% 3.30%

RESERVE / GUARD VETERAN

1ST TIME USE SUBSEQUENT USE

2.40% 3. 30%

.500 %

QUALIFYINGRATIOS 41 OR AS DETERMINED BY UNDERWRITER

CREDIT SCORES AS DETERMINED BY UNDERWRITER

AUTOMATEDUNDERWRITING DO/LP DO/LP DO/LP MANUAL ONLY

RESERVES 3-MONTHS PITI(IF USING RENTAL INCOME FROM ANOTHER PROPERTY)

6-MONTHS PITI(2–4 UNITS ONLY) N/A

APPRAISALS FULL VA APPRAISAL REQUIRED FULL VA APPRAISAL REQUIRED FULL VA APPRAISAL REQUIRED N/A

TEMPORARYBUYDOWNS 2 – 1 OR 1 – 0 (NO 15-YEAR TERM)

GOVERNMENT LOAN PROGRAMS

V A A R M P R O D U C T SLOAN

PARAMETERS VA 3/1 & 5/1 ARM (30-YEAR AMORTIZATION)

RESIDENCE(SFR, PUD, CONDO)

PURCHASE REFINANCE1

NO CASH OUTREFINANCE

CASH OUTINTEREST RATE REDUCTION

REFINANCING LOAN (IRRRL)2

NO CASH OUT

OWNER OCCUPIED

100% AV/SP +

FUNDING FEE

LESSER OF: APPRAISED VALUE + FUNDING FEE

OR

OUTSTANDING BALANCE + ACC (Including the funding fee) + DISCOUNT

AVx

90 %+

FUNDING FEE

OUTSTANDING BALANCE + ACC + UP TO 2 DISCOUNT POINTS + PREPAIDS + FUNDING FEE

NON-OWNEROCCUPIED N/A N/A N/A N/A

2ND/VACATIONHOMES N/A N/A N/A N/A

LOAN LIMITS: $359,650(1 UNIT , INCLUDES FUNDING FEE)

SUBORDINATEFINANCING PURCHASE REFINANCE

NO CASH OUTREFINANCE

CASH OUTINTEREST RATE REDUCTION REFINANCING LOAN (IRRRL)

NO CASH OUT

OWNER OCCUPIED SEE VA LENDER HANDBOOK SEE VA LENDER HANDBOOK SEE VA LENDER HANDBOOK SEE VA LENDER HANDBOOK

NON-OWNEROCCUPIED N/A N/A N/A N/A

2ND/VACATIONHOMES N/A N/A N/A N/A

MORTGAGE INSURANCE

REGULAR MILITARY VETERAN

DOWN PAYMENT 1ST TIME USE SUBSEQUENT USE

0% 2.15% 3.30%

5% < 10% 1.50% 1.50%

≥ 10% 1.25% 1.25%

RESERVE / GUARD VETERAN

DOWN PAYMENT 1ST TIME USE SUBSEQUENT USE

0% 2.40% 3. 30%

5% < 10% 1.75% 1.75%

≥ 10% 1.25% 1.25%

REGULAR MILITARY VETERAN

1ST TIME USE SUBSEQUENT USE

2.15% 3.30%

RESERVE / GUARD VETERAN

1ST TIME USE SUBSEQUENT USE

2.40% 3. 30%

.500 %

QUALIFYINGRATIOS 41 OR AS DETERMINED BY UNDERWRITER

CREDIT SCORES AS DETERMINED BY UNDERWRITER

AUTOMATEDUNDERWRITING DO/LP DO/LP DO/LP MANUAL ONLY

RESERVES 3-MONTHS PITI(IF USING RENTAL INCOME FROM ANOTHER PROPERTY)

6-MONTHS PITI(2–4 UNITS ONLY) N/A

APPRAISALS FULL VA APPRAISAL REQUIRED FULL VA APPRAISAL REQUIRED FULL VA APPRAISAL REQUIRED N/A

TEMPORARYBUYDOWNS N/A

BUSINESS CARDS GO HERE

Irving, TXFranklin, TN

About Franklin American MortgageFranklin American Mortgage Company (FAMC), headquartered in Franklin, Tennessee, was founded in 1993. We are a full-service, privately-held mortgage banking firm, licensed to provide residential mortgages throughout the United States. We provide a host of diverse, flexible mortgage packages for customers with a variety of backgrounds and needs. FAMC is committed to helping families and individuals achieve the dream of home ownership.

FAMC offers borrowers, brokers and lenders the strength and security of a forward-thinking national mortgage company. Dedicated to remaining an industry trendsetter, FAMC truly values its relationship with each customer and mortgage professional. We also make great efforts maintaining a company tradition of responsiveness and personalized service, characteristic of a much smaller organization. This philosophy has allowed FAMC to become one of the fastest growing mortgage bankers in the nation.

This growth rate has enabled Franklin American to become a six-time recipient of the Inc. 500 Award, subsequently entering the Company into the Inc. 500 Hall of Fame. Our success continues to be driven by personal service with attention to detail, innovative product offerings, technological advancements and customer oriented decision making.

FAMC Wholesale LendingAs a broker, you have many companies to choose from to service your mortgage needs. That’s why we are committed to providing service and support that is unmatched in our industry. We strive to be more than just the normal mortgage company that can offer you the best price for the day. FAMC wants to be your long term mortgage partner that offers you customized services in all aspects of your business. As one of the country’s fastest growing mortgage companies, we feel our wholesale division can offer you a complete line of products and services with 100% customer satisfaction. From our technologically advanced operation systems to our hands on sales approach, more mortgage brokers are finding out that with FAMC, it’s about more than just business - It’s About Relationships!

www.franklinamerican.com With customer service always our focus, we have designed our web site to provide brokers with the technology and services they need to make the lending process as efficient, productive and personal as possible. From easy to use menus to faster response time, our site provides all of the intangibles needed to service our customers at the highest level.

WHOLESALE OPERATION CENTERS

Online Features• Downloadable Forms

• Product Guidelines

• Daily Rate Sheets

• Online Locks & Loan Status

• QSub – Electronic File Submission

• QDocs – Online Closing Doc Preparation

• Loan Pipeline Management

• Automated Underwriting Access

• U/W Dispositions

• Easy To Navigate Tabs & Menus

• Fast Response Time & Support

• FAMC Information & News Bulletins13

PAGE INDEX

CONVENTIONAL CONFORMING FIXED RATE PRODUCTS ______________ 1 – 3 AFFORDABLE HOUSING PRODUCTS ________4 ARM PRODUCTS __________________ 5 – 6SUBORDINATE F INANCING HELOC ____________________________6 CLOSED END SECOND __________________6NON- CONFORMING FIXED RATE PRODUCTS _________________7 ARM PRODUCTS _____________________8GOVERNMENT FHA FIXED RATE PRODUCTS _____________9 FHA ARM PRODUCTS _________________ 10 VA FIXED RATE PRODUCTS _____________ 11 VA ARM PRODUCTS __________________ 12COMPANY INFORMATION ABOUT FAMC ______________________ 13 ONLINE SERVICES ___________________ 13