Super Conforming Mortgages
Freddie Mac's super conforming mortgages are mortgages originated using higher maximum loan limits that are permitted in designated high-cost areas.
These higher loan limits are intended to provide lenders with much-needed liquidity in the highest cost areas of the country, while also lowering mortgage financing costs for borrowers located in these areas.
Make sure to check the Federal Housing Finance Agency (FHFA) conforming loan limits web page for the actual loan limits established for each designated high-cost area.
2017 Loan Limits*
|Units||Minimum/Maximum Original Loan Amount||Properties in Alaska, Hawaii, Guam and the U.S Virgin Islands|
|Minimum Loan Amount||Maximum Loan Amount*||Minimum Loan Amount||Maximum Loan Amount*|
*These are the maximum potential loan limits for designated high-cost areas. Actual loan limits are established for each county (or equivalent) and the loan limits for specific high-cost areas may be lower. The original principal balance of a mortgage must not exceed the maximum loan limit for the specific area in which the mortgaged premises is located. For specific loan limits for each high-cost area, as released by the FHFA, visit their conforming loan limits page.
Super Conforming Mortgage Requirements
|Eligible Products, Purpose and Occupancy Requirements|
- 15-, 20-, and 30-year fixed-rate mortgages, fully amortizing
- 5/1, 7/1 and 10/1 adjustable-rate mortgages (ARMs), fully amortizing
- Construction Conversion Mortgages
- Renovation Mortgages
- Purchase transactions
- No cash-out refinances
- Cash-out refinances
- 1- to 4-unit primary residences
- Second homes
- 1- to 4-unit investment properties
|Eligibility and Underwriting Requirements|
|LTV/TLTV/HTLTV Ratio Requirements
Maximum LTV/TLTV/HTLTV ratios must comply with Guide Section 4203.4 for Loan Product Advisor and manually underwritten mortgages.
|Additional Underwriting Requirements
For Loan Product Advisor Mortgages
- Loan Product Advisor® assessment required for mortgages with original loan amounts up to $1 million.
- The borrower's credit reputation is acceptable if:
- The mortgage receives a Risk Class of Accept
- The mortgage receives a Risk Class of Caution-eligible for A-minus and all requirements in Chapter 5101.9 for A-minus Mortgages are met.
- If the mortgage receives a Loan Product Advisor risk evaluation status of invalid, ineligible or incomplete, the Seller must take all steps possible in accordance with Guide Section 5101 to correct the information and resubmit the mortgage.
- Super conforming mortgages with original loan amounts of $1 million or less that have never been submitted to Loan Product Advisor are not eligible for delivery.
For non-Loan Product Advisor Mortgages
- Super conforming mortgages with original loan amounts greater than $1 million or a risk class or evaluation of invalid, ineligible, or incomplete, Caution-ineligible for A-minus must be manually underwritten according to the requirements in Guide Chapters 5100 through 5500 and 4603.
- Noncredit payment references are prohibited.
- Refer to Exhibit 25 for minimum Indicator Score requirements for manually underwritten mortgages.
|Appraisals and Collateral Documentation Requirements
- The Seller must obtain an appraisal with an interior and exterior inspection that meets Freddie Mac requirements.
- A field review is required when the LTV/TLTV/HTLTV ratios are greater than 75 percent and the value of the mortgaged premises is $1 million or greater.
- When the appraisal field review report results in a different opinion of market value, the lower of the opinion of market value from the appraisal field review report or sale price must be used to calculate the LTV/TLTV/HTLTV ratio.
- The appraiser performing the initial appraisal and the appraisal field review report must be qualified to perform appraisals without oversight or supervision by a "supervisory" appraiser.
|Mortgage Insurance (MI)
- Standard mortgage insurance is required.
- Lender-paid mortgage insurance with single premiums is permitted.
|Ineligible Products and Features
- Balloon/Reset Mortgages
- ARMs with initial periods of less than 5 years
- Renovation Mortgages with application dates prior to June 13, 2010
- Mortgages secured by manufactured homes
- Home Possible® Mortgages and any affordable mortgages, including mortgages originated under a Seller's proprietary program
- Seller-Owned Converted Mortgages
- Seller-Owned Modified Mortgages
- FHA/VA Mortgages
- Rural Housing Service Section 502 GRH Mortgages
- Section 184 Native American Mortgages
- Construction Conversion Mortgages with application dates prior to June 13, 2010
- Affordable Merit Rate® Mortgages
- Mortgages using the Home Value Models
- 40-year fixed rate mortgages
- Mortgages with custom mortgage insurance options
- Mortgages with financed mortgage insurance premiums
- Mortgages with annual or monthly lender-paid mortgage insurance premiums
- Loan Product Advisor mortgages with an original loan amount greater than $1 million
- Guarantor, Cash and MultiLender
- Bulk guarantor securities transaction capabilities.
- Best efforts commitment option is not available at this time.
- The unpaid principal balance (UPB) of all 15-, 20- and/or 30-year super conforming mortgages delivered by the Seller under fixed-rate Cash contracts during any month must not exceed the greater of (i) $2 million in aggregate, or (ii) 10 percent of the UPB of each particular mortgage product (15-, 20- and/or 30-year fixed rate) not including any refinance mortgages originated under the Home Affordable Refinance Program (HARP mortgages) with LTV ratios greater than 105 percent delivered by the Seller under fixed-rate Cash contracts during such month. Fixed rate Cash purchases that exceed this limit will be subject to an over funding delivery fee that may be adjusted after each funding month based on market conditions at that time.
- Sellers with Guarantor Master Commitments may not take out fixed-rate Cash contracts for the sale of super conforming mortgages.
- See Guide Section 6302.31(b) for special delivery instructions for super conforming mortgages.
- Super conforming mortgages have the applicable current Guide Exhibit 19 delivery fees, plus unique super conforming mortgage postsettlement delivery fees.
|Pooling and Disclosure Requirements
- See Guide Section 6202.3 for pooling requirements for fixed-rate super conforming mortgages sold under the Fixed-rate Guarantor and MultiLender Swap programs.
- For additional details on requirements for super conforming mortgages refer to Guide Chapter 4603
- Where there are no specific requirements for super conforming mortgages, the minimum requirements in our Guide apply.
- If there is a conflict between any of the requirements for super conforming mortgages and any other Guide-permitted product or offering, the more restrictive requirement(s) apply.
The information in this document is not a replacement or substitute for information found in the Single-Family Seller/Servicer Guide and/or the terms of your Master Agreement and/or Master Commitment.