Connecticut Avenue Securities Investor Presentation

Standard Selling Guide vs HomeReady Product feature Maximum LTV (Refer to Fannie Mae Eligibility Matrix for full list) Maximum DTI Rental income from subject property and boarder income Non-occupant co-borrower (such as a parent) Mortgage Insurance Gifts, grants, Community Seconds, cash-on-hand and sweat equity as a source of funds for down payment and closing costs Standard guide 50% 95% LTV for 1-unit properties, principal residence Up to 97% LTV allowed for First-Time Homebuyers. LTV >95% must be underwritten through DU LCOR transactions LTV>95-97% must be owned or securitized by Fannie Mae. Documented rental income from subject property is allowed for 2-4 unit properties and investment properties Boarder income generally not allowed Permitted, with criteria for amount of down payment and DTI required from occupant borrower Required for LTV > 80% Reduced MI coverage allowed for approved lenders with pricing adjustment Gifts, grants, and Community Seconds are allowed as sources of down payment and closing costs with appropriate documentation Cash-on-hand and sweat equity generally not allowed HomeReady - Purchase and LCOR* Only Same as standard Same as standard Documented rental income not eligible for investment properties Rental income from a 1-unit property with accessory unit permitted Documented boarder income (e.g., rent paid by roommate) may be allowed if it meets guidelines. Same as standard MI coverage percentage reduced for loans with LTV >90% Same as standard, plus: Cash-on-hand may be allowed with appropriate documentation Minimum borrower contribution required from borrower's own funds (whether or not gifts, grants etc, are also present) Non-traditional credit Manufactured housing up to 95% and HomeStyle® Renovation (approved lenders) up to 95% LTV<=80%: 0% LTV >80%: 1-unit property principal residence: 0% 2-4 unit property: 5% Allowed with appropriate documentation May be allowed up to 95%, manufactured housing must be underwritten through DU 48 O 2021 Fannie Mae. " Sweat equity may be allowed under qualifying programs - max LTV is 95% and borrower must contribute at least 3% from own funds for down payment -if so, Same as standard for LTV <=80%: 0% • LTV >80%: 1-unit principal residence property: 0% 2-4 unit property: 3% Same as standard Same as standard *LCOR = Limited Cash-Out Refinance (aka "rate/term" refi)

View entire presentation