Adjustable Rate Mortgage
Help your members achieve
their home financing goals!
Competitive ARM products are in high demand. In this rising rate environment, flexibility is key! The Flex ARM offers a low interest rate for a fixed period time, resulting in a more affordable payment for your member.
Key Program Requirements
- Loan to be Retained in Portfolio by Credit Union
- 30 Day Average SOFR Index
- 3% Margin, 5% Lifetime Rate Cap
- Qualifying Rate is 2% Above Initial Note Rate
- Financing for 1 Unit Primary Residences
- 680 Minimum Credit Score
- 43% Maximum DTI
Flex Adjustable Rate Mortgage (ARM)
| Product Eligibility Matrix | |
|---|---|
| Portfolio Status | Retained Non-Saleable (Due to the adjustment period of 1 year) |
| Loan Purpose | Purchase or Refinance |
| Occupancy | Primary Residence |
| Property Eligibility | Single Family, Condominiums, Double-Wide Manufactured Homes |
| Loan Term | 30 Years Only |
| Loan Amount | Loan Amount Up to conforming loan limit singlefamily.fanniemae.com |
| Loan to Value Ratio's | Up to 95% LTV - Purchase and Rate & Term Refinance Up to 75% LTV - Cash Out Refinance *Exceptions may be made by the credit union |
| Credit Score | Minimum 680 *Exceptions may be made by the credit union |
| Pricing | 7/1 ARM - 1.25% Lower than the 30 Year Fixed Rate 10/1 ARM - 1.00% Lower than 30 Year Fixed Rate |
| Qualifying Rate | 2% Above Initial Note Rate |
| Qualifying Ratio's | Maximum DTI - 43% *Exceptions may be made by the credit union |
| Escrow | LTV > 80% mandatory escrow account for taxes and insurance |
| Index | 30 Day Average SOFR www.newyorkfed.org |
| Margin | 3% |
| Lifetime Cap | 5% Above Initial Note Rate |
| Floor | 3% |
| First Adjustment Cap | 5% Above Initial Note Rate |
| Subsequent Adjustment Cap | 1% Above Initial Note Rate |
| PMI | Required when LTV is greater than 80% *Exceptions may be made by the credit union |
| Automatic Payments | Fully executed ACH authorization required prior to closing |