Transaction Type	Number of Units	Maximum LTV/CLTV/HCLTV	Minimum Credit Score
FHA 30-Yr Fixed Purchase	1-2 Units	96.50% LTV + 3.5% DPA = 100% CLTV	600

NorthStarONE is designed to increase homeownership opportunities for low-to-moderate-income individuals and families nationwide (excluding New York and Washington State). Unless otherwise specified as an overlay, NSF adheres to all posted guidelines for FHA eligibility, as found in the FHA Single Family Housing Handbook 4000.1. Down Payment Assistance is available to achieve 100% CLTV with these two options:

1) NorthStarONE (2nd lien is a zero percent (0.00%) Note rate, fully amortized over 30 years, with a forgivable option), and 2) NorthStarONE Plus (featuring a 2nd lien with an interest rate equal to the first lien rate plus 2% with a 10-year amortization and monthly payments required).

TOPIC	BORROWER ELIGIBILITY
AUS	Approve/Eligible or Accept findings required manual Underwriting is not allowed
Credit Score	600 Minimum Credit ScoreMust meet all FHA credit standards per FHA Single Family Housing Handbook 4000.1
Debt-to-Income Ratio (DTI)	Follow AUS findings (Approve/Eligible or Accept findings required)MaxONE PlusPayment for the 2nd lien must be included in qualifying ratios (2nd rate equal to first lien rate plus 2% and a 10-year amortization)Underwriter must resubmit AUS after the loan is locked.
Eligible Properties	Condominium (must not be in litigation)Double-wide manufactured housing allowed (single-wide not allowed)Planned Unit Development (PUD)SFR (1-2 Units)Townhouse.

TOPIC	BORROWER ELIGIBILITY
Income	Follow FHA Single Family Housing Handbook 4000.1 guidelines income Limits: No restrictionsUnderwriter to notate Income Limit on 92900LT (per https://www.huduser.gov/portal/datasets/il.html) Use Individual Median Family IncomeSearch by State and County in which the property is located.
Ineligible Borrowers	Any borrower who does not meet FHA’s definition of a lawful, legal resident of the United States of America (For borrower residency or VISA classification acceptance, follow FHA Guidelines)
Occupancy	Primary Residence onlyNon-occupant co-borrowers allowed per FHA Single Family Housing Handbook 4000.1No First-time Homebuyer requirement
TOPIC	FHA 1st TD with 2nd DPA Lien
1003 – Initial and Final	Initial and Final 1003 are both required; per FHA guidelines, at least one of the 1003s must be signed by the Mortgage Loan Originator (MLO), and at least one must have the ‘Present Housing Expense’ section completed (no exceptions)
Borrower Contribution	The borrower’s minimum contribution is $0.00
Cash Back to Borrower	A borrower may not receive any cashback from DPA proceeds (this includes any earnest money deposit)
Credit Report – Tradelines	A borrower whose only credit history is built from an ‘Authorized User’ account is not eligible.
Down Payment Assistance (DPA) and Closing Costs Assistance	NSF allows Down Payment Assistance (DPA) as outlined below: Up to 3.5% of the Sales Price or Appraised Value (lesser of the two)DPA proceeds may be used for a down payment and/or closing costs DPA proceeds may not be used for cash back to the borrower(s)MaxONE 2nd lien is a zero percent (0.00%) Note rate, fully amortized over 30 years, with a forgivable option NorthStarONE Plus 2nd lien has an interest rate equal to first lien rate plus 2% and 10-year amortization with monthly payments required

TOPIC	FHA 1st TD with 2nd DPA Lien
Fees and Compensation	N/A
First Mortgage Loan Types and Terms	Loan Types (FHA; in accordance with FHA Guidelines) o 203(b) o 203(b)(2) o 234(c) Loan Term30-Year Fixed with Full AmortizationMaximum Loan AmountConforming Limits (HUD FHA Mortgage Limits Lookup Tool)Maximum LTV/CLTVMax LTV of 96.50% for First MortgageDown Payment Assistance (DPA) of 3.5% AllowedMax CLTV of 100%
High-Cost, HPML, and QM Compliance	HPML transactions are permitted; Lender must comply with CFPB and TRID requirementsHigh-cost loans are not permitted all loans must comply with QM/ATR complianceLoans exceeding 3% maximum points/fees test are not permitted unless a cure is applied bona Fide Discount Points must adhere to CFPB and all (if any) state regulations
Homebuyer Education	At least one borrower must receive housing counseling from a HUD-approved non-profit housing counseling agency (https://www.hud.gov/program_offices/housing/sfh/hcc/hcc_home) prior to the Note date

TOPIC	FHA 1st TD with 2nd DPA Lien
Ineligible Features	Building on own land construction-to-PermEasements and Deed Restrictions that affect value, marketability, or property accessibility as determined by the appraiser and for which no protective title endorsement is available loans with resale Deed RestrictionsProposed or Under Construction (New Construction is eligible, provided it is complete at the time of purchase)
IRS Transcripts	Required for self-employed borrowers or any borrower who needs tax returns for qualifying
Loan Amount	Maximum loan amount follows standard conforming FHA Guidelines and varies by subject property county (HUD FHA Mortgage Limits Lookup Tool)Minimum Loan Amount – $75,000.00
Loan Purpose	Purchase only
Mortgage Insurance (MI)	Standard FHA Coverage
Product Description	1st TD, 30-Year Fixed Rate Term, Full AmortizationMaxONE 2nd lien is a zero percent (0.00%) Note rate, fully amortized over 30 years, with a forgivable optionMaxONE Plus 2nd lien has an interest rate equal to first lien rate plus 2% and a 10-year amortization with monthly payments required
State-specific Overlays	AZ – Minimum 2nd TD Loan Amount of $5,000.00MA – Not eligibleME – Not eligibleNY – Not eligibleSC – Minimum 2nd TD Loan Amount of $5,000.00WA – Not eligible