Essex HELP Product Allowed in Nevada, CA and Utah Call your account Executive for for grant $ and % Funds Forgiven No recapture No Repayment 02 23 2017

IMPORTANT TO READ (definition of DPA products: HELP & CALHFA Essex is happy to be able to offer you Down Payment Assistant (DPA) Products for your borrowers. Required of BROKER: No more than 50% of your overall production with Essex (which includes HELP, and CalHFA products (CA only) can be a DPA product. Essex will review monthly. If the ratio is exceeded, further DPA submissions will be suspended until your company is back in line with the ratio of 1 for 1. 02 23 2017

HELP Product Features 3% Grant Funds – not repayable (interest rate subject to change – check with your AE) FICO – MINIMUM 660 MINIMUM RATIO: 50% DTI DU Approval – no manual underwriting Do NOT need to be a first time homebuyer (unless you are combining with an MCC – CA only) – No counseling classes needed. The grant is used in conjunction with an FHA, 1st trust deed; use ordinary FHA submission checklist when submitting file. NOTE: Approval in house – no slow down on your in-house approval. The Grant is based on the total loan amount, including MIP, not on sales price or appraised value. Call your AE for $ and % of Grant Combine with a CalHFA MCC to reduce ratios. (CA only) $750 fee (Box B of LE). If using MCC , borrower must be a 1st time homebuyer and 3 year’s tax returns would be required. 02 23 2017

GRANT Product Features cont. The Grant is forgiven; no repayment required Grant can be used for down payment, and closing costs. Owner Occupied: SFR, FHA approved condo, PUD, Maximum Loan: $424,100 Plus MIP Non occupant co-signors allowed (co signors income not considered in limitations Non occupant co borrowers not allowed. Income calculated per HUD guidelines Income limits per County not by family size Customary and reasonable closing cost fees allowed Manual lock at locks@essexmortgage.com (must be in Ready for Docs Status) 3030 HELP (CA , Utah and Nevada)– FHA 30yr fixed 02 23 2017

Summary of fees BORROWER PAID COMPENSATION BROKER: ESSEX: 660+FICO: 1.50% & $495.00 $1495 Admin Fee $750 for CALHFA if used with an MCC (CA only) Box B of LE Home Warranty Required – Box C of LE Home Inspection Required – Box C of LE A 3rd party processing fee will NOT be paid. Must be paid thru broker compensation only. 02 23 2017

IMPORTANT! – How to enter on the 1003 Our Grant programs are NOT a lender credit nor an “other asset”. There are 2 places on the 1003 which the grant funds need to be entered correctly in order for the DU to run properly. The below are screen prints of how to enter in DO/DU. We want your approval to be accurate. AVOID incorrect approvals – due to incorrect input. These are screen prints from POINT. Important factors : Borrowers with good credit and low ratios have better chance of approval. How to enter on Page 1 of the 1003 under source of down payment: List as FHA Gift Source Nonprofit/Religious/Community-Non-Seller Funder How to enter on Page 2 of the 1003 under the asset screen: Gift 02 23 2017

Income Limits HELP INCOME LIMITS: 140% of Medium Income Limits HELP – CA, Utah and Nevada Program code: 3030HELP-FHA 30yr fixed 02 23 2017

CA - HELP GRANT INCOME LIMITS Use 140% column below (revised 9 2016) 02 23 2017

CA - HELP GRANT INCOME LIMITS cont CA - HELP GRANT INCOME LIMITS cont. Use right column below (revised 9 2016) 02 23 2017

NEVADA - HELP GRANT INCOME LIMITS cont NEVADA - HELP GRANT INCOME LIMITS cont. Use 140% column below (revised 9 2016) 02 23 2017

UTAH HELP INCOME LIMITS 02 23 2017

Can I have an MCC Tax Credit with the HELP Product? Yes! CA only. 02 23 2017

An MCC Credit can help you reduce your ratios. (CA only) When using a MCC Credit, use the CalHFA income/sales limits, whichever is lower. If using MCC, one (1) UNIT ONLY!! Combine your HELP with an MCC Credit – however remember MCC requires you to be a 1st time h/b, HELP does not. Three years tax returns will be required. 1 UNIT ONLY!! 02 23 2017