08 15 2018

We offer to chenoa products Feature Chenoa Advantage Chenoa Edge 1st: FHA Conforming only FHA Conforming only 2nd: 8% rate 10 year fully amortized Compensation Borrower or Lender Paid – not to exceed 3% in point and fees –include Essex 1095 Borrower or Lender Paid – not to exceed 3% in point and fees – include Essex $1095 1st Time Homebuyer Not required (but may not own any other property when our loan closes) Not Required (may own other property at closing) DTI 50% DU approval (56.99%) FICO SCORE 640 - No previous bankruptcy, foreclosure, deed in lieu, short sale or credit counseling, or downgraded to Edge 620 Max Income 115% of AMI – check with AE to help you calculate per 8/15/2018Chenoa No Income Restrictions Property & Lending States 1 unit, SFR, Condo, PUD (All states where Essex is approved) States not approved IL, MS, NY, SD, WY) 1-2 units, SFR, Condo PUD (income can be used on 2nd unit at 75%) (same as Advantage) Sales Price Restrictions None Non Occupant Co borrower or Cosigner Not allowed Allowed W2 program Allowable if salaried and 1 unit Allowable if salaried and 1 unit Limit of how many loans can be submitted to Essex Mortgage No limit MCC’S (CA only) Allowed – Add to Income – extra $750 charge on your disclosures Allowed – Add to income – extra $750 charge on your disclosures 08 15 2018

PROGRAM LOCKING & Program fees PROGRAM LOCKING & Program fees any fee below affects the 3% point and fees test. Loan must be locked by 1:00 PM, PST All PTD’s must be cleared before locking. $1095 to Essex Advantage: Lender paid if meets 3% points and fees –It may be best to disclose your Lender comp in case you have to switch to Borrower paid. Edge – Lender paid if it meets 3% points and fees –It may be best to disclose your Lender comp in case you have to switch to Borrower paid. Program hits, i.e. FICO score and loan amount hits also go toward points and fees. Can have a Contract Processing Fee max $1125 if it passes 3% test. Programs Codes: Advantage: 1st: FHA 3030CHRA 2ND: 4030CHRA Edge: 1st FHA 3030CH 2ND: 4030CHDPA 08 15 2018

Secondary Financing on 1003 08 15 2018

Declarations page of 1003 08 15 2018

Secondary Financing –DO/DU Page 2-Types, Terms, & Property Page 7-Transaction Details 08 15 2018

Secondary Financing LP 08 15 2018

Calculating Area Median Income Go to the HUD Area Median Income Site. This can be found online at: https://www.huduser.gov/portal/datasets/il.html 08 15 2018

Select the state, select the county, click the button “View County Calculations” 08 15 2018

Always begin at 1-4 people living in the house,  2 people always use 4, 3 people always use 4.. you get the idea, that’s why 4 is in bold as you begin there J   LOS ANGELES COUNTY here are sample income limits, LA County at min the income limit is 111,435 for 1 to 4 people in household The 1-4 person household very low income is $48,450 x 2= $96,900 and if you multiply that number by 115% the result is $111,435 for a household of 1-4 persons. The 6 person household very low income is $56,200 x 2 = $112,400 and if you multiply that number by 115% the result is $129,260 for a household of 6 persons. The 8 person household very low income is $64,000 x 2 = $128,000 and if you multiply that number by 115% the result is $147,200for a household of 8 persons 08 15 2018

Next Steps… Process your loan file as usual (upload 1st& 2nd – 2 loan numbers) 1st: FHA guidelines (okay to use FHA submission sheet); submit complete file. 2nd : Submit 1003 with loan amount of 2nd – and submission sheet (nothing else) Advise submission@essexmortgage.com of both loan numbers when uploaded. We approve – We fund! 08 15 2018