05 01 2018

We offer to chenoa products Feature Chenoa Advantage Chenoa Edge 1st: FHA Conforming (call for pricing on High Balance) FHA Conforming only 2nd: 8% rate 10 year fully amortized 0% rate 10 years amortized Compensation Borrower or Lender Paid – not to exceed 3% in point and fees – must include Essex 1095 Borrower Paid only – Broker can charge 2.25% Essex Fee - $1095 1st Time Homebuyer Not required Not Required DTI 50% (can not use an MCC) DU approval (Can not use an MCC) FICO SCORE 640 620 Max Income 115% of AMI – check with AE to help you calculate per Chenoa No Income Restrictions Property 1 unit, SFR, Condo, PUD 1-2 units, SFR, Condo PUD (income can be used on 2nd unit at 75%) Sales Price Restrictions None 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 05 01 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: Borrower paid - Up to 2.25% Broker fee - (unless loan does not meet 3% points and fees test) Edge – Lender paid if meets 3% points and fees 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 05 01 2018

Secondary Financing on 1003 05 01 2018

Declarations page of 1003 05 01 2018

Secondary Financing –DO/DU Page 2-Types, Terms, & Property Page 7-Transaction Details 05 01 2018

Secondary Financing LP 05 01 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 05 01 2018

Select the state, select the county, click the button “View County Calculations” 05 01 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 05 01 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! 05 01 2018