Introducing our 100% DPA PRODUCT LET US HELP YOU BUY THAT HOME TWO CHOICES – ADVANTAGE OR EDGE IN HOUSE APPROVAL!!! Welcome to our 100% Down Payment Assistant Program. We are very happy that we can offer this to your and your clients. This is a great way for a borrower, who is shy of having money for their down payment , but still wish to buy a home. 04 05 2019

100% DOWN PAYMENT ASSISTANT PROGRAM TWO CHOICES ADVANTAGE EDGE 1st Loan Amount 96.5% 1st FHA Conforming loan limits Same 2nd TD 3.5% 8% Note Rate – 10 Yr. Amortized – Payment is counted in ratios Lender Paid Compensation Admin fee of $1095 to Essex. A 3rd party processing fee may be charged up to $1000. Total of all fees, including lender comp, may not exceed 3%. Borrower Paid Compensation Admin to Essex $1095. Up to 2.375% for broker. You may charge 3rd party processing fee up to $1000, but total fees may not to exceed 3% 1ST Time Homebuyer Not required (but at closing may not own any other property Not required (may own other property at closing) FICO 640 620+ DTI Max 50% & DU approval Up to 56.99 & DU Approval (manual underwriting available with compensating factors – ratios up to 40/50 is possible) There are two options – The Advantage or the Edge. In the next two screens, I have marked in RED when the product differs from one another. The 1st is an FHA loan @ 96.5%LTV. The 2nd covers the 3.5% down payment. The rate is fixed 8% and is amortized over 10 years A payment is required and will be part of the DTI ratios. The pricing on this loan is on page 1 of our rate sheet. We do charge an Admin Fee. Depending on the circumstances of your loan, you can choose to go Lender Paid or Borrower Paid – in most circumstances, the Edge will require borrower paid. All this depends on the pricing of your loan, and if there are seller concession's to include in your closing. In the end, the loan must always pass the points and fees test of MAVEN. Unlike many of the DPA products in the market – THIS DOES NOT REQUIRE 1ST TIME HOMEOWNERSHIP Advantage does not allow you to own any other property at time of closing- the Edge does. The minimum FICO requirement for the Advantage is 640; Edge is 620.Another difference here. The Advantage has a max DTU to 50%. If your ratio is higher, you must use the Edge. The Edge allows up to 56.99 and DU approval. We will consider manual underwriting on the Edge on a case by case basis – knowing there would have to be compensating factors – ratios of 40/50. 04 05 2019

DPA PROGRAM CONTINUED…. TWO CHOICES ADVANTAGE EDGE Income 115% of AMI No Income Restrictions Sale Price Restrictions None Property 1 unit SFR, Condo or PUD 1-2 Units SFR, Condo or PUD Non Occupant C/B Not allowed Allowed- 1 unit only W2 only for Income Allowed Home Ownership Counseling Not Required Required for FICO SCORES BETWEEN 620-239 https://www.borrowersuccess.org/prepurpurchase Borrowers with credit scores between 620-39 need to participate in pre-purchasing counseling prior to close. To schedule, contact locks@essexmotgage.com for information needed to register. Once you advise us you are registering and we will enter all the mandatory information to their site. The borrower can then 4/5/20194/5/20193334/5/20197/8/20194/5/20194/5/201937/8/2019call 866-237-9001 to schedule their pre-purchasing counseling. Proof of class will be a PTD condition. MCC’s Allowed if available Limitation of loans No limit No Limit Lending States All Essex approved states except for NY Same as Advantage Another difference again. The Advantage has an income limitation; the Edge does not. There are no sales price restrictions. The Advantage is only for 1 unit properties; the Edge allows 2 units The W2 income program can be used with this product Homeownership counseling is required for the Edge program if FICO is between 620-639. MCC’s are limited at this time. Check with your AE to see if there are funds available. We do not limit the amount of loans sent to Essex on this product. Essex is currently approved in nearly 30 states. This program does not allow us to lend in these particular states Illinois, Mississippi, New York, South Dakota and Wyoming. So…you see, we have many states in which we can utilize this product. 04 05 2019

When to lock & Program fees HOW AND WHEN TO LOCK FEES Manual Lock Email lock to: locks@essexmortgage.com Loan must be approved and appraisal signed off by underwriter $1095 Essex Admin Fee $1,000 Max 3rd Party Processing Fee, if applicable FICO Hits, if applicable Loan Amount hits, if applicable Lender Paid or “Borrower Paid, depending on pricing of loan. (max borrower paid is 2.375%) The total fees may not exceed 3% Points and Fees Test. When locking – this is a manual lock. You can lock by emailing us at locks@essexmortgage.com BEFORE YOU CAN LOCK – Loan must be approved and appraisal signed off by Underwriter. FEES – Essex charges an Admin Fee. Apply any FICO OR LOAN AMOUNT hits if application. You must determine if you want to go borrower paid or lender paid. In the end, the total fees charged can not exceed the 3% Mavent Test. 04 05 2019

SAMPLE RATE SHEET FOR Advantage and edge 100% DPA Products Here is an example of a rate sheet. This will be an example of a Advantage – 680 FICO, loan amount of $350,000 @ 5.25% Since there are no loan or FICO adjustments, your pricing would be 5.25 with 2% rebate borrower paid. If you locked this Lender Paid and your comp plan was 2.75, you would have a discount of .750 due. Make sense? Remember at all times, you must meet the 3% points and fees test of MAVENT. If your comp on this scenario was 2%, you would be a par pricing. 04 05 2019

Secondary Financing on 1003 These two screen shots help you when completing your 1003 – this is how you disclose the 2nd. 04 05 2019

Secondary Financing –DO/DU Page 2-Types, Terms, & Property Page 7-Transaction Details This screen is to help you when running your DU on how to disclose the 2nd. 04 05 2019

Select the state, select the county, click the button “View County Calculations” Go to the HUD Area Median Income Site. This can be found online at: https://www.huduser.gov/portal/datasets/il.html If you are hoping to use the Advantage Program, your borrower does need to meet the income limitation as described above. First go to the link above. Pick your state and county. 04 05 2019

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 2.3 = $111,435 for a household of 1-4 persons. The 6 person household very low income is $56,250 x 2.3 = $129,375 for a household of 6 persons. The 8 person household very low income is $64,000 x 2.3 = $147,200 for a household of 8 persons This is a little tricky. You will always use the column that states VERY LOW 50% If you have a family of 1-4 people, pass over the 1-3 persons category and go straight to the 4. If you have a family of 5, 6,7,or 8, go that that particular category. Take that number given - times it by 2.3% (= 115%). The above gives you an example of 6 people in the family $56,250 x 2.3 = $129,375 for a household of 6 persons. If you run in to a problem in trying to come up with the right figure for your circumstances, please contact your AE. 04 05 2019

LET’S CLOSE LOANS TOGETHER HOW TO SUBMIT 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 : Submission sheet (nothing else) Programs Codes: Advantage: 1st: FHA 3030CHRA 2ND: 4030CHRA Edge: 1st FHA 3030CH 2ND: 4030CHDPA Advise submission@essexmortgage.com of both loan numbers when uploaded. We approve – We fund! LET’S CLOSE LOANS TOGETHER Okay, it’s pretty simple right? I hope you find it as exciting as we have. The phones are ringing off the hook for this product. The rates are great, the DPA is great to have and if you get some seller concessions to help you along in closing this loan, you will wind up with a happy borrower! One last thing….Essex approves this loan in house. There is no need for a prior approval from any other investor. Now it it’s up to you! Get that loan (actually 2 loans) submitted today! Thank you for wanting to learn about this new and exciting product for Essex. 04 05 2019