1. A LENDER PERSPECTIVE ON HFA ADVANTAGE & DOWN PAYMENT ASSISTANCE JORDAN O’BRIEN - PRIMELENDING

2. ADDING A FREDDIE MAC PRODUCT TO THE TOOLBOX

3. WHAT DO FREDDIE MAC HFA ADVANTAGE LOANS MEAN TO HOMEBUYERS? MINIMUM DOWN PAYMENT OF 3% W/ NO FIRST TIME HOMEBUYER REQUIREMENT ONLY 18% REQUIRED PMI COVERAGE W/ 3% DOWN – TYPICALLY 35% IS REQUIRED W/ 3% DOWN MONTHLY PMI IS TEMPORARY AND NOT FOR THE LIFE OF THE LOAN FLEXIBLE MI OPTIONS SUCH AS SINGLE PREMIUM MI/MONTHLY MI NO UPFRONT MORTGAGE INSURANCE THAT ROLLS INTO LOAN ALLOWS FOR GRANTS/DPA FUNDS TO BE USED TOWARDS DOWN PAYMENT & CLOSING COSTS FLEXIBLE MI OPTIONS

4. ADVANTAGES OF USING SETH GRANTS ON FREDDIE MAC ADVANTAGE LOANS: 4% GRANT BASED ON THE LOAN AMOUNT TOWARDS DOWN PAYMENT AND CLOSING COSTS. GRANT NEVER HAS TO BE REPAID AND DOESN’T HAVE RECAPTURE TAX CAN USE GRANT FUNDS FOR SINGLE PREMIUM PMI AND PERMANENTLY REMOVE PMI FROM THEIR MONTHLY PAYMENT. MAX LOAN AMOUNT: $324,000; HOME CAN BE NEW OR EXISTING CONDOS ARE ALLOWED WHICH IS TYPICALLY NOT ALLOWED ON CONV DPA PROGRAMS. MOST DPA PROGRAMS ALLOW CONDOS ON FHA HOWEVER IT’S ALWAYS DIFFICULT FOR THE BORROWER TO FIND AN APPROVED FHA CONDO ALL UNDERWRITING APPROVALS/CLOSINGS ARE DONE IN HOUSE. REGISTERING LOANS THROUGH EHOUSING IS SIMPLE

5. NO FIRST TIME HOMEBUYER REQUIREMENT W-2’S & W-2 TRANSCRIPTS ONLY – UNDERWRITING WILL NOT REQUIRE YOU TO PROVIDE TAX RETURNS OR TAX RETURN TRANSCRIPTS UNLESS YOU ARE USING OTHER SOURCES OF INCOME OTHER THAN W-2 INCOME LIMITS RANGE FROM $91,280/YR. TO UPWARDS OF $124,740/YR. DEPENDING ON COUNTY QUALIFYING INCOME IS BASED ON 1003 INCOME ONLY – NOT “HOUSEHOLD INCOME” FOR EXAMPLE: IF HUSBAND/WIFE COMBINED INCOME EXCEEDS INCOME REQUIREMENT YOU CAN REMOVE EITHER THE HUSBAND OR WIFE'S INCOME TO BE UNDER THE INCOME REQUIREMENT AS LONG AS THEY STILL MEET ALL OTHER GUIDELINES. IF BORROWERS TOTAL INCOME EXCEEDS INCOME LIMIT HOWEVER BORROWER JUST NEEDS HIS BASE INCOME TO QUALIFY YOU DON’T NEED TO FACTOR IN ANY OVERTIME, COMMISSIONS, BONUS, ETC. THAT WOULD PUT THEM OVER THE INCOME REQUIREMENT.

6. OVERVIEW AS A LENDER IT’S IMPORTANT TO HAVE A VARIETY OF PRODUCTS/DPA OPTIONS AT MY DISPOSABLE THAT I AM KNOWLEDGEABLE WITH. IT’S KEY IN GAINING YOUR CLIENTS TRUST AND SELLING THEM THE RIGHT FINANCIAL DECISION FOR THE BENEFIT OF THEIR FUTURE THERE'S A WIDE VARIETY OF DOWN PAYMENT ASSISTANCE PROGRAMS IN THE MARKET THAT ALL HAVE DIFFERENT GUIDELINES. IT’S BENEFICIAL TO HAVE 3 TO 4 PROGRAMS YOU ARE CONSISTENTLY USING USE THE RIGHT PRODUCT FOR THE RIGHT CLIENT. AS A LENDER YOU CAN’T JUST KNOW ONLY 1 ASSISTANCE PROGRAM I PRIMARILY USE SETH 5 STAR FOR MY CLIENTS I ALWAYS LEVERAGE THE SUPPORT OF THE PROGRAM DIRECTORS/STAFF. HAVING THAT RELATIONSHIP IS KEY AND THEY HAVE SUPPORTED ME TO THE FINISH ON ALL MY DEALS.

7. JORDAN O’BRIEN PRIMELENDING – TEAM VARELA 817-799-3980 JOBRIEN@PRIMELENDING.COM WWW.JORDAN-OBRIEN.COM