1. 3% TO 5% GRANT PRODUCT & FHA 1 ST TD FUNDS FORGIVEN NO RECAPTURE NO REPAYMENT The Sapphire Grant Program CA & Nevada 1/28/2016 1

2. Sapphire Product 650 – 679 FICO requires max DTI of 50% and DU approval 680+ no max DTI & DU approval (usually maxes out at 56.99) Do NOT need to be a first time homebuyer (unless you are combining with an MCC) – NO COUNSELING CLASSES The grant is used in conjunction of an FHA, 1 st trust deed You can combine with a CalHFA MCC to reduce ratios. (CA only) $500 fee (Box B of LE). If using MCC, borrower must be a 1 st time homebuyer and 3 year’s tax returns would be required. NOTE: Approval in house – no slow down on your in-house approval. Thursday, January 28, 2016 The grant of 3% or 5%, whichever you choose, is based on the total loan amount, including MIP, not on sales price or appraised value. Rates differ based on % of grant. Rate posted on page 1 of rate sheet. Essex charges an admin fee of $995 – Box A of LE. 1/28/2016 2

3. Sapphire Grant Product 3% or 5% Grant can be used for down payment, closing costs, processing fee, origination fee The Grant is forgiven; no repayment required ½% down can be gift or Grant. Borrower Paid Origination Only – 1 ½% Max broker comp: 1 ½% (can be paid by buyer, seller, 3 rd party, or with grant funds) Essex Admin fee of $995 (included Box A of LE; can be paid by grant or anyone in the transaction. SFR’s, PUD’s, or FHA approved condos; FLIPS YES; No to 203k ‘s and no units. Maximum Loan: $417,000 not including UFMIP No 3 rd party contract processing fees allowed. Owner Occupied Non occupant co-signors allowed (co signors income not considered in limitations Non occupant co borrowers not allowed. 115% of Medium Income Limitations; http://www.nhfloan.org/Programs/NHF_Sa pp_Income_Limits.aspx Income calculated per HUD or VA guidelines- not by family size Customary and reasonable closing cost fees allowed Manual lock at locks@essexmortgage.com (must be in Ready for Docs Status)locks@essexmortgage.com 3030NHF – FHA 30yr fixed 3% 30305NHF – FHA 30yr fixed 5% 1/28/2016 3

4. Summary of fees 1.50% Borrower Paid Only $995 Essex Admin Fee (Box A of LE) $500 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 3 rd Party Contract Processing Fees not allowed. 1/28/2016 4

5. IMPORTANT! – How to enter on the 1003 The Sapphire Grant is 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 1/28/2016 5

6. CA - Sapphire 2015 Income Limits 1/28/2016 6 CountyProgram Income Limits Alameda$106,835 Alpine$109,135 Amador$80,155 Butte$80,155 Calaveras$80,730 Colusa$80,155 Contra Costa$106,835 Del Norte$80,155 El Dorado$82,225 Fresno$80,155 Glenn$80,155 Humboldt$80,155 Imperial$80,155 Inyo$82,225 Kern$80,155 Kings$80,155 Lake$80,155 Lassen$80,155 Los Angeles$80,155 Madera$80,155 Marin$117,185 Mariposa$80,155 Mendocino$80,155 Merced$80,155 Modoc$80,155 Mono$88,550

7. CA Sapphire 2015 Income Limits 1/28/2016 7 Monterey$80,155 Napa$96,830 Nevada$80,155 Orange$98,785 Placer$82,225 Plumas$80,155 Riverside$80,155 Sacramento$82,225 San Benito$83,720 San Bernardino$80,155 San Diego$83,950 San Francisco$117,185 San Joaquin$80,155 San Luis Obispo$88,665 San Mateo$117,185 Santa Barbara$86,710 Santa Clara$122,245 Santa Cruz$100,050 Shasta$80,155 Sierra$80,155 Siskiyou$80,155 Solano$85,675 Solano (City of Vacaville)$98,526 Sonoma$84,640 Stanislaus$80,155 Sutter$80,155

8. CA - Sapphire 2015 Income Limits 1/28/2016 8 Tehama$80,155 Trinity$80,155 Tulare$80,155 Tuolumne$80,155 Ventura$98,095 Yolo$83,030 Yuba$80,155

9. Nevada Income Limits 2015 1/28/2016 9 CountyProgram Income Limits Carson City$79,005 Churchill$76,590 Clark$68,885 Douglas$84,870 Elko$91,195 Esmeralda$68,885 Eureka$80,615 Humboldt$86,940 Lander$84,295 Lincoln$68,885 Lyon$68,885 Mineral$70,840 Nye$68,885 Pershing$69,805 Storey$73,025 Washoe$73,025 White Pine$69,230 Updated 03/11/2015

10. Can I have an MCC Tax Credit with the Sapphire Product? Yes! CA only. 1/28/2016 10

11. Combine your Sapphire with an MCC Credit – however remember MCC requires you to be a 1 st time h/b, Sapphire does not. Three years tax returns will be required. 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. 1/28/2016 11