1. Version 2018.June

2. Familiarize you with the benefits, key features and requirements for GMFS Purchase Advantage low down payment mortgage/no down payment offering: Purchase Advantage Powered by CAFA
Purchase Advantage is a very select program offered by GMFS through a proud partnership with the Capital Area Finance Authority (“CAFA”). A large component and key feature of this program is the Freddie Mac Conventional Housing Finance Agency (“HFA”) Loan Product which is offered exclusively through HFAs such as CAFA.
Purchase Advantage powered by CAFA 2

3. Purchase Advantage Powered by CAFA Eligible Products
Purchase Advantage FHA 30yr
With 3% Down Payment Assistance
With 4% Down Payment Assistance
Purchase Advantage Conventional 30yr*
With 0% Down Payment Assistance
*Purchase Advantage Conventional is Freddie Mac’s
Conventional Housing Finance Agency (“HFA”) Loan Product.
Purchase Advantage powered by CAFA 3

4. Key Features: Purchase Advantage
No minimum borrower contribution
Purchase only
First time homebuyer or repeat buyers eligible
Available for Primary Residence Only
30 year Fixed Rate
No Recapture
Program Benefits
Purchase Advantage Conventional
Purchase Advantage FHA
Underwrite through LPA
97% LTV
Lower Mortgage Insurance Premiums than Standard Conventional
Freddie does not charge the standard LLPA Adjustment
Non QM
Underwrite through DU
96.5% LTV
No Reserves Required
Up to 6% Seller Concessions
Purchase Advantage-FHA
Purchase Advantage-Conventional
Minimum FICO
640 AUS / 680 Manual
640
AUS Guidelines
Approve / Eligible DU
Accept / Eligible
See Addendum for instructions on how to enter in LPA
Debt-to-Income (DTI)*
45% AUS / 43% Manual
50% with AUS approval
Income Maximums
115% AMI
No AMI restrictions until further notice
*Follow standard FHA or Freddie Mac Home Possible Advantage- HFA rules depending on program to determine which debts should be included in the ratio.
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5. Purchase Advantage powered by CAFA Mortgage Insurance coverage for Purchase Advantage Conventional program compared to Standard Conventional Coverage.
LTV Ratio
Purchase Advantage
Mortgage Insurance Coverage*
Standard Mortgage Insurance Coverage
Home Possible Advantage*
80.01% up to 85% 6%
12%
85.01% up to 90%
25%
90.01% up to 95%
16%
30%
95.01% up to 97%
18%
*Important Notes to Remember:
Grant Money may be used to cover Borrower Paid Single Mortgage Insurance
Premiums are allowed to be financed up to 97%
Lender-paid mortgage insurance option may not be used
Conventional Loan Only
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6. Purchase Advantage powered by CAFA Pricing Sample comparing Purchase Advantage Conventional program with 0% Grant Option to other Conventional Products
Loan Size: $276,000
LTV: 97%
FICO: 640
Loan Size: $276,000
LTV: 97%
FICO: 680
Purchase Advantage Conventional
Traditional Home Possible Advantage
Rate 4%
4.125%
P & I
$1,318.00
$1,388.00 MI
$305.90
$384.10
Total Payment
$1,623.90
$1,722.10
Purchase Advantage
Conventional
Traditional Home Possible Advantage
Rate
3.875%
3.75%
P & I
$1,298.00
$1,278.00 MI
$225.40
$264.50
Total Payment
$1,523.40
$1,542.50
Loan Size: $276,000
LTV: 90%
FICO: 680
Purchase Advantage Conventional
Traditional Home Possible Advantage
Traditional Freddie Loan
Rate
3.875%
3.75% 4%
P & I
$1,298.00
$1,278.00
$1,318.00 MI
$115.00
$167.90
Total Payment
$1,413.00
$1,445.90
$1,485.90
These pricing samples are to show the difference in the borrower payments with discounted private mortgage insurance offered ONLY through this Purchase Advantage Conventional Loan Product. The interest rates used on this chart are based on a 0% Grant Option.
Should the borrower choose to use Grant Money, the interest rate will be raised.
Interest Rates Subject to change.
Purchase Advantage powered by CAFA 6

7. Qualifying Income/Income Limits
Qualifying income must include all stable monthly income for all borrowers on the loan.
CAFA’s Income Limits are based on Area Median Income (“AMI”) per Parish
FHA income Limits are set at 115% of AMI
Income Limits on Purchase Advantage Conventional Loans have been waived!
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8. Approved Parishes and Income Limits (conventional are waived until further notice)
AMI
Purchase Advantage Conventional
Purchase Advantage FHA
Acadia
$62,100
 $86,940
 $71,415
Allen
Ascension
$74,800
 $104,720
 $86,020
Assumption
$62,900
 $88,060
 $72,335
Beauregard
$62,500
 $87,500
 $71,875
Calcasieu
Cameron
East Baton Rouge
East Feliciana
 $74,800
Evangeline
$86,940
Franklin
$ 62,100
Iberia
$71,415
Iberville
Jefferson
$65,600
$91,840
$75,440
Jefferson Davis
AMI
Purchase Advantage Conventional
Purchase Advantage FHA
Lafayette
$70,400
$98,560
 $80,960
Lafourche
$62,100
$86,940
$71,415
Livingston
$74,800
 $104,720
 $86,020
Ouachita
Pointe Coupee
$86,020
St. Bernard
$65,600
$91,840
$75,440
St. Helena
St. Landry
 $86,940
 $71,415
St. Martin
 $98,560
St. Tammany
 $91,840
 $75,440
Tangipahoa
$63,300
 $88,620
 $72,795
Terrebonne
West Baton Rouge
West Feliciana
Income Limits are waived on Purchase Advantage Conventional Loans, until further notice
Income limits are NOT waived on Purchase Advantage FHA Loans
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9. Other Eligible Sources of Funds Borrower Personal Funds
Flexible Down-payment & Closing-cost Sources for Purchase Advantage Conventional
Flexible Sources of Funds
Financing Concessions
3%LTV/TLTV ratio > 90%
6% LTV/TLTV ratio > 75% < 90%
9% LTV/TLTV ratio < 75%
Lender Credit
Down Payment Allowance
Down Payment Assistance from GMFS
Closing Costs and Escrow
Other Eligible Sources of Funds
Borrower Personal Funds
Depository accounts
Individual Development Account (IDA): Include matching funds only if not subject to recapture tax
Cash on hand
Securities
Retirement accounts
Government bonds
Community Savings-Borrower contribution
Loan secured by borrower’s assets
Cash value of life insurance policy
Sale of borrower’s real property
Trade equity
Sale of borrower's assets
Rent Credits
Borrower’s real estate commission
Funds from a trust
Pooled funds
Gift funds or gift of equity: Related Person
Gift funds: wedding gift
Gift/Grant: Agency
Gift/Grant: seller as the originating lender
Employer-Assisted Homeownership Benefit
IDA : Matching funds subject to recapture tax
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10. Sources of Funds: Cash on Hand for Purchase Advantage Conventional
Credit report shows no more than 3 trade lines
Copies of 3 months’ statements for any open revolving account that reveal cash advances are not the source of Borrower Funds
Any cash advances must be explained and documented
Updated credit report approximately one week prior to closing to show no new accounts or increase in current accounts
6 months’ cash receipts or other alternative documentation (refer to Freddie Selling Guide Section (b))
Complete Monthly Budget and Residual Income Analysis (Exhibit 23), or another document containing the same information
Evidence that funds for the down payment, Closing Costs, Financing Costs, Prepaids/Escrows and reserves are deposited in a financial institution or are held in an institutional escrow account prior to closing
The mortgage file must have no indication that the borrower typically uses checking, savings or similar accounts
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11. Homeownership Education
When all borrowers are first-time homebuyers, at least one qualifying borrower must participate in a homeownership education program before the Note Date*
A copy of Homeownership Education Certification, or another document with comparable information , to be retained in the mortgage file-prior to closing!
The requirement stresses the importance of utilizing a curriculum that contains the minimum core content specified by the National Industry Standards for Homeownership Education and Counseling. The standards help ensure quality education and counseling is delivered with fairness and respect to homebuyers and homeowners
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12. For Purchase Advantage Conventional Loans Loan Product Advisor Feedback Certificate *Must enter in LPA as “Home Possible Advantage for HFA”
Loan Product Advisor Feedback Certificate Evaluation Summary
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13. Loan Product Advisor Feedback Certificate cont.
Loan Product Advisor Feedback Certificate General Messages
Code
Messages JX
If all Borrower(s) are First-Time Homebuyers, at least one qualifying Borrower must participate in a homeownership education program before the Note Date. Retain Homeownership Education Certificate or comparable document in the mortgage file. EW
Seller is responsible for documenting and underwriting all Mortgages in accordance with the requirements of the Single-Family Seller/Servicer Guide and/or Master Agreement. NU
Loan Submitted as Home Possible Advantage for HFA mortgage
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14. Resources https://gmfsmortgage.com/purchaseadvantage/
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15. Updated

16. Pricing In Optimal Blue
In Optimal Blue you must select the appropriate county AND HFA Loan – YES. Otherwise the Purchase Advantage pricing will not show as an option. HFA stands for Housing Financing Agency.
Once the pricing populates, you first need to choose the appropriate price based on the Loan Program (Conventional or FHA) and Down Payment Assistance chosen. You have a 0% DPA (conventional only), 3% DPA option or a 4% DPA Option.
Purchase Advantage powered by CAFA
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17. Purchase Advantage Conventional Loans - LPA
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18. Purchase Advantage powered by CAFA

19. LPA Feedback Certificate
Purchase Advantage powered by CAFA
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20. Purchase Advantage powered by CAFA

21. Purchase Advantage powered by CAFA

22. Purchase Advantage powered by CAFA

23. Purchase Advantage FHA Loans - DU
Purchase Advantage powered by CAFA
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