1. Essex Mortgage Brings the VA CALHFA PRODUCT to you!

2. CalHFA VA Program 100% Max LTV 105% Combined CLTV
640 Minimum Credit Score
45% Max DTI
$453,100 Max Loan Amount (follow county guidelines for VA)
SALE PRICE LIMITATION: $660,000 STATEWIDE

3. Subordinate Financing – 1st time homebuyers
MyHome Assistance Program; or
May be used for closing cost (except for VA non allowable – see ) and/or down payment assistance
› In the case of conflicting guidelines, the lender must follow the more restrictive
› Must be recorded in Second Lien Position
School Teacher and Employee Assistance Program (School Program)
May be used for closing cost (except for VA non allowables) and/or down payment assistance
› In the case of conflicting guidelines, the lender must follow the more restrictive

4. Rates & Loan Amount SCHOOL PROGRAM MY HOME:
Interest rate on 2nd: 2 ½% Simple interest deferred payments
Loan Amount: 3 ½% of sales price or appraised value, whichever is less
SCHOOL PROGRAM
Interest Rate on 2nd: 2.5% Simple interest deferred payments
Loan Amount: % of sales price or appraised value, whichever is less
You can only use one of the above programs, to go behind a CalHFA VA 1st. The ZIP program is not available on the VA loan.

5. Income Limits Ratios cannot exceed 45%
Income Limits Ratios cannot exceed 45%. An MCC may not be used to credit qualify.

6. Income continued Income ratios: 45
Income continued Income ratios: % An MCC may not be used to qualify

7. Home Education & Occupancy Sales Price Limitations
HOMEOWNER EDUCATION:
Only required for one occupying first-time homebuyer.
Online at:
OCCUPANCY:
All borrowers (or a spouse and/or dependent for active duty members) must occupy the property as their primary residence within sixty (60) days of loan closing or per VA guidelines
Non-occupant co-borrowers are not allowed
Non-occupant co-signers are allowed per VA guidelines
Non-occupant co-signers: › must not occupy the property › must not be on title or have a vested interest in the property › must sign all loan documents except the security instrument(s) › will have their income, assets, liabilities and credit histories considered by underwriting

8. Property Requirements
Property must be a single-family, one-unit residence, including FHA/ VA- approved condominium/PUDs
Manufactured homes are not permitted
Non-permitted additions/alterations must follow VA guidelines
Lot size cannot exceed five (5) acres maximum
Properties must meet the requirements of VA and the California Health and Safety Code
Property Flipping – follow VA guidelines.
Accessory Dwelling Units (ADU), Guest houses, “granny” units, and “in-law” quarters are eligible
› Must be zoned for Single Family Occupancy
› Cannot be zoned for 2-4 units
› Must meet investor guidelines and city/county zoning

9. Sales Concessions
Sales Concessions/Contributions Concessions/contributions as per VA guidelines except for the following:
Payment of condominium fees
Personal property
Down payment assistance

10. VA – Allowable and Non Allowable Fees

11. VA – Allowable and Non Allowable Fees (con.t)

12. VA – Allowable and Non Allowable Fees (con.t)

13. VA – Allowable and Non Allowable Fees (con.t)

14. Fees

15. Tax Transcripts
Are required for all years that income is used for credit qualifying.

16. Home Warranty

17. First Time Homebuyers and Education Requirements Required: Always required on My Home, MCC and if using ZIP and borrower is a FTHB
For CalHFA purposes, a FTHB is defined as a borrower who has not had any ownership interest in any principal residence during the previous 3 years.
If currently owns a non owner residence, 3 years of cancelled checks would have to be provided to show paying rent elsewhere; living with parents would not suffice. This would only be require if DU calls for a VOR. If no VOR is called for, then no cancelled checks would be required.
Home Education is required for “one” occupying first-time homebuyer
First Time Homebuyer (FTHB)
Home Education

18. Fees and Lock Periods FEES FOR THE PROGRAM LOCK PERIODS
BORROWER PAID ONLY
Broker Compensation 1.00% origination fee
1st TD: $1350 Essex Admin Fee
2nd TD: If using My Home Assistance or School program: $250 Essex Processing Fee (you can’t use together)
Home Warranty fee
Third Party Contractors allowed if within the 3% points and fees test.
LOCK WHEN ALL PTD’S ARE CLEAR
Lock Period is for 30 days
CalHFA turn times can be found at:
8/24/20168/24/2016
FEES FOR THE PROGRAM
LOCK PERIODS