1. Essex Mortgage Brings CALHFA PRODUCTS to you!
Welcome to our CalHFA presentation. I want to make this an understandable as possible for you and your clients.

2. How do you know what program you want?
Do you want to work with an FHA or Conventional loan? Do you want a 1st, 2nd, and 3rd or just a 1st and 2nd? Is your borrower a FTHB; they must be!
You have several product options, but they all surround these basic descriptions!
CalHFA 1st – only allows a 2nd (Conventional or FHA) can be combined with:
My Home Assistance 2nd; or
School Program 2nd.
Cal “Plus” 1st - allows for a 2nd and 3rd (Conventional or FHA) can be combined with:
My Home Assistant 2nd
School Program 2nd
My Home Assistant 2nd and a ZIP 3rd
School Program 2nd and a ZIP 3rd
NOTE: My Home and School Program can only be used for down payment and/or closing cost assistance. This is not to be used to pay the difference in sales price and appraised value if the sale price is higher. It also can not be used for paying off borrower debt. ZIP can only be used to pay for closing costs and/or prepaid items only.
You have options on this program. Conventional or FHA? 1st and 2nd? Or 1st, 2nd or 3rd? We can go up to as high as 104% CLTV. We also have a program that is special to anyone who works as a teacher or for the school district.

3. This is a simple way to look at how you can create your loan
This is a simple way to look at how you can create your loan. Note, CalHFA recently does not always allow for the 3rd, so you need to make sure a 3rd is being offered on the rate sheet.

4. Compare: My Home Assistance – ZIP – SCHOOL FHA or Conventional)
MY HOME ASSISTANCE – 2nd only
ZIP – Can be a 2nd or a 3rd
School Program – can only be a 2nd
Can only be used as a 2nd with a CalHFA 1st or CalPlus 1st –
Can be used as 2nd or 3rd with a CalPLUS 1st only. (Must be in third position if used with My Home Assistance
Can be used with a CalHFA as 2nd (not with My Home), or Cal Plus as 2nd and add a ZIP 3RD
2 ½% Simple Interest Rate compounded annually; deferred payments.
Due when 1st is paid in full, refinanced, or assumed. No forgiveness of debt.
0% Interest Rate/payments
Due when property is transferred or 1st loan is refinanced, or paid in full.
No forgiveness of debt.
2 ½%– simple interest deferred payment
Loan amount: 3 1/2 % of Sales Price or appraised value, whichever is less
Loan amount can be 3% or 4% of 1st loan amount (including MIP)
Loan amount not to exceed 4% of lesser of s/p or a/v/
Must be a FTHB
Home education required
Home Education required
1 Year HOW Warranty required to cover water heater(s), air conditioning and heating – if placed with an FHA you must also include oven/stove/range
1 Year HOW Warranty required only if a FTHB. Must cover water heater(s), air conditioning, heating and if with an FHA, must include oven stove and range.
These are the 2nds that are offered:
My Home Assistance can only be used as a 2nd. ZIP can be a 2nd or 3rd but only used for closing cost. The School Program can only be a 2nd.

5. Comparing Programs CalHFA Con 1st CalHFA FHA CalPlus Con 1st
Can not use a ZIP
CalHFA FHA
CalPlus Con 1st
CalPlus FHA 1st
MHA
2nd Only
ZIP
2nd or 3rd
SCHOOL Program
Conforming $453,100 or max for county + MIP
97/105CLTV
High balance to $636,150 (subject to an additional fee; see rate sheet);
Max LTV for HB Conventional 95%/105 CLTV
Conforming
$453,100 or max for county + MIP
High balance to $636,150 (subject to an additional fee; see rate sheet)
High balance to $636,150 (subject to an additional fee; see rate sheet) Max LTV for HB Conventional 95/105% CLTV
Rate: 2 ½%; deferred payment, simple interest rate
Loan Amount:
3 ½% S/P OR A/V, whichever is less
CAN BE USED FOR DP/CC/ AND PREPAIDS
Rate: 0% deferred interest rate
Choice of 3% or 4% of 1st loan amount;
ZIP CAN ONLY BE USED TO PAY C/C AND OR PREPAIDS
Rate:
2 ½% deferred payment, simple interest
4% of the S/P or A/V, whichever is less
Employee currently employed in any K-12 CA public school, including public charter schools, school district officer and county/continuation schools
Another way to view all the different comparisons of what you can do.

6. Comparing Programs (cont.)
CalHFA Con 1st
CalHFA FHA 1st
Cal Plus Con 1st
Cal Plus FHA 1st
MHA 2ND only
ZIP 2nd or 3rd
2nd only :
School Program
640 Minimum FICO
No manual underwrite
660 FICO if manual underwrite
Depending on 1st TD
SFR, Condos and PUD’s
Same
N/O co borrower are not allowed
Borrower affiliation required
n/a
One employee currently employed in any K-12 CA public school, including public charter schools, school district officer and county/continuation schools
The program requires a 640 FICO SCORE – 660 if you have a manual underwrite. The manual underwrite is only for FHA loans. The 2nd TD guidelines fall behind what is required of the 1st.

7. Comparing Programs cont.
CalHFA Con
CalHFA FHA
CalPlus Con
CalPlus FHA
MHA 2nd only
ZIP (2nd or 3rd)
SCHOOL PROGRAM
(2nd only)
Home Education required for 1 occupant
Same
same
Non Occupant Co Signers are NOT allowed
Non Occupant Co Signers ARE allowed – income not counted in limitations
Same as 1st TD
Same as 1st TD
Not subject to recapture tax
3 Years Tax Return
3 Years Tax Returns
45% Max DTI
43% if Manual underwrite
Home Education is always required for only 1 of the occupants.
Non Occupant Co signers are not allowed on Conventional loans – they are allowed for FHA – their income will not be counted toward the guidelines
None of these programs are subject to recapture tax
Always 1st time homebuyers and
45 max DTI – 43 if a manual underwrite

8. Comparing Programs (cont)
CalHFA Con
CalHFA FHA
CalPlus Con
Cal Plus FHA
MHA 2ND
ZIP (2nd or 3nd)
School Program
MI – Genworth
18% on 97% LTV16% on 95%
FHA MIP
MI 18% on 97% LTV16% on 95% LTV Genworth
n/a
Home Warranty must include water heater(s), air conditioning and heating
Home Warranty same as Conventional, but FHA also required oven stove and range
Note the MI on a conventional is much less than on a regular Conventional loan. Home Warranties are required. Please note the differences between Conventional and FHA. Be sure to include a fee for this on your up front disclosures.

9. Fees and Lock Periods FEES FOR THE PROGRAM LOCK PERIODS
BORROWER PAID ONLY
Broker Compensation 2.375% or $3000 whichever is more (must pass 3% points and fees test)
1st TD: $1350 Essex Admin Fee
2nd TD: If using My Home Assistance or Extra Credit Teacher : $250 Essex Processing Fee (you can’t use together)
2nd TD: If using ZIP for a 2nd or 3rd: $11.95 MERS Fee
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:
How much of your production with Essex can be CalHFA products? 50%
Option for unlimited CalHFA’s:
origination fee + $ $250 Ask your AE how this can be done.
This a borrower paid program. To meet Mavent, we have figured is a safe bet on how much you can make without exceeding 3 points. We have an Admin fee of $1350 along with a $250 processing fee on the 2nd and a $11.95 fee for the 3rd if you choose to use a 3rd. BE SURE TO INCLUDE YOUR HOME WARRANTY FEE ON YOUR DISCLOSURES

10. Refer to CalHFA Loan limitations for FHA and Conventional
Income Limits - regardless of household size (effective ) & Sales Price Limits
$765,000 Statewide
Refer to CalHFA Loan limitations for FHA and Conventional
Income limits – no longer by number of family members
Sales price limitations to $705,000 – refer to “loan” limitations per FHA and FNMA

11. Income Calculations - Differences
Lender –Qualifying Income
CalHFA – Eligibility In come
Same standard calculations per guidelines
Average 2 years Plus YTD
Exclude variable income that does not have a 2 year history
Exclude child support that has less than 3 years continuance
Gross up the non-taxable income
Include all borrower’s income
Average last year and YTD – max 24 months
Include variable income, even if no history
Include child support even if it does not continue
Do not gross up non-taxable income
There are two ways to qualify your borrower – the standard FHA way and the CalHFA way. CalHFA will always use the maximum income when qualifying. A few differences would be: overtime – even if just receiving it. Child support even if it is not to continue. They will average last year and YTD – a maximum of 24 months. All income counted. Different from FHA.

12. Sample Loan Scenario http://www.calhfa.ca.gov/calc/scenario.html
ON LINE, CALHFA OFFERS A MORTGAGE CALCULATOR. THIS IS A GREAT TOOL. IT WILL HELP YOU CALCULATE THE BEST WAY TO USE THE FUNDS. HAVE YOUR ESTIMATED CLOSED COST AVAILABLE so that your numbers will be accurate.

13. SAMPLE PRICING (subject to change) found on page 1 of rate sheet
This is a sample of the pricing. Always check the most current rate sheet for rates and product availability.

14. Property
Guest Houses (granny units) are eligible; zoned for SFR/must meet city/county zoning Cannot be zoned for 2-4
No income producing; personal use only
No Manufactured housing (Essex requirement)
No Leasehold
Non permitted additions/alterations per FNMA or FHA guidelines
Lot size – max 5 acres
A few property guidelines to be aware of.

15. 1ST Time Homebuyer – Homebuyer Education & When due and payable
First Time Homebuyer (FTHB)
Home Buyer Education
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
WHEN IS LOAN DUE AND PAYABLE:
Repayment of the principal and interest on the subordinate loan shall be due and payable at the earliest of the following events:
• Transfer of title
• Sale of the property*
• Payoff of the first loan
• Refinance of the first loan, unless the CalHFA junior lien is subordinated
• The formal filing and recording of a Notice of Default (unless rescinded)
Payoff or refinance of the unless the ZIP is resubordinated.
*My Home and the School Program loans behind an FHA first mortgage may be assumed or paid off when the first mortgage is assumed
What constitutes a 1st time homebuyer? Home Education is required for only “one” occupying 1st time homebuyer.
Please take note of the answers above to what constitutes a CalHFA loan to be due and payable.

16. How to Submit 1st TD 2nd TD 3rd TD (if there is a 3rd)
Broker to use additional Addendum Submission Sheet for CalHFA in addition to regular Submission Sheet.
Choose the Option Plan.
Broker to register and create a loan number for each loan submitted
Broker to register and create a loan number
Essex will disclose
Submit submission sheet & addendum, fees worksheet, wet signed 4506T, and complete credit package
1003 for the 2nd (3.2)
1003 for the 3rd (3.2)
Additional Forms for the program: CALHFA Borrower Affidavit
and Tax Affidavit if applicable (forms on Essex website)
N/A
3 years 1040’s
We need a loan number for each loan you upload. Please use the SUBMISSION SHEET ALONG WITH CALHFA ADDENDUM checklist for uploading CalHFA loans which is on the web site: essexwholesale.com PRODUCTS/CALHFA

17. CALHFA Addendum Submission Sheet http://www. essexwholesale
Under our Products – CalHFA you will find this helpful worksheet in submitting your CalHFA loan. Please review and use this to get a clean submission and quick approval.

18. How to run DU Conventional
Helpful notes on how to run DU.

19. How to run DU FHA Note: The rates and % of loan has changed from this SAMPLE See daily rate sheet for most current rates – below are sample rates and %’s ONLY. Call your AE if you have any questions.

20. Additional required CALHFA Forms at time of submission:
CalHFA Addendum Submission Sheet
CALHFA Borrower Affidavit dated
Tax Return Affidavit (only required if not required to file 1040’s)
These forms can be found at click on Products - CalHFA
Home Buyer Education: (required for one occupying 1st time buyer – not required for non-1st time homebuyers if using ZIP only – it is required for all My Home Assistance products)
On line:
Forms required. These too can be found on the web under PRODUCTS CalHFA

21. Conventional Mortgage Insurance
MI requirements for Conventional CalHFA loans – You will see these are much less than a regular conventional loan.