1. Introducing our 100% DPA PRODUCT LET US HELP YOU BUY THAT HOME TWO CHOICES – ADVANTAGE OR EDGE
Welcome to our 100% Down Payment Assistant Program. We are very happy that we can offer this to your and your clients. This is a great way for your borrowers to buy a home without having to meet their 3 ½% down payment requirement

2. The program offers to options. The product itself is fairly simple
The program offers to options. The product itself is fairly simple. You have the choice of the Advantage or Edge. The items I have highlighted in the next two screens differentiates the two products.
This program allows you to have an FHA 1st – Conforming loan limits. Along with that we offer a 3 ½% 2nd at a term of 10 amortized and 8% Note rate. It is repayable and does require a payment in the debt ratios.
There is no 1st time homeownership requirement. The FICO is 640 for both products. The Advantage has ratios to 50%; Edge can go to – both requiring a DU approval. The Advantage has an income restriction; Edge does not. Advantage is SFR ; Edge allows up to 2 units. There are not sales price restrictions.

3. More Facts on Advantage & edge

4. PROGRAM LOCKING & Program fees
PROGRAM LOCKING & Program fees any fee below affects the 3% point and fees test.
Loan must be locked by 1:00 PM, PST
Loan must have loan approval and appraisal signed off by underwriter in order to lock
$1095 Admin fee to Essex
Advantage: Lender paid if meets 3% points and fees –It may be best to disclose your Lender comp in case you have to switch to Borrower paid.
Edge – Lender paid if it meets 3% points and fees –It may be best to disclose your Lender comp in case you have to switch to Borrower paid.
Program hits, i.e. FICO score and loan amount hits also go toward points and fees.
You may charge a third party Contract Processing Fee max $1000 if it passes 3% test.
Programs Codes:
Advantage: 1st: FHA CHRA
2ND: CHRA
Edge: 1st FHA 3030CH
2ND: 4030CHDPA
Things to remember when locking: Your loan must have a loan approval and the appraisal signed off by underwriter. Loan must be locked by 1:00. We have an Admin fee of $1095 (remember at time of disclosure).
We have provided programs codes to use when completing your submission sheet at time of submission. Submission sheets can be found at Forms and documents

5. SAMPLE RATE SHEET FOR Advantage and edge 100% DPA Products
Here is an example of a rate sheet. On the previous fact sheet, you will have noticed that I put 640 as the max FICO. In realty, and depending when you are viewing this power point, the is still available for all loans that are locked by 3/31/19. If your loan does fall under you would be required to have Homeownership Counselling. So, let’s see what happens when you lock a loan that is the Advantage Program. This will be an example of a Advantage – 680 FICO, loan amount of 5.25% Since there are no loan or FICO adjustments, your pricing would be 5.25 with 2% rebate borrower paid. If you locked this Lender Paid and your comp plan was 1.75, you would have a discount of .750 due. Make sense? Remember at all times, you must meet the 3% points and fees test of MAVENT.

6. Secondary Financing on 1003
These two screen shots help you when completing your 1003 – this is how you disclose the 2nd.

7. Secondary Financing –DO/DU
Page 2-Types, Terms, & Property
Page 7-Transaction Details
This screen is to help you when running your DU on how to disclose the 2nd.

8. Select the state, select the county, click the button “View County Calculations”
Go to the HUD Area Median Income Site. This can be found online at:
If you are hoping to use the Advantage Program, your borrower does need to meet the income limitation as described above.
First go to the link above. Pick your state and county.

9. Always begin at 1-4 people living in the house,  2 people always use 4, 3 people always use 4.. you get the idea, that’s why 4 is in bold as you begin there J
LOS ANGELES COUNTY here are sample income limits, LA County at min the income limit is 111,435 for 1 to 4 people in household
The 1-4 person household very low income is $48,450 x 2= $96,900 and if you multiply that number by 115% the result is $111,435 for a household of 1-4 persons.
The 6 person household very low income is $56,200 x 2 = $112,400 and if you multiply that number by 115% the result is $129,260 for a household of 6 persons.
The 8 person household very low income is $64,000 x 2 = $128,000 and if you multiply that number by 115% the result is $147,200for a household of 8 persons
This is a little tricky. You will always use the column that states ‘VERY LOW 50%)
If you have a family of 1-4 people, pass over the 1-3 persons category and go straight to the 4. If you have a family of 5, 6,7,or 8, go that that particular category. Take that number given - times it by 2 and then add another 15% on top of that number and that would be your max income. The above gives you an example of 6 people in the family. $56,200 x 2 = $112,400 and mulitply that by 115% and result would be $129,260 for a household of 6 persons. If you run in to a problem in trying to come up with the right figure for your circumstances, please contact your AE.

10. Next Steps…
Process your loan file as usual (upload 1st& 2nd – 2 loan numbers)
1st: FHA guidelines (okay to use FHA submission sheet); submit complete file.
2nd : Submit 1003 with loan amount of 2nd – and submission sheet (nothing else)
Programs Codes:
Advantage: 1st: FHA CHRA
2ND: CHRA
Edge: 1st FHA 3030CH
2ND: 4030CHDPA
Advise of both loan numbers when uploaded.
We approve – We fund!
Okay, it’s pretty simple right? I hope you find it as exciting as we have. The phones are ringing off the hook for this product. The rates are great, the DPA is great to have and if you get some seller concessions to help you along in closing this loan, you will wind up with a happy borrower!
One last thing….Essex approves this loan in house. There is no need for a prior approval from any other investor.
Now it it’s up to you! Get that loan (actually 2 loans) submitted today!
Thank you for wanting to learn about this new and exciting product for Essex.